Credo Technology Group (NASDAQ:CRDO) Shares Down 20% After Analyst Downgrade

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price traded down 20% during trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $335.00 to $310.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Credo Technology Group traded as low as $161.95 and last traded at $165.22. Approximately 29,619,503 shares traded hands during trading, an increase of 303% from the average session volume of 7,341,942 shares. The stock had previously closed at $206.63.

Several other equities analysts have also recently weighed in on CRDO. Mizuho raised their price objective on Credo Technology Group from $260.00 to $290.00 and gave the company an “outperform” rating in a research note on Tuesday, June 2nd. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. TD Cowen boosted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, August 18th. Rosenblatt Securities boosted their target price on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Jefferies Financial Group increased their target price on Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Credo Technology Group has an average rating of “Moderate Buy” and an average target price of $267.39.

Insider Buying and Selling

In other news, CTO Chi Fung Cheng sold 27,473 shares of Credo Technology Group stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the completion of the sale, the chief technology officer owned 5,772,397 shares in the company, valued at approximately $1,209,490,343.41. This trade represents a 0.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the business’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the transaction, the chief financial officer directly owned 504,708 shares of the company’s stock, valued at $124,097,603.04. The trade was a 1.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 435,076 shares of company stock valued at $101,043,506. Company insiders own 9.06% of the company’s stock.

Key Stories Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo reported fiscal Q1 2027 revenue of $479 million, up 114.7% year over year, and adjusted earnings of $1.20 per share. Both figures exceeded consensus estimates of $473.3 million and $1.17, respectively. Credo Technology Group Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management guided fiscal Q2 revenue to $525 million-$535 million, above the $513.8 million analyst consensus, signaling continued demand from artificial-intelligence data centers. Credo Expects Q2 Revenue of $525 Million to $535 Million
• Positive Sentiment: Optical products are emerging as a major growth driver, with fiscal 2027 optical revenue expected to exceed $600 million as active electrical cable demand expands. Credo also achieved PCIe 6.x compliance for its Toucan retimer, supporting its positioning in next-generation AI and high-performance computing infrastructure. Credo Q1 Earnings Call Highlights Optics as the Next Growth Engine
• Neutral Sentiment: Analysts remain broadly constructive but trimmed some targets: JPMorgan lowered its target to $310 while maintaining an Overweight rating, and Bank of America cut its target to $275 while retaining Buy. Rosenblatt raised its target to $235 but kept a Neutral rating.
• Negative Sentiment: The earnings beat was overshadowed by shrinking margins and rising expenses, raising concerns that rapid growth may be becoming more costly to sustain. Why Is Credo Technology Stock Sinking Wednesday?
• Negative Sentiment: After a major year-to-date rally, investors appear to be taking profits and demanding results above already-high expectations. The stock also fell below its 200-day moving average, a negative technical signal that may intensify selling. Valuation, customer concentration and execution risks surrounding the optical ramp remain additional concerns. Credo Breaks Below 200-Day Moving Average After Earnings

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System grew its stake in shares of Credo Technology Group by 28,062.9% in the second quarter. California State Teachers Retirement System now owns 67,840,375 shares of the company’s stock worth $18,449,190,000 after purchasing an additional 67,599,489 shares during the last quarter. State Street Corp lifted its holdings in Credo Technology Group by 23.4% in the 4th quarter. State Street Corp now owns 4,486,320 shares of the company’s stock worth $645,537,000 after buying an additional 849,654 shares during the period. Geode Capital Management LLC grew its position in shares of Credo Technology Group by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock worth $555,117,000 after buying an additional 184,676 shares during the last quarter. Corient Private Wealth LLC grew its position in shares of Credo Technology Group by 239,024.5% in the 4th quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock worth $517,835,000 after buying an additional 3,597,318 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in shares of Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company’s stock valued at $283,778,000 after buying an additional 1,218,504 shares during the period. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Price Performance

The stock has a market capitalization of $31.05 billion, a PE ratio of 66.62, a PEG ratio of 1.02 and a beta of 3.22. The company has a 50 day moving average price of $235.81 and a 200-day moving average price of $188.53.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The company had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. During the same quarter in the previous year, the company earned $0.52 earnings per share. Credo Technology Group’s quarterly revenue was up 114.7% on a year-over-year basis. As a group, equities analysts anticipate that Credo Technology Group Holding Ltd. will post 4.89 earnings per share for the current year.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.