Credo Technology Group (NASDAQ:CRDO) Announces Earnings Results, Beats Estimates By $0.03 EPS

Credo Technology Group (NASDAQ:CRDO) released its earnings results on Tuesday. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03, FiscalAI reports. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The firm had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million.

Credo Technology Group Stock Performance

NASDAQ CRDO traded down $19.56 on Tuesday, reaching $206.63. The stock had a trading volume of 8,286,029 shares, compared to its average volume of 7,198,641. The stock has a market cap of $38.83 billion, a P/E ratio of 83.32, a price-to-earnings-growth ratio of 1.06 and a beta of 3.23. The business’s 50-day moving average price is $237.11 and its 200 day moving average price is $187.97. Credo Technology Group has a 12-month low of $86.49 and a 12-month high of $308.67.

Analyst Ratings Changes

CRDO has been the topic of several analyst reports. Needham & Company LLC raised their target price on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Roth Capital increased their price objective on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Wall Street Zen downgraded shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Rosenblatt Securities restated a “neutral” rating and issued a $215.00 price target on shares of Credo Technology Group in a research note on Monday, August 24th. Finally, Evercore initiated coverage on Credo Technology Group in a report on Monday, June 22nd. They issued an “outperform” rating and a $325.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Credo Technology Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $268.39.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Quarterly results exceeded estimates: Credo reported $1.20 in EPS versus the $1.17 consensus, while revenue of $479.0 million topped expectations of $473.3 million. The company also posted a 35.37% net margin and 32.30% return on equity. Credo Technology Group earnings press release
• Positive Sentiment: Analyst expectations remain constructive: The consensus price target implies approximately 28.2% potential upside, and recent upward earnings-estimate revisions could support the stock if Credo delivers stronger growth. Wall Street analysts on Credo price target
• Positive Sentiment: AI connectivity positioning: Credo joined the Open CPX MSA organization, supporting interoperable near-package and co-packaged optical interconnects for AI infrastructure. The move may strengthen its long-term opportunity with hyperscale customers. Credo joins Open CPX MSA organization
• Neutral Sentiment: Large move expected: Options-market activity indicated investors were positioning for an outsized move around earnings, reflecting elevated uncertainty rather than a clear directional signal. Credo options market ahead of earnings
• Negative Sentiment: High valuation raises the bar: Credo entered the report with substantial year-to-date gains, a high beta, and a price well above its 200-day moving average. Investors may be demanding stronger guidance or accelerating margins beyond the modest quarterly beat.
• Negative Sentiment: Key risks remain: Coverage highlighted optical margins and hyperscaler concentration as potential pressure points. Reports also cited insider selling and a prior decline from the yearly high, adding to caution ahead of the results. Credo insider selling and options market risks

Insider Activity at Credo Technology Group

In related news, CFO Daniel W. Fleming sold 7,580 shares of the company’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the sale, the chief financial officer owned 504,708 shares in the company, valued at $124,097,603.04. This represents a 1.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 55,441 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the sale, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 435,076 shares of company stock worth $101,043,506 in the last 90 days. 9.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Alberta Investment Management Corp purchased a new stake in shares of Credo Technology Group during the fourth quarter worth approximately $4,000,000. Mercer Global Advisors Inc. ADV grew its position in Credo Technology Group by 28.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,010 shares of the company’s stock valued at $1,236,000 after buying an additional 2,001 shares during the last quarter. Braeburn Wealth Management LLC acquired a new position in Credo Technology Group in the 4th quarter valued at $702,000. Vident Advisory LLC raised its position in Credo Technology Group by 7.2% during the 4th quarter. Vident Advisory LLC now owns 3,776 shares of the company’s stock worth $543,000 after buying an additional 252 shares during the last quarter. Finally, Delta Global Management LP acquired a new stake in shares of Credo Technology Group in the 4th quarter worth $2,211,000. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

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.