Credo Technology Group (NASDAQ:CRDO) Stock Falls 17.7% – Time to Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares fell 17.7% on Thursday. The stock traded as low as $110.83 and last traded at $112.33. 16,247,297 shares traded hands during trading, an increase of 112% from the average session volume of 7,669,491 shares. The stock had previously closed at $136.50.

Credo Technology Group News Roundup

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

• Positive Sentiment: A Seeking Alpha contributor upgraded Credo, arguing that the recent sell-off has gone far enough—potentially signaling that the lower share price has improved the risk-reward profile. Credo: The Sell-Off Has Done Its Job (Rating Upgrade)
• Positive Sentiment: Credo and Oracle secured Open Compute Project approval for two optical telemetry standards, supporting Credo’s role in developing connectivity and reliability for next-generation AI data centers. Credo and Oracle Drive AI Optical Innovation
• Neutral Sentiment: Coverage notes that Credo and other AI-hardware companies have delivered strong results, but cautions that supply bottlenecks and customer concentration could limit further gains. The AI Boom Is Creating a New Set of Winners
• Negative Sentiment: A broader tech-sector decline drove a steep drop in CRDO, as investors reassessed AI-related stocks. Separate coverage tied the sell-off to fears that political changes could pose a downside risk to AI spending; that concern, however, has not appeared in Credo’s guidance or analyst estimates. Tech selloff sends Credo Technology down Credo Sinks as Political Fears Weigh on AI Stocks

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on CRDO shares. Rosenblatt Securities reaffirmed a “neutral” rating and issued a $235.00 price objective on shares of Credo Technology Group in a research note on Thursday, October 15th. Stifel Nicolaus decreased their price target on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating on the stock in a research note on Monday, October 5th. Bank of America cut their target price on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, September 2nd. Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Finally, Susquehanna increased their price target on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group Trading Up 7.3%

The stock has a market cap of $22.65 billion, a P/E ratio of 42.89, a price-to-earnings-growth ratio of 0.56 and a beta of 3.29. The company’s fifty day simple moving average is $178.67 and its 200-day simple moving average is $180.29.

Credo Technology Group (NASDAQ:CRDO) last announced its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company’s revenue was up 114.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.52 earnings per share. As a group, analysts expect that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO William Brennan sold 16,666 shares of the business’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $174.87, for a total value of $2,914,383.42. Following the sale, the chief executive officer directly owned 1,584,164 shares in the company, valued at $277,022,758.68. The trade was a 1.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the completion of the sale, the insider owned 164,223 shares in the company, valued at $33,665,715. This trade represents a 2.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 352,538 shares of company stock worth $67,200,077 over the last 90 days. 9.06% of the stock is currently owned by corporate insiders.

Institutional Trading of Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the business. Orion Capital Management LLC bought a new stake in shares of Credo Technology Group in the second quarter valued at about $27,000. Hoey Investments Inc. bought a new stake in Credo Technology Group in the 3rd quarter valued at about $31,000. Burkett Financial Services LLC acquired a new position in shares of Credo Technology Group during the 3rd quarter worth approximately $33,000. Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of Credo Technology Group by 4,900.0% during the third quarter. Thurston Springer Miller Herd & Titak Inc. now owns 200 shares of the company’s stock worth $39,000 after purchasing an additional 196 shares during the period. Finally, Alpine Bank Wealth Management bought a new position in shares of Credo Technology Group during the third quarter worth approximately $40,000. Institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

Credo Technology Group designs and supplies high-speed connectivity solutions for data infrastructure, including data centers and networking systems. Its products help move data between processors, servers, switches and other equipment used in demanding, high-bandwidth environments.

The company’s offerings include active electrical cables, semiconductor and optical digital signal processing products, retimers, and other connectivity components. These solutions are used in applications such as cloud computing and artificial intelligence infrastructure.

Credo is headquartered in San Jose, California, and serves customers in the global data infrastructure market.