Credo Technology Group (NASDAQ:CRDO) Trading Down 7.3% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) dropped 7.3% on Thursday . The company traded as low as $110.68 and last traded at $114.48. Approximately 7,831,475 shares were traded during mid-day trading, an increase of 17% from the average daily volume of 6,669,645 shares. The stock had previously closed at $123.46.

Credo Technology Group News Roundup

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

• Positive Sentiment: Zacks says Credo’s preliminary Q3 revenues topped prior guidance and analysts expect EPS to surge ~284% YoY, signaling strong demand into the quarter — this underpins near-term revenue/earnings momentum. Credo Technology to Report Q3 Earnings: How to Play the Stock?
• Positive Sentiment: Credo announced a partnership with TensorWave to deploy its ZeroFlap active electrical cables and optics into next‑gen AI clusters — a commercial win that supports adoption in high‑bandwidth AI infrastructure. Credo TensorWave AI Deal Highlights Growth Hopes And Valuation Tension
• Positive Sentiment: Seeking Alpha preview is bullish overall — ties Credo to the AI infrastructure supercycle, assigns a Buy and ~40% 12‑month upside while noting upside asymmetry for investors who time the Q3 read. Credo Q3 Preview: Asymmetry Is The Art Of Alpha
• Neutral Sentiment: Comparative pieces (Yahoo/Zacks) contrast Credo’s rapid AI‑driven revenue growth and aggressive market push with Texas Instruments’ scale — useful context for valuation and competitive positioning but not an immediate catalyst. CRDO vs. TXN: Which Semiconductor Stock Is the Better Buy?
• Neutral Sentiment: Another Zacks compare piece repeats the scale vs. growth framing, reinforcing investor debate over growth premium vs. incumbent stability. CRDO vs. TXN: Which Semiconductor Stock Is the Better Buy?
• Neutral Sentiment: Industry headlines (Marvell, Photronics, Zoom) shared in the feed provide broader semiconductor and data‑center context; they matter to sector sentiment but don’t directly change Credo’s near‑term fundamentals. How MRVL’s Celestial AI Acquisition Fills Its Critical Technology Gap?
• Negative Sentiment: Short‑interest data in the feed shows a large reported increase but the figures are internally inconsistent (zeros/NaN). If accurate, rising short interest could add downward pressure; the data’s unreliability itself is a market risk until clarified. Short Interest Report (data anomaly)

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CRDO. Mizuho boosted their price objective on Credo Technology Group from $165.00 to $225.00 and gave the company an “outperform” rating in a research report on Tuesday, December 2nd. TD Cowen reissued a “buy” rating on shares of Credo Technology Group in a research report on Tuesday, December 2nd. Roth Mkm decreased their price objective on shares of Credo Technology Group from $250.00 to $200.00 and set a “buy” rating on the stock in a research report on Tuesday, February 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of Credo Technology Group in a report on Monday, December 29th. Finally, Bank of America upped their price target on Credo Technology Group from $165.00 to $240.00 and gave the company a “buy” rating in a research report on Tuesday, December 2nd. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Credo Technology Group presently has an average rating of “Moderate Buy” and an average price target of $209.29.

Credo Technology Group Trading Down 1.9%

The stock has a market cap of $20.28 billion, a PE ratio of 98.48 and a beta of 2.65. The business has a fifty day simple moving average of $133.78 and a two-hundred day simple moving average of $143.32.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings results on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.18. The company had revenue of $268.03 million for the quarter, compared to analyst estimates of $234.99 million. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.The firm’s revenue was up 272.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.07 earnings per share. On average, research analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity at Credo Technology Group

In related news, COO Yat Tung Lam sold 370,000 shares of the business’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $153.19, for a total transaction of $56,680,300.00. Following the sale, the chief operating officer owned 400,000 shares of the company’s stock, valued at $61,276,000. The trade was a 48.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO William Joseph Brennan sold 50,000 shares of the company’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $153.16, for a total transaction of $7,658,000.00. Following the completion of the sale, the chief executive officer owned 1,892,502 shares in the company, valued at approximately $289,855,606.32. This trade represents a 2.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 917,976 shares of company stock valued at $136,567,647 in the last three months. Company insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently modified their holdings of CRDO. Crewe Advisors LLC boosted its stake in Credo Technology Group by 163.1% in the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after purchasing an additional 106 shares in the last quarter. Atlantic Union Bankshares Corp purchased a new position in Credo Technology Group in the third quarter worth about $25,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Credo Technology Group during the fourth quarter valued at approximately $25,000. First Horizon Corp bought a new stake in shares of Credo Technology Group during the third quarter valued at approximately $26,000. Finally, Flagship Harbor Advisors LLC bought a new stake in shares of Credo Technology Group during the fourth quarter valued at approximately $32,000. 80.46% of the stock is currently owned by 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.