Credo Technology Group (NASDAQ:CRDO) Stock Falls 4.9% – Time to Sell?

Posted by Brenda Bartman on Oct 18th, 2026

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Get Free Report) dropped 4.9% during mid-day trading on Friday. The company traded as low as $168.56 and last traded at $169.70. Approximately 6,190,615 shares were traded during mid-day trading, a decline of 18% from the average session volume of 7,589,259 shares. The stock had previously closed at $178.50.

Credo Technology Group News Summary

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

Positive Sentiment: Credo is starting a new optical connectivity standards group, an initiative that could help shape industry requirements and support adoption of its optical products across AI data centers. Credo starts optical connectivity standards group
Positive Sentiment: Recent coverage emphasizes Credo’s role in solving connectivity and reliability bottlenecks between processors in large AI clusters. Its high-speed connectivity products could become increasingly important as hyperscalers expand AI infrastructure. Credo AI connectivity outlook
Positive Sentiment: The company’s latest reported quarter showed revenue rising 114.7% year over year to $479 million, exceeding estimates, while EPS also beat expectations. This performance supports the bullish view that AI-related demand remains strong.
Neutral Sentiment: Rosenblatt reaffirmed a “Neutral” rating but raised its price target to $235, implying meaningful potential upside from recent levels. Broader analyst sentiment remains positive, although target-price reductions and comparisons with Arm and Coherent highlight valuation and execution risks.
Negative Sentiment: CRDO has been pressured alongside other AI infrastructure stocks by sector-wide profit-taking. With a premium earnings multiple, high volatility and reliance on major customers, the stock is particularly sensitive to changes in AI spending expectations.
Negative Sentiment: Director Pantas Sutardja sold approximately $326,819 of stock under a pre-arranged Rule 10b5-1 plan. The sale represented only 0.03% of his holdings, limiting its significance, but insider selling may still weigh on investor sentiment. Credo director stock sale

Analyst Ratings Changes

A number of brokerages have commented on CRDO. Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Wall Street Zen lowered Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Weiss Ratings lowered Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, October 6th. TD Cowen raised their price objective on Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a research note on Tuesday, August 18th. Finally, Stifel Nicolaus reduced their price objective on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Credo Technology Group presently has a consensus rating of “Moderate Buy” and an average price target of $262.67.

Get Our Latest Analysis on Credo Technology Group

Credo Technology Group Price Performance

The company has a market capitalization of $31.90 billion, a price-to-earnings ratio of 60.39, a P/E/G ratio of 0.68 and a beta of 3.25. The stock has a fifty day simple moving average of $204.44 and a 200-day simple moving average of $204.83.

Credo Technology Group (NASDAQ:CRDO – Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. The business had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The business’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.52 EPS. As a group, equities analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In related news, COO Yat Lam sold 55,441 shares of the stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the sale, the chief operating officer directly owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $193.12, for a total transaction of $5,310,800.00. Following the sale, the chief technology officer owned 5,689,897 shares in the company, valued at approximately $1,098,832,908.64. This represents a 0.48% 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. Over the last quarter, insiders sold 468,786 shares of company stock valued at $95,025,003. Company insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Reflection Asset Management purchased a new stake in shares of Credo Technology Group during the 4th quarter worth about $25,000. Orion Capital Management LLC purchased a new position in shares of Credo Technology Group in the 2nd quarter valued at about $27,000. AlphaCentric Advisors LLC purchased a new position in shares of Credo Technology Group in the 1st quarter valued at about $33,000. Burkett Financial Services LLC purchased a new position in shares of Credo Technology Group in the 3rd quarter valued at about $33,000. Finally, Western Wealth Management LLC purchased a new position in shares of Credo Technology Group in the 1st quarter valued at about $38,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

(Get Free Report)

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.