Credo Technology Group Faces Bearish Sentiment Amid Options Trades

Credo Technology Group sees bearish sentiment with 75% of options traders opting for puts. With a trading price of $77.24 and a recent uptick, investors should be cautious as earnings announcement approaches in 40 days.

Date: 16-01-2025

AI Rating: 5

Market Sentiment: The report indicates a strong bearish sentiment among major options traders for Credo Technology Group (CRDO) with 75% bearish against 16% bullish sentiment.

Options Activity: A notable discrepancy between put and call options indicates a significant bearish bias, particularly with a put worth $28,800 compared to calls totaling $419,290. This might imply that traders expect a decline in CRDO's stock price.

Price Movements: The analysis of expected price movements shows that traders are focused on a price band between $45.0 and $85.0. The current trading price at $77.24 suggests the stock is in a mid-range position within this band.

Expert Ratings: Despite the bearish options sentiment, analysts maintain positive ratings for CRDO. **Stifel** has a Buy rating with a $80 price target, **Mizuho** and **Goldman Sachs** maintain their Outperform and Buy ratings with target prices of $85 and $84 respectively. These ratings could bolster investor confidence despite the mixed sentiment in options trading.

Performance Indicators: The report mentions that CRDO's stock is showing a slight increase of 2.33% and has a current trading volume of 1,494,065, positioning it for further analysis as it approaches its earnings announcement expected in 40 days. RSI indicators suggest the stock may be nearing overbought conditions.

In conclusion, while analysts hold a more optimistic view with positive ratings and price targets above the current price, the overwhelming bearish sentiment in options trading indicates that investors should remain cautious. A tight watch on the upcoming earnings announcement will also be important for gauging any shifts in sentiment.

Stocks: CRDO