Credo Technology Group Holding Ltd (NASDAQ:CRDO) has reported that its Chief Technology Officer, Cheng Chi Fung, has sold a total of 55,000 ordinary shares of the company. The transactions, which took place on April 19, 2024, resulted in proceeds exceeding $950,000.
According to the filing details, the shares were sold in two separate transactions. In the first transaction, 50,996 shares were sold at a weighted average price of $17.2606, with individual sale prices ranging from $16.83 to $17.82. The second transaction involved 4,004 shares sold at a weighted average price of $17.8819, with sale prices between $17.83 and $17.95.
The shares sold by Cheng were held by the Cheng Huang Family Trust, indicating indirect ownership. Cheng, along with his spouse, serves as a trustee, and they, along with their children, are beneficiaries of the trust. However, Cheng disclaims beneficial ownership of the shares, except to the extent of his pecuniary interest.
The sales were conducted under a Rule 10b5-1 trading plan, which was adopted by the Cheng Huang Family Trust on September 7, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling shares to avoid accusations of insider trading.
Following these transactions, the Cheng Huang Family Trust still indirectly owns a substantial number of Credo Technology shares, ensuring continued interest in the company's performance and alignment with shareholder value.
Investors and market watchers often monitor insider sales for insights into executives' perspectives on their company's prospects. Credo Technology Group Holding Ltd, which operates in the semiconductor and related devices industry, remains a closely watched company in the tech sector.
InvestingPro Insights
Amid the insider transactions at Credo Technology Group Holding Ltd (NASDAQ:CRDO), investors may find the recent performance and expectations for the company to be of interest. With a market capitalization of $2.83 billion, CRDO's financial health and stock performance have shown mixed signals, as reflected in the real-time data and expert analysis available on InvestingPro.
One of the notable InvestingPro Tips is the company's strong liquidity position, holding more cash than debt on its balance sheet. This can be a reassuring sign for investors, as it suggests the company has a buffer to manage its financial obligations and invest in growth opportunities. Additionally, while the company has not been profitable over the last twelve months, analysts predict that CRDO will turn profitable this year, potentially marking a pivotal point for the company's financial trajectory.
From a stock performance perspective, CRDO has experienced significant volatility, with the stock price taking a substantial hit over the last week, decreasing by -10.63%, and underperforming over the last month with a -21.24% return. Yet, it's worth noting the high return over the last year, standing at 101.86%, which may attract investors looking for growth potential in the tech sector.
For those interested in delving deeper into Credo Technology Group Holding Ltd's financials and stock performance, InvestingPro offers additional tips and insights. There are 10 more InvestingPro Tips available that can provide a comprehensive view of the company's position and future outlook. To access these valuable insights, investors can visit https://www.investing.com/pro/CRDO and use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
InvestingPro Data metrics such as the P/E ratio, currently at -99.32, and the forward P/E (adjusted) for the last twelve months as of Q3 2024 at -84.91, reflect the market's expectations of future earnings growth despite recent losses. The company's revenue for the last twelve months as of Q3 2024 stands at $164.28 million, with a gross profit margin of 59.69%, showcasing the company's ability to maintain profitability on its core operations, even as it navigates a challenging market environment.
Overall, the combination of CRDO's solid liquidity, anticipated profitability, and recent stock volatility presents a multifaceted picture for investors. By considering these insights alongside the insider selling activity, investors can better understand the potential risks and opportunities associated with Credo Technology Group Holding Ltd.
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