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Credo Technology's CTO sells over $1.2m in company shares

Published 04/15/2024, 06:22 PM

Credo Technology Group Holding Ltd's (NASDAQ:CRDO) Chief Technology Officer, Cheng Chi Fung, has recently sold a significant number of company shares, transactions totaling over $1.2 million. The sales, which took place on April 11, 2024, were conducted under a pre-arranged trading plan and involved multiple trades at varying prices.

The transactions were executed in several batches with prices ranging from $20.9811 to $22.9821 per share. Specifically, one set of transactions was carried out in a price range from $20.80 to $21.77, another in the range of $21.81 to $22.80, and the last set between $22.81 to $23.04. These price ranges represent the weighted average sale prices reported for the respective batches of shares sold.

The total amount realized from these sales by Cheng Chi Fung was approximately $1,216,880, reflecting a notable movement in the ownership of the company's shares. Following these sales, the reporting documents indicate that Cheng Chi Fung still holds a substantial number of shares indirectly through the Cheng Huang Family Trust, amounting to millions of shares post-transaction.

The Cheng Huang Family Trust, where Cheng Chi Fung and his spouse are trustees and beneficiaries alongside their children, undertook these sales in accordance with a Rule 10b5-1 trading plan established on September 7, 2023. This trading plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.

Investors often monitor insider transactions as they may provide insights into executives' perspectives on the company's current valuation and future prospects. However, it's important to note that such sales can be motivated by a variety of personal financial planning reasons and do not necessarily reflect a negative outlook on the company's future by the insider.

Credo Technology Group Holding Ltd, known for its work in the semiconductor space, continues to be a key player in the industry, with its executives' transactions being closely watched by market participants for potential signals about the company's health and trajectory.

InvestingPro Insights

Amidst the recent sale of shares by Credo Technology Group Holding Ltd's (NASDAQ:CRDO) Chief Technology Officer, Cheng Chi Fung, investors are keen to understand the financial health and market position of the company. According to InvestingPro data, the company's market capitalization stands at $3.5 billion, reflecting a significant presence in the semiconductor industry. Despite a challenging revenue growth rate of -13.37% over the last twelve months as of Q3 2024, Credo Technology Group has managed to maintain a gross profit margin of 59.69%, indicating a strong ability to control costs relative to revenue.

InvestingPro Tips suggest that Credo Technology Group is expected to see net income growth this year, with analysts predicting the company will become profitable within the year. This is a crucial metric for investors considering the recent insider transactions, as it provides a positive outlook on the company's future earnings potential. Additionally, the company's stock price has experienced a significant uptick, with a 145.22% return over the last year, which could be a factor in the timing of the insider's sale, capturing gains from the stock's strong performance.

Investors looking to delve deeper into the financials and forecasts for Credo Technology Group can find additional InvestingPro Tips, including insights on the company's liquidity and valuation multiples, at https://www.investing.com/pro/CRDO. For those interested in a comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to a total of 13 InvestingPro Tips for Credo Technology Group Holding Ltd.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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