Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported that its Chief Technology Officer, Cheng Chi Fung, has sold a significant number of shares in the company. According to the latest filings, the CTO sold shares worth over $1.2 million.
The transactions, which took place on March 21, 2024, involved the sale of 43,390 ordinary shares at a weighted average price of $21.8256 and an additional 11,610 shares at a weighted average price of $22.3345. These sales were executed in multiple trades within price ranges of $21.19 to $22.18 and $22.19 to $22.56, respectively, for the two batches of shares sold.
The filings indicate that the sales were conducted pursuant to a pre-arranged Rule 10b5-1 trading plan, which was adopted by the Cheng Huang Family Trust on September 7, 2023. This trust, where Cheng Chi Fung and his spouse serve as trustees, holds the shares sold. It is noted that the CTO disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
Following these transactions, the Cheng Huang Family Trust still holds a substantial number of Credo Technology shares, with Cheng Chi Fung's direct and indirect ownership amounting to a considerable stake in the company.
Investors often monitor insider sales as they may provide insights into an executive’s perspective on the company’s current valuation or future prospects. However, sales under a 10b5-1 trading plan are typically scheduled in advance to avoid any accusations of trading on non-public, material information.
The semiconductor company, based in Grand Cayman, continues its operations with Cheng Chi Fung as the Chief Technology Officer, overseeing the technological advancements and innovations that Credo Technology brings to the market.
InvestingPro Insights
As Credo Technology Group Holding Ltd (NASDAQ:CRDO) navigates through the market with its CTO's recent share sale, understanding the company's financial health and future prospects becomes increasingly important for investors. According to InvestingPro, Credo Technology holds more cash than debt on its balance sheet, which can be a positive signal for financial stability and operational flexibility. Additionally, the company is expected to see net income growth this year, an optimistic outlook that might counterbalance concerns arising from insider sales.
InvestingPro data also highlights that Credo Technology has experienced significant returns over the last week, indicating a strong short-term performance. This aligns with the broader trend observed over the past year, where the company has enjoyed a high return. However, the stock's movements are noted to be quite volatile, which could suggest a higher risk profile for the stock. This volatility might be of particular interest to investors following the CTO's recent transactions.
For those looking to delve deeper into Credo Technology's financials and stock performance, InvestingPro offers additional tips, including insights on profitability, valuation multiples, and dividend policies. Currently, there are 12 more InvestingPro Tips available for CRDO, which can be accessed to gain a more nuanced understanding of the company's position and potential. Readers interested in these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolset for informed investment decisions.
InvestingPro Data Metrics for CRDO:
- Company holds more cash than debt on its balance sheet.
- Net income is projected to grow in the current fiscal year.
- The stock has shown significant return over the last week, albeit with noted volatility.
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