Credo Technology Group Holding Ltd (NASDAQ:CRDO) director Tan Lip Bu has sold a total of $275,646 worth of company shares, according to a recent SEC filing. The transactions occurred over two consecutive days, with shares sold at prices ranging between $31.7545 and $31.8796.
On the first day, Tan disposed of 894 shares at a weighted average price of $31.7545, which is within the reported range of $31.75 to $31.77. The following day saw a larger transaction with 7,756 shares sold at an average of $31.8796, with individual trades varying from $31.75 to $32.01. These weighted average prices were calculated based on multiple trades executed during the day.
Following these transactions, Tan Lip Bu's indirectly held shares, which are managed through Walden Technology Ventures Investments II, L.P., decreased to 3,331,023. Additionally, Tan holds indirect positions through A&E Investment LLC and the Lip-Bu Tan and Ysa Loo Trust, with 48,736 and 167,583 shares respectively.
Tan, who serves as the Managing Director of China Walden Venture Investment II G.P., Ltd., and as the Manager of A&E Investment LLC, has indicated that these indirect holdings are part of family trusts and other investment entities. He has disclaimed beneficial ownership of these shares, except to the extent of his pecuniary interest.
Investors and followers of Credo Technology Group Holding Ltd will continue to monitor insider transactions as they can provide insights into the company's performance and the confidence level of its executives and directors in the firm's prospects.
In other recent news, Credo Technology Group Holding Ltd. reported record revenues for the fourth quarter of fiscal year 2024, primarily driven by its artificial intelligence (AI) applications. The company posted a significant year-over-year revenue growth, with earnings per share also seeing a notable increase. Furthermore, Credo's Q4 revenue reached a record $60.8 million, marking an 89% increase year-over-year. AI deployments were a key growth driver, contributing to approximately three-quarters of Q4 revenue.
Additionally, Credo Technology saw its stock rating upgraded to Buy from Hold by TD Cowen, which also raised the price target for Credo's shares to $35.00, up from the previous target of $24.00. This upgrade comes with a positive outlook on the company's role in the advancement of higher line-rate speeds, crucial beyond 800G.
Looking ahead, Credo anticipates a continued expansion in AI revenue and a strategic focus on customer-specific solutions. The company expects AI revenue to double from Q4 fiscal year '24 to Q4 fiscal year '25. However, Q1 revenue for fiscal year '25 is forecasted to be between $58 million and $61 million, indicating a 2% sequential decrease. These are some of the recent developments for Credo Technology Group Holding Ltd.
InvestingPro Insights
As Credo Technology Group Holding Ltd (NASDAQ:CRDO) sees insider trading activity, investors are also eyeing the company's financial metrics and market performance. According to InvestingPro data, Credo Technology Group boasts a market capitalization of $5.18 billion, reflecting the company's substantial size within its sector. Despite a challenging P/E ratio, which currently stands at -161.66, the company's gross profit margin is impressive at 61.89% for the last twelve months as of Q4 2024. This margin indicates a strong capability to control costs relative to revenue.
InvestingPro Tips suggest that Credo Technology Group holds more cash than debt on its balance sheet, which is a positive sign for financial stability and operational flexibility. Additionally, analysts are optimistic about the company's future, predicting net income and sales growth in the current year. Moreover, the company's stock has experienced a substantial price uptick over the last six months, with a total return of 74.57% in that period, showcasing strong investor confidence and market momentum.
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