Cheng Chi Fung, the Chief Technology Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), recently sold a significant amount of company shares, according to a filing with the Securities and Exchange Commission. On November 1, Cheng sold a total of 55,000 ordinary shares, generating approximately $2.19 million. The shares were sold at prices ranging from $38.87 to $40.42 per share. These transactions were conducted under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust in September 2023. Following these sales, Cheng holds 8,783,602 shares indirectly through the family trust.
In other recent news, Credo Technology Group Holding Ltd reported significant developments. The company's 2024 Annual General Meeting saw shareholders approve key proposals, including the election of three Class III directors, the compensation package for executive officers, an amended and restated employee stock purchase plan, and the ratification of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending May 3, 2025.
The company also announced the launch of its 800G ZeroFlap family of HiWire Active Electrical Cables, designed to enhance reliability and signal integrity in artificial intelligence backend networks. Analysts from TD Cowen, Craig-Hallum, and Needham have maintained a Buy rating for Credo Technology, citing diversified revenue streams and anticipated revenue inflection in the second half of fiscal year 2025 as key factors.
In other developments, Craig-Hallum raised the stock's price target to $38.00 from $30.00, reiterating a Buy rating, and Needham increased its price target to $33 from $29, maintaining a Buy rating. These adjustments follow Credo's announcement of a top-line beat and raised expectations, driven by accelerating Application-Specific Integrated Circuit (ASIC) revenue from multiple hyperscaler customers.
Credo Technology also reported robust Q1 2025 results, with revenues reaching $59.7 million and a non-GAAP gross margin of 62.9%, marking a substantial year-over-year revenue increase of 70%. This strong performance was primarily driven by expanding AI deployments. These recent developments highlight the company's ongoing operations and market strategy.
InvestingPro Insights
The recent share sale by Credo Technology Group Holding Ltd's CTO comes at a time when the company's stock is trading near its 52-week high, as indicated by InvestingPro data. This aligns with the strong performance of CRDO shares, which have seen a remarkable 169.83% total return over the past year.
Despite the insider sale, InvestingPro Tips suggest that Credo's financial outlook remains positive. Analysts anticipate sales growth in the current year, and the company is expected to turn profitable. This optimism is reflected in the stock's high revenue valuation multiple, indicating investor confidence in Credo's growth prospects.
Credo's impressive gross profit margins, standing at 62.47% for the last twelve months as of Q1 2025, underscore the company's operational efficiency. This strength is particularly noteworthy in the competitive technology sector.
It's worth noting that while the stock has shown volatility, it has also demonstrated strong returns over various time frames. The 133.24% price total return over the past six months is particularly striking, suggesting robust market enthusiasm for Credo's potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Credo Technology Group Holding Ltd, providing a deeper understanding of the company's financial health and market position.
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