Credo Technology Group Holding Ltd (NASDAQ:CRDO) has reported a significant sale of shares by its Chief Operating Officer, Lam Yat Tung. According to the latest SEC filing, the executive disposed of a substantial number of ordinary shares in a series of transactions.
The transactions, which took place on March 19 and 20, 2024, resulted in the sale of shares with a total value exceeding $2.6 million. The sales were conducted at prices ranging from $20.0229 to $20.0732. Notably, these transactions were carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted on July 13, 2023.
On the first day, Lam Yat Tung sold 18,755 shares at an average price of $20.0244 and 18,978 shares at an average price of $20.0229. The following day, the COO continued with the sale of 61,245 shares at an average price of $20.0732, and 31,022 shares at an average price of $20.0267. These sales were executed in multiple trades, and the prices reported reflect the weighted average sale price.
The COO's indirect ownership through entities such as Chung BVI Co Ltd and Zhan BVI Co Ltd was specified in the report, with a disclaimer of beneficial ownership of these shares, except to the extent of any pecuniary interest therein.
Investors and followers of Credo Technology Group Holding Ltd will be keeping a close eye on the market's reaction to these transactions. The company, which operates in the semiconductor and related devices industry, has its business address in Grand Cayman and a mailing address in San Jose, California.
The SEC filing was signed by Katherine E. Schuelke, attorney-in-fact, on March 21, 2024.
InvestingPro Insights
In light of the recent share sales by Credo Technology Group Holding Ltd's (NASDAQ:CRDO) COO, Lam Yat Tung, it's particularly insightful to look at the company's financial health and stock performance. Credo Technology, with a market capitalization of $3.38 billion, shows a notable presence in the semiconductor sector. Despite the company's negative P/E ratio of -99.32, which signals investor caution about earnings potential, the InvestingPro Tips suggest a silver lining. Analysts predict that Credo Technology will become profitable this year, which may reassure investors about the company's future prospects.
Another key InvestingPro Tip is the company's volatility in stock price movements, which is corroborated by a 147.37% return over the last year, and a significant six-month price total return of 42.82%. This kind of performance indicates a potentially attractive opportunity for investors with a higher risk tolerance. Moreover, the company holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, factors that contribute to financial stability and may influence investor sentiment positively.
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