Credo Technology Group Holding Ltd's (NASDAQ:CRDO) Chief Technology Officer, Cheng Chi Fung, has sold a notable amount of company stock, according to a recent filing with the Securities and Exchange Commission. On September 23, 2024, Cheng sold a total of 55,000 ordinary shares at prices ranging from $29.67 to $30.25, culminating in a total transaction value exceeding $1.6 million.
The sales were conducted under a prearranged 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information. This plan had been adopted by the Cheng Huang Family Trust on September 7, 2023. The trust, for which Cheng and his spouse serve as trustees, holds the shares, and while Cheng disclaims beneficial ownership of these shares, he acknowledges his and his spouse's pecuniary interest in them.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's future. Although a sale of stock by an insider may raise questions about the insider's view of the company's prospects, it is also common for executives to sell shares for personal financial management reasons, such as diversification or liquidity.
After the transactions, the Cheng Huang Family Trust still holds a substantial number of Credo Technology ordinary shares, indicating a continued alignment with the company's performance. Credo Technology, known for its semiconductor and related devices manufacturing, remains a key player in the tech industry.
Investors and shareholders of Credo Technology can request detailed information about the specific prices and number of shares sold in each transaction from Cheng upon request, as he has undertaken to provide full information if asked by the SEC staff, the issuer, or a security holder of the issuer.
In other recent news, Credo Technology Group Holding Ltd. has been the subject of significant developments. The company reported a robust start to fiscal 2025, with Q1 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 largely due to expanding AI deployments.
Analyst firms TD Cowen, Craig-Hallum, and Needham have expressed confidence in Credo's future prospects. TD Cowen reaffirmed its Buy rating with a price target of $40.00, while Craig-Hallum and Needham raised their price targets to $38.00 and $33.00 respectively. The firms highlighted the company's diverse product portfolio, specifically the contribution of Application-Specific Integrated Circuits (ASICs) to total revenue, and anticipated a revenue inflection in the second half of fiscal year 2025.
Credo Technology is also planning to enter the 64 gig PAM4 PCIe Gen 6 market later this year, aiming to capitalize on the growing demand for higher bandwidth driven by AI applications. These recent developments underscore the company's potential for diversified revenue streams and its strategic focus on AI and connectivity themes.
InvestingPro Insights
Credo Technology Group Holding Ltd's (NASDAQ:CRDO) recent insider stock sale coincides with several positive indicators for the company's financial health and growth prospects. According to InvestingPro Tips, Credo Technology holds more cash than debt on its balance sheet, which is a strong sign of financial stability. Additionally, analysts expect both net income and sales to grow this year, reflecting a positive outlook for the company's profitability and market presence.
From a market performance perspective, InvestingPro Data reveals that Credo Technology has a market capitalization of $4.95 billion, underscoring its substantial presence in the semiconductor industry. Despite a negative P/E ratio of -147.94, indicating that the company is currently not profitable, the impressive revenue growth of 25.9% over the last twelve months as of Q1 2023 suggests that the company is expanding its revenue streams effectively. The gross profit margin stands at a robust 62.47%, highlighting the company's ability to maintain profitability on its products and services.
Investors may also be interested in the stock's recent performance, as Credo Technology has seen a significant return over the last week, with a price total return of 10.46%. This could reflect investor confidence in the company's short-term prospects. For those considering long-term investments, it's worth noting that InvestingPro Tips include additional insights on the company's performance, with 16 more tips available for those who want a deeper analysis of Credo Technology's financial metrics and market behavior.
For more detailed InvestingPro Tips on Credo Technology, interested investors can visit the dedicated InvestingPro page at: https://www.investing.com/pro/CRDO
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