Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported that its Chief Technology Officer, Cheng Chi Fung, sold 55,000 shares of company stock on May 1, 2024. The total value of the shares sold amounted to approximately $957,621, with the transactions carried out at prices ranging from $17.15 to $17.92. The weighted average sale price was reported at $17.4113 per share.
The sale was conducted in accordance with a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 7, 2023. Rule 10b5-1 plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information. This enables insiders to systematically sell shares over time, providing a defense against potential claims of insider trading.
Following the transaction, the Cheng Huang Family Trust, of which Cheng Chi Fung and his spouse are trustees, continues to hold a significant number of shares. The trust owns 9,773,602 ordinary shares, and Cheng Chi Fung, alongside his spouse, maintains a pecuniary interest in these holdings. It is noted that Cheng disclaims beneficial ownership of these shares except to the extent of his and his spouse's financial interest.
The recent filings also show that there are 138,824 ordinary shares held directly by Cheng Chi Fung. These transactions provide a glimpse into the trading activities of Credo Technology's executives and can often be of interest to investors monitoring insider behavior. The company, specialized in semiconductors and related devices, is incorporated in Grand Cayman and has its business address in San Jose, California.
Investors and the market often keep a close eye on insider transactions as they can provide valuable insights into executives' perspectives on the company's current valuation and future prospects.
InvestingPro Insights
In light of the recent insider trading activity at Credo Technology Group Holding Ltd (NASDAQ:CRDO), investors might find it useful to consider some key financial metrics and analyst insights from InvestingPro. As of the last twelve months leading up to Q3 2024, CRDO holds a market capitalization of $2.82 billion, which can provide a sense of the company's size and market value. Despite not paying dividends, which might be a consideration for income-focused investors, CRDO's stock has delivered a high return of 131.28% over the past year, highlighting the potential growth the stock has experienced.
Moreover, while the company has been grappling with profitability challenges, reflected by a negative P/E ratio of -82.93, analysts predict that CRDO will turn profitable this year. This aligns with an InvestingPro Tip highlighting the expected net income growth. Additionally, another InvestingPro Tip points out that CRDO holds more cash than debt on its balance sheet, which may be an indicator of the company's financial stability and ability to fund its operations without relying heavily on external financing.
For investors interested in a deeper analysis of Credo Technology Group Holding Ltd, there are 9 additional InvestingPro Tips available, which could provide a more comprehensive understanding of the company's financial health and future outlook. To explore these insights further, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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