Credo Technology Group Holding Ltd (NASDAQ:CRDO) President and Chief Executive Officer, William Joseph Brennan, has sold a portion of his shares in the company, according to a recent SEC filing. Brennan offloaded a total of 30,000 ordinary shares over two days, with the transactions generating over $660,000 for the executive.
The sales took place on April 4th and 5th, with prices ranging from $21.7161 to $22.3139 per share. The weighted average sale price of the shares was in the respective range on each day, reflecting the varying prices at which the stock was traded. These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which Brennan had adopted on March 9, 2023.
In addition to the sales, Brennan also acquired 250,000 restricted stock units (RSUs) at no cost, which will vest starting January 2, 2025, with further vesting every three months thereafter, contingent on his continued service with the company.
Furthermore, the SEC filing disclosed that 6,149 shares were withheld by Credo Technology to satisfy tax withholding obligations in connection with the vesting of RSUs. This transaction, which took place on April 5th, was valued at $21.36 per share, totaling approximately $131,342.
Following these transactions, Brennan's direct ownership in Credo Technology stands at 678,279 ordinary shares, with an additional 3,007,500 shares held indirectly through The Brennan Family Trust. The trust's holdings reflect Brennan's disclaimer of beneficial ownership except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's stock value and future prospects. The recent activity by Credo Technology's CEO will likely be of interest to current and potential shareholders as they assess the company's performance and leadership confidence.
InvestingPro Insights
As Credo Technology Group Holding Ltd (NASDAQ:CRDO) navigates the market, recent financial metrics and insights shed light on the company's position. The executive transactions have stirred interest, and here's what the latest data from InvestingPro tells us:
Credo Technology boasts a market capitalization of $3.49 billion, indicating its significant presence in the sector. Despite a challenging period, the company has managed to maintain a notable gross profit margin of 59.69% over the last twelve months as of Q3 2024. This demonstrates Credo's ability to retain a majority of its revenue after accounting for the cost of goods sold, which is a positive sign for operational efficiency.
However, it's worth noting that the company has experienced a revenue decline of 13.37% during the same period, which could be a point of concern for investors looking at top-line growth. The stock's volatility is also reflected in its price movements, with a 137.07% return over the last year, highlighting the potential risks and rewards associated with investing in Credo Technology.
For those considering a deeper dive into Credo Technology's financial health, InvestingPro offers additional insights. There are currently 9 more InvestingPro Tips available, which include the company's cash position relative to its debt and analysts' profitability predictions for the year. These tips could be crucial for investors making informed decisions about the company's future.
Interested in unlocking these insights? Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This could be your gateway to a more comprehensive understanding of Credo Technology's financial landscape and the potential implications of the CEO's recent stock transactions.
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