Credo Technology Group Holding Ltd (NASDAQ:CRDO) director Tan Lip Bu has sold a significant portion of his holdings in the company, according to a recent SEC filing. Over a series of transactions on October 11, 14, and 15, Tan Lip Bu sold a total of 150,000 ordinary shares, yielding approximately $5.7 million. The shares were sold at prices ranging from $37.29 to $39.06 per share. Following these transactions, Tan Lip Bu holds 1,713,725 shares indirectly through Walden Technology Ventures Investments II, L.P., as well as additional holdings in other entities.
In other recent news, Credo Technology Group Holding Ltd. announced the launch of its 800G ZeroFlap HiWire Active Electrical Cables, designed to enhance reliability and signal integrity in artificial intelligence backend networks. The cables are expected to improve cluster reliability, which is critical for supercomputers with extensive GPU arrays. Analysts from TD Cowen, Craig-Hallum, and Needham have all maintained a Buy rating for Credo Technology, reflecting optimism about the company's potential for diversified revenue streams.
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. The company plans 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 highlight advancements in Credo Technology's operations and market strategy. The company's focus on AI and connectivity, as well as its anticipated entry into new markets, signals a promising future for its operations.
InvestingPro Insights
The recent insider selling by Credo Technology Group Holding Ltd's director Tan Lip Bu comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, CRDO has delivered a strong return of 145.18% over the last year, with a significant 96.24% price increase in the past six months alone. This impressive rally might explain the director's decision to capitalize on the stock's upward momentum.
Despite the insider selling, there are several positive indicators for Credo Technology. InvestingPro Tips highlight that analysts anticipate sales growth in the current year, and the company boasts impressive gross profit margins. The latest data shows a gross profit margin of 62.47% for the last twelve months as of Q1 2025, underscoring the company's ability to maintain profitability in its core operations.
It's worth noting that while CRDO is not currently profitable over the last twelve months, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will turn profitable. This positive outlook aligns with the company's strong revenue growth, which stood at 25.9% for the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for CRDO, providing a deeper understanding of the company's financial health and market position.
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