Cheng Chi Fung, Chief Technology Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), recently sold a significant portion of his holdings in the company. According to an SEC filing, Mr. Cheng sold a total of 55,000 ordinary shares across three transactions on October 21. These sales were executed at prices ranging from $37.79 to $39.60 per share, amounting to a total transaction value of approximately $2.16 million.
The shares were sold through a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust, which Mr. Cheng and his spouse oversee as trustees. Following these transactions, Mr. Cheng retains ownership of 8,838,602 shares indirectly through the trust, as well as 129,471 shares directly.
In other recent news, Credo Technology Group Holding Ltd has seen significant developments. The company's 2024 Annual General Meeting resulted in the election of three Class III directors and the approval of an executive compensation package. The shareholders also endorsed an amended and restated employee stock purchase plan and ratified Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending in 2025.
Credo Technology has unveiled its 800G ZeroFlap family of HiWire Active Electrical Cables designed for AI backend networks. The cables are expected to improve cluster reliability, crucial for supercomputers with extensive GPU arrays. Additionally, the company 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%.
Analyst firms TD Cowen, Craig-Hallum, and Needham have maintained a Buy rating for Credo Technology. TD Cowen set a price target of $40, Craig-Hallum raised the price target to $38, and Needham increased it to $33. These firms anticipate a revenue inflection in the second half of fiscal year 2025, driven by accelerating ASIC revenue from multiple hyperscaler customers.
InvestingPro Insights
Credo Technology Group Holding Ltd (NASDAQ:CRDO) has been experiencing significant momentum in the market, as evidenced by the recent insider sale and the company's financial metrics. According to InvestingPro data, CRDO's stock has shown impressive returns, with a 172.85% price total return over the past year and a substantial 125.7% return over the last six months. This strong performance aligns with the timing of the CTO's decision to sell a portion of his holdings.
The company's financial health appears robust, with InvestingPro Tips highlighting that CRDO operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This financial stability may have contributed to investor confidence and the stock's recent performance.
However, investors should note that CRDO is trading near its 52-week high, with the current price at 95.44% of its 52-week high. An InvestingPro Tip also suggests that the stock's RSI indicates it may be in overbought territory, which could be a factor in the CTO's decision to sell at this time.
Despite not being profitable over the last twelve months, analysts anticipate sales growth and expect the company to become profitable this year. This positive outlook is reflected in the impressive gross profit margin of 62.47% for the last twelve months as of Q1 2023, showcasing the company's potential for future earnings growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for CRDO, providing a deeper understanding of the company's financial position and market dynamics.
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