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Credo Technology Group Holding Ltd's (NASDAQ:CRDO) Chief Technology Officer, Cheng Chi Fung, has recently sold a significant amount of company stock, according to the latest SEC filings. The transactions, which took place between August 30 and September 3, 2024, involved the sale of 61,000 ordinary shares for a total of approximately $1.76 million.
The sales were executed under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading. The shares sold by Cheng were part of the Cheng Huang Family Trust, indicating that the transactions were planned and not based on any immediate knowledge of company performance.
On September 3, Cheng sold 46,150 shares at a weighted average price of $31.9101, with individual transaction prices ranging from $31.40 to $32.39. Additional sales on the same day included 7,416 shares sold at an average price of $32.6673, with prices varying from $32.40 to $33.17, and 1,434 shares at an average price of $33.6997, with the price per share ranging from $33.54 to $33.87.
Following these transactions, the Cheng Huang Family Trust still holds a substantial number of shares, amounting to over 9 million ordinary shares of Credo Technology Group. It's also worth noting that the CTO disposed of 2,460 shares to satisfy tax withholding obligations in connection with the vesting of Restricted Stock Units (RSUs), at a price of $34.91 per share, totaling $85,878.
Investors and market watchers often look to insider buying and selling as an indicator of a company's prospects. It should be noted, however, that there are many reasons why an insider might sell shares, and such sales do not necessarily signal a lack of confidence in the company.
Credo Technology Group Holding Ltd specializes in semiconductors and related devices, and its stock is publicly traded on the NASDAQ under the ticker symbol CRDO. The company has not made any official statement regarding the recent stock sales by its CTO.
In other recent news, Credo Technology's earnings report, which is expected to provide insights into the company's financial performance, is eagerly awaited. Mizuho Securities has increased its price target for the firm to $35, citing promising growth in AI spending and positive industry indicators. Stifel has also raised its target for Credo Technology to $40, expecting the company to surpass July Quarter estimates with a projected revenue of $59.5 million. TD Cowen has shown similar confidence, upgrading the stock from Hold to Buy and raising its price target to $40 as well.
Credo Technology recently announced record-breaking Q4 revenue of $60.8 million, primarily driven by artificial intelligence applications, marking an 89% increase year-over-year. The company's IP business also saw substantial growth, generating $16.6 million in Q4, a 193% increase year-over-year.
James Laufman has been announced as the new Chief Legal Officer and Secretary, succeeding Katherine E. Schuelke. This change in leadership is one of the recent developments at Credo Technology. These updates reflect the ongoing momentum and strategic positioning of Credo Technology in the industry.
InvestingPro Insights
Credo Technology Group Holding Ltd (NASDAQ:CRDO) has been making waves in the semiconductor industry, and its financial metrics provide a deeper understanding of its market position. With a significant market capitalization of $5.25 billion, CRDO is a notable player in its sector. The company's gross profit margin impresses at 61.89% for the last twelve months as of Q4 2024, showcasing its ability to maintain profitability in its operations.
Investors looking at CRDO's stock performance will find a history of strong returns, with an 88.16% increase over the past year. This robust growth trajectory is further highlighted by a 62.46% year-to-date price total return, underscoring the stock's appeal to investors seeking growth opportunities.
In terms of future prospects, InvestingPro Tips suggest that CRDO is expected to see net income growth this year, with analysts predicting the company will be profitable. This is coupled with an anticipation of sales growth in the current year, which could be a driving force behind the company's positive outlook.
It's also worth noting that CRDO holds more cash than debt on its balance sheet, providing financial flexibility and a cushion for future investments or to weather any potential economic downturns. For those considering investing in CRDO, the company's stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance.
For more in-depth analysis and additional InvestingPro Tips related to CRDO, you can find a total of 17 tips available, offering valuable insights for making informed investment decisions. These tips can be accessed on the InvestingPro platform, providing a comprehensive tool for those looking to deepen their understanding of Credo Technology Group's financial health and market prospects.
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