Credo technology COO Lam Yat Tung sells shares worth $12.7m

Published 20/02/2025, 22:14
Updated 20/02/2025, 22:16
Credo technology COO Lam Yat Tung sells shares worth $12.7m

San Jose, CA – Lam Yat Tung, the Chief Operating Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), recently sold a significant portion of the company’s ordinary shares. The transactions, which took place on February 18, 2025, were part of a pre-established Rule 10b5-1 trading plan. The sale comes as CRDO shares have delivered an impressive 235% return over the past year, with the company now commanding a market capitalization of $11.82 billion.

Lam Yat Tung executed multiple sales totaling 169,000 shares, with prices ranging from $72.8704 to $76.4784 per share. The total value of these transactions amounted to approximately $12.7 million. Following these sales, Lam Yat Tung now holds 1,100,000 shares indirectly through Zhan BVI Co Ltd, with an additional 2,825,621 shares held directly. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, CRDO currently trades above its Fair Value, with analysts maintaining a strong buy consensus.

These transactions were executed in multiple trades, and the prices reported reflect weighted average sale prices. Lam Yat Tung has undertaken to provide full information regarding the number of shares and prices upon request to relevant parties. Looking ahead, analysts expect CRDO to achieve profitability this year, with revenue growth forecasts exceeding 100% and strong gross profit margins of 63%.

In other recent news, Credo Technology Group Holding Ltd. reported significant financial achievements that have caught the attention of various analyst firms. The company announced a 64% year-over-year increase in its second-quarter revenue, reaching $72 million, driven by high demand for its connectivity solutions. Following these robust earnings, Needham revised its fiscal year 2025 revenue estimates for Credo from $316 million to $385 million, while maintaining a Buy rating and increasing the price target to $70. Similarly, Stifel raised its price target for Credo to $75, citing strong October quarter results and a promising outlook for the January quarter, with expected revenue growth of 66.6% sequentially.

TD Cowen also expressed confidence in Credo’s future, raising the price target from $45 to $75 and retaining a Buy rating. The firm emphasized Credo’s guidance for the upcoming quarter and fiscal year 2026, which suggests continued success in AI networking capabilities. Meanwhile, BofA Securities upgraded Credo from Underperform to Buy, increasing the price target to $80, based on a reassessment of Credo’s financial projections and market position. This upgrade was prompted by a strong earnings call that led to a significant revision of estimated earnings per share for fiscal years 2026 and 2027.

Credo’s growth is largely attributed to its Active Electrical Cable (AEC) products, which are playing a crucial role in AI cluster efficiency. The company’s leadership in this market is expected to continue, fueled by its innovative solutions and strong relationships with major customers like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA). Despite the positive outlook, analysts have noted potential risks, including competition from other technology firms and the stock’s sensitivity to market sentiment surrounding AI deployments.

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