Credo Technology director sells shares worth $5.64 million

SAN JOSE, CA—Credo Technology Group Holding Ltd (NASDAQ:CRDO), whose stock has surged over 160% in the past year and currently trades at $71.09 with a market capitalization of $12.39 billion, saw Director Tan Lip Bu sell a significant portion of his holdings in the company, according to a recent SEC filing. InvestingPro analysis indicates the stock is currently trading above its Fair Value. On June 5, Tan sold a total of 75,000 ordinary shares, with prices ranging from $75.2024 to $76.01 per share. The total value of the transaction amounted to approximately $5.64 million.

Following these sales, Tan holds 888,725 shares indirectly through Walden Technology Ventures Investments II, L.P. Additionally, Tan holds 133,583 shares indirectly through the Lip-Bu Tan and Ysa Loo Trust and 39,736 shares through A&E Investment LLC. Directly, he owns 53,574 shares.

Tan’s involvement in these transactions highlights his role as a significant stakeholder in Credo Technology, with various holdings under different trusts and investment entities.

In other recent news, Credo Technology Group Holding Ltd. has seen several positive developments. The company reported a 25.9% increase in quarterly revenue, surpassing previous estimates by 6.3%, with non-GAAP earnings per share reaching $0.35, exceeding expectations by $0.08. Credo’s revenue guidance for the upcoming quarter suggests an 11.7% growth, indicating strong performance. Analysts from Needham, TD Cowen, and Mizuho (NYSE:MFG) have raised their price targets for Credo Technology, with Needham and TD Cowen setting it at $85 and Mizuho at $81, all maintaining a Buy or Outperform rating.

Credo’s fiscal year 2026 revenue is projected to exceed $800 million, marking an 85% year-over-year increase, supported by growth in its Optical and Active Electrical Cable (AEC) technologies. The company is also expanding its customer base, with two additional hyperscalers expected to ramp up in mid and late FY26. Analysts have noted the company’s compelling valuation, with Noble Capital highlighting that Credo’s stock trades at a lower enterprise value compared to its industry peers. Credo has also achieved a significant milestone with an 800G optical DSP win at a hyperscaler, projecting revenue from its optical division to double in FY26.

Additionally, Credo’s management expects its gross margin to remain at the high end of its long-term goal of 63% to 65%, further supporting the company’s positive outlook.

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