Credo Technology’s CTO Cheng Chi Fung sells $2.6 million in stock

Published 19/03/2025, 22:10
Credo Technology’s CTO Cheng Chi Fung sells $2.6 million in stock

SAN JOSE, CA—Cheng Chi Fung, the Chief Technology Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), recently sold a significant portion of company stock, according to a recent SEC filing. The transactions, carried out on March 17, 2025, were part of a pre-arranged trading plan under Rule 10b5-1. The sale comes as the stock trades near $47, having delivered an impressive 122% return over the past year, according to InvestingPro data.

Fung sold a total of 55,000 ordinary shares, with the stock prices ranging from $46.84 to $48.29 per share. The total value of these transactions amounted to approximately $2.6 million. Following these sales, Fung maintains ownership of over 8.1 million shares through the Cheng Huang Family Trust. The company, currently valued at $7.5 billion, maintains strong fundamentals with a healthy current ratio of 7.67 and operates with minimal debt.

These sales were executed in multiple trades, with the specific prices and number of shares available upon request from the SEC, the issuer, or a security holder of Credo Technology. The transactions reflect Fung’s ongoing management of his holdings in the semiconductor company, which continues to be a significant player in the industry. With eight analysts recently revising earnings estimates upward and an impressive gross profit margin of 64%, detailed analysis of CRDO’s potential is available through InvestingPro’s comprehensive research reports.

In other recent news, Credo Technology Group Holding Ltd. reported strong financial results for the third quarter of fiscal year 2025, with revenue reaching $135 million, a 154% year-over-year increase. The company’s earnings per share also exceeded expectations, coming in at $0.25 compared to the forecasted $0.18. Stifel analysts maintained a Buy rating for Credo, with a price target of $85, praising the company’s ability to manage high-volume orders and maintain a robust supply chain. The firm’s revenue forecast for the April quarter is set at a midpoint of $160 million, representing an 18.5% sequential growth.

Cantor Fitzgerald continues to express optimism for NVIDIA Corporation (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) Inc, and Marvell (NASDAQ:MRVL) Technology, Inc., citing sustained AI spending and product cycles as key factors. Credo’s growth trajectory is supported by its Advanced Electronic Components program, with expectations of more than 50% year-over-year revenue growth in fiscal year 2026. Stifel’s analysis suggests that Credo’s operational strength aligns with its long-term growth plans, as the company anticipates no supply issues that could hinder its expansion.

Furthermore, Credo’s strategic initiatives include expanding into AI connectivity and PCIe retimers markets, with a projected revenue growth of over 50% from FY2025 to FY2026. The company’s control over its supply chain from chip production to finished cables is seen as a significant advantage. These developments reflect a positive outlook for Credo as it continues to outperform market expectations and diversify its customer base.

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