Credo technology's CTO sells shares worth $1.81 million

Published 08/04/2025, 21:20
Credo technology's CTO sells shares worth $1.81 million

Credo Technology Group Holding Ltd (NASDAQ:CRDO), a technology company currently trading above its InvestingPro Fair Value with a market capitalization of $6.1 billion, saw a notable transaction involving its Chief Technology Officer, Cheng Chi Fung, according to a recent SEC filing. On April 4, Cheng Chi Fung sold a total of 54,000 ordinary shares, with prices ranging from $31.58 to $34.02, amounting to approximately $1.81 million. These transactions were conducted under a Rule 10b5-1 trading plan by the Cheng Huang Family Trust, in which Cheng Chi Fung and his family are beneficiaries. Following these sales, the trust still holds over 7.9 million shares of the company. The transaction comes as the company maintains impressive gross profit margins of nearly 64% and has shown strong revenue growth of 99% over the last twelve months. Additionally, on April 5, 2,031 shares were withheld by the issuer to satisfy tax obligations related to the vesting of restricted stock units, valued at $33.30 per share. For deeper insights into CRDO's valuation metrics and 18 additional exclusive ProTips, consider accessing the comprehensive research available on InvestingPro.

In other recent news, Credo Technology Group Holding Ltd reported impressive financial results for the third quarter of fiscal year 2025, exceeding market expectations. The company achieved an earnings per share (EPS) of $0.25, surpassing the forecast of $0.18, and reported revenue of $135 million, outperforming the anticipated $120.29 million. Stifel analysts maintained their Buy rating and $85.00 price target for Credo Technology, citing the company's strong financial performance and ability to manage high-volume orders. The analysts expressed confidence in Credo's growth trajectory, anticipating more than 50% year-over-year revenue growth in fiscal year 2026.

Additionally, Credo Technology announced significant changes to its board of directors, including the appointment of William J. Brennan as the new chairman. Fariba Danesh was elected as a Class II director, bringing over three decades of experience in the technology sector. The board reshuffle emphasizes the company's focus on experienced leadership to navigate the competitive semiconductor landscape.

Cantor Fitzgerald reaffirmed a positive outlook on semiconductor stocks, including Credo Technology, highlighting the sector's performance and potential catalysts. The firm's analysis noted that the Semiconductor Index fared better than the broader market recently. Credo's control over its supply chain and its strategic focus on AI connectivity and PCIe retimers markets are seen as strengths. Looking forward, Credo projects continued growth with a Q4 revenue forecast between $155 million and $165 million, signaling ongoing expansion.

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