SAN JOSE, Calif.—Cheng Chi Fung, Chief Technology Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), recently executed a series of stock sales, according to a filing with the Securities and Exchange Commission. On October 11, Cheng sold a total of 54,000 ordinary shares, generating approximately $2.1 million. The sales were conducted at prices ranging from $37.53 to $38.86 per share.
These transactions were carried out under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust, of which Cheng and his spouse are trustees. Following these sales, Cheng holds 8,893,602 shares indirectly through the family trust.
Credo Technology Group, a player in the semiconductor industry, continues to be closely watched by investors and analysts, with such insider transactions often drawing significant attention.
In other recent news, Credo Technology Group Holding Ltd has reported a substantial year-over-year revenue increase of 70%, reaching $59.7 million, driven primarily by expanding AI deployments. The company's non-GAAP gross margin stood at 62.9%. Credo also announced the launch of its 800G ZeroFlap family of HiWire Active Electrical Cables, designed to enhance the reliability and signal integrity of AI backend networks. Analysts from TD (TSX:TD) Cowen, Craig-Hallum, and Needham have all maintained a Buy rating for Credo Technology, with respective price targets set at $40, $38, and $33.
These recent developments include Credo's plans to enter the 64 gig PAM4 PCIe Gen 6 market later this year, capitalizing on the growing demand for higher bandwidth driven by AI applications. The company's gross margins have shown a strong quarter-over-quarter increase, and shipments of Optical Digital Signal Processors are projected to be robust in fiscal year 2025.
These advancements in Credo Technology's operations and market strategy reflect the company's commitment to innovation and growth. The company continues to leverage recent technological advances to meet the increasing demand for higher bandwidth and energy efficiency in data infrastructure.
InvestingPro Insights
Credo Technology Group Holding Ltd (NASDAQ:CRDO) has been making waves in the semiconductor industry, and recent InvestingPro data sheds light on the company's financial performance and market position.
The company's revenue growth is particularly noteworthy, with a 70.15% increase in quarterly revenue as of Q1 2025. This robust growth aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. Such strong revenue performance may explain the recent insider stock sales, as executives often capitalize on positive company momentum.
Another relevant InvestingPro Tip highlights Credo's impressive gross profit margins. Indeed, the data shows a gross profit margin of 62.47% for the last twelve months as of Q1 2025, underscoring the company's efficiency in manufacturing and its potential for profitability.
The stock's recent performance has been remarkable, with a 96.24% price total return over the past six months. This aligns with another InvestingPro Tip noting a significant return over the last week, suggesting sustained investor confidence in Credo's prospects.
It's worth noting that InvestingPro offers 17 additional tips for Credo Technology Group, providing investors with a comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable when considering the context of insider transactions like those recently executed by the CTO.
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