Monday, July 15, 2024

Have Insiders Sold Credo Technology Group Holding Shares Recently?

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Some Credo Technology Group Holding Ltd (NASDAQ:CRDO) shareholders may be a little concerned to see that the Chairman of the Board, Lip-Bu Tan, recently sold a substantial US$1.4m worth of stock at a price of US$31.93 per share. That’s a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

See our latest analysis for Credo Technology Group Holding

Credo Technology Group Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, William Brennan, for US$8.8m worth of shares, at about US$17.50 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$31.21. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 13% of William Brennan’s stake.

In the last year Credo Technology Group Holding insiders didn’t buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:CRDO Insider Trading Volume July 11th 2024

I will like Credo Technology Group Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Credo Technology Group Holding insiders own 15% of the company, worth about US$763m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Credo Technology Group Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Credo Technology Group Holding that deserve your attention before buying any shares.

Of course Credo Technology Group Holding may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Valuation is complex, but we’re helping make it simple.

Find out whether Credo Technology Group Holding is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we’re helping make it simple.

Find out whether Credo Technology Group Holding is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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