Form 4: Credo CTO Sells $9M in Shares via Pre-Arranged Plan

Credo Technology Group's CTO, Cheng Chi Fung, sold 55,000 ordinary shares for approximately $9 million through a pre-arranged Rule 10b5-1 trading plan.

Summary

• Cheng Chi Fung, Chief Technology Officer and Director of Credo Technology Group Holding Ltd (CRDO), reported the sale of ordinary shares.
• The transactions occurred on September 15, 2025, and were executed under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 6, 2024.
• A total of 55,000 ordinary shares were disposed of across eight separate transactions.
• The weighted average sale prices for these transactions ranged from $161.078 to $167.5925 per share.
• The total value of the shares sold amounts to approximately $9,019,625.45.
• Following these transactions, Cheng Chi Fung, through the Cheng Huang Family Trust, beneficially owns 6,998,961 ordinary shares.
• The shares are indirectly held by the Cheng Huang Family Trust, where the reporting person and spouse are trustees, and they, along with their children, are beneficiaries.

Sentiment

Score: 5

Explanation: The filing reports a pre-planned insider sale of shares by the CTO, which is a neutral event as it was scheduled in advance, but still represents a reduction in insider holdings.

Negatives

• The sale represents a reduction in insider ownership, which can sometimes be perceived negatively by investors, although mitigated by the pre-arranged nature of the 10b5-1 plan.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This filing is an insider transaction report and does not provide information related to broader industry trends or competitor analysis.

Related Party Transactions

• The reported sales were made by the Cheng Huang Family Trust, of which the reporting person (Cheng Chi Fung) and his spouse are trustees, and they, along with their children, are beneficiaries. This constitutes a related party transaction.

Stakeholder Impact

• Shareholders may interpret the insider sale differently; however, the execution under a Rule 10b5-1 plan typically mitigates concerns about the timing of the sale relative to material non-public information.

Key Dates

Recommendation

The reported transactions are sales of shares by a key executive under a pre-arranged Rule 10b5-1 trading plan. Such plans are typically set up in advance to allow insiders to sell shares without concerns about material non-public information. While it represents a reduction in insider ownership, it does not inherently signal a negative outlook for the company's future performance, thus a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Credo Technology Group, CRDO, insider trading, Form 4, stock sale, CTO, Cheng Chi Fung, 10b5-1 plan