Form 4: Credo Technology CTO Sells Over 114,000 Shares Through Pre-Arranged Trading Plan

Credo Technology Group Holding Ltd's Chief Technology Officer and Director, Cheng Chi Fung, sold a total of 114,641 ordinary shares in early June 2025 through a pre-arranged Rule 10b5-1 trading plan.

Summary

• Cheng Chi Fung, the Chief Technology Officer and a Director of Credo Technology Group Holding Ltd (CRDO), reported multiple sales of ordinary shares.
• A total of 114,641 ordinary shares were sold across several transactions on June 5, 2025, and June 9, 2025.
• The sales were executed at weighted average prices ranging from $71.3299 to $74.9556 per share.
• These transactions were conducted pursuant to a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 6, 2024.
• Following these transactions, the beneficial ownership of ordinary shares held indirectly by the Cheng Huang Family Trust, of which the reporting person is a trustee and beneficiary, stands at 7,548,961 shares.

Sentiment

Score: 5

Explanation: The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which mitigates the negative perception typically associated with insider selling, indicating the transactions were not based on immediate non-public information. However, the significant volume of shares sold by a key executive could still be viewed with caution by some investors.

Positives

• The sales were conducted under a Rule 10b5-1 trading plan, which indicates the transactions were pre-scheduled and not based on immediate, non-public information, thereby reducing concerns about opportunistic insider selling.

Negatives

• A significant volume of shares (114,641) was sold by a key executive (CTO and Director), which some investors might interpret as a lack of confidence, despite the existence of a 10b5-1 plan.

Risks

• While conducted under a 10b5-1 plan, the sale of a substantial number of shares by a high-ranking insider could potentially lead to negative market sentiment or speculation regarding the company's future prospects.

Future Outlook

This Form 4 filing reports past insider transactions and does not contain forward-looking statements or guidance regarding the company's future outlook.

Management Comments

• The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 6, 2024.

Industry Context

This document is an insider trading report (Form 4) specific to Credo Technology Group Holding Ltd and its Chief Technology Officer. It does not provide information on broader industry trends or competitive landscape, but rather details a specific executive's equity transactions.

Related Party Transactions

• The ordinary shares are held by the Cheng Huang Family Trust, of which the Reporting Person (Cheng Chi Fung) and his spouse are trustees, and the Reporting Person, his spouse, and their children are beneficiaries. The Reporting Person disclaims beneficial ownership except to the extent of his and his spouse's pecuniary interest therein.

Stakeholder Impact

• Shareholders: Insider selling, even if pre-planned, can sometimes influence investor sentiment and potentially lead to questions about management's long-term view of the company, though the 10b5-1 plan provides a mitigating context.

Key Dates

Keywords

Credo Technology Group Holding Ltd, CRDO, Form 4, Insider Selling, Cheng Chi Fung, Chief Technology Officer, Director, 10b5-1 plan, Stock Sales, Beneficial Ownership, Equity Transactions