Form 4: Credo Technology CTO Sells Shares via 10b5-1 Plan

Credo Technology Group Holding Ltd's CTO, Cheng Chi Fung, reported the sale of 54,990 ordinary shares through a pre-arranged 10b5-1 trading plan.

Summary

• Cheng Chi Fung, Chief Technology Officer and a Director of Credo Technology Group Holding Ltd (CRDO), reported the sale of 54,990 ordinary shares.
• The transactions occurred on December 22, 2025, and were executed under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 6, 2024.
• The sales were conducted at weighted average prices ranging from $149.2021 to $154.9246 per share, with one block sold at $156.00.
• Following these transactions, the Cheng Huang Family Trust beneficially owns 6,503,961 ordinary shares indirectly.
• The reporting person disclaims beneficial ownership except to the extent of his and his spouse's pecuniary interest in the Cheng Huang Family Trust.

Sentiment

Score: 5

Explanation: The filing reports routine insider sales executed under a pre-arranged 10b5-1 plan, which is generally considered neutral as it indicates planned diversification rather than a reaction to new information. However, significant insider selling can sometimes be viewed with slight caution.

Negatives

• Insider selling, even if pre-planned, can sometimes be perceived negatively by the market, potentially signaling a lack of confidence or a desire for diversification by a key executive.

Future Outlook

Not applicable, as this filing is an insider transaction report and does not contain forward-looking statements or guidance from the company.

Management Comments

• The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.

Industry Context

This insider transaction report does not provide information directly related to broader industry trends or competitive landscape. It focuses solely on the personal trading activity of a company executive.

Related Party Transactions

• The reported sales were made by the Cheng Huang Family Trust, of which the Reporting Person and his spouse are trustees and the Reporting Person, his spouse, and their children are beneficiaries. This constitutes a transaction by a related party.

Stakeholder Impact

• Shareholders may view the sale of shares by a key executive with some caution, although the pre-arranged 10b5-1 plan mitigates concerns that the sale is based on new, undisclosed negative information.

Next Steps

• The reporting person has undertaken to provide full information regarding the number of shares and prices of the transactions upon request to the SEC staff, the issuer, or a security holder.

Key Dates

Recommendation

The filing details pre-scheduled insider sales by a key executive through a 10b5-1 plan. While insider selling can sometimes be a cautionary signal, sales under a 10b5-1 plan are typically for personal financial planning and diversification, not a reflection of new negative company information. Therefore, this filing alone does not suggest a change in the fundamental outlook for the company, warranting a 'hold' recommendation.

Keywords

Credo Technology Group Holding Ltd, CRDO, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Cheng Chi Fung, Chief Technology Officer