Form 4: Credo Technology Group Holding Ltd: Chief Technology Officer Cheng Chi Fung Sells 55,000 Shares

Credo Technology Group's Chief Technology Officer, Cheng Chi Fung, sold 55,000 ordinary shares at a weighted average price of $27.492, while still indirectly holding a substantial number of shares through the Cheng Huang Family Trust.

Summary

• On June 21, 2024, Cheng Chi Fung, the Chief Technology Officer of Credo Technology Group Holding Ltd, sold 55,000 ordinary shares.
• The sale was executed at a weighted average price of $27.492 per share, with individual transaction prices ranging from $27.04 to $28.03.
• The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 7, 2023.
• Following the transaction, Cheng Chi Fung directly owns 136,851 ordinary shares and indirectly owns 9,498,602 ordinary shares through the Cheng Huang Family Trust.
• Cheng Chi Fung and his spouse are trustees of the Cheng Huang Family Trust, and they, along with their children, are beneficiaries.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it reports a routine transaction under a pre-existing trading plan. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Industry Context

Insider sales are a common occurrence, and the use of a pre-arranged trading plan (Rule 10b5-1) suggests the sale was planned in advance and not based on any specific non-public information. The market will likely interpret this sale in the context of overall company performance and industry trends.

Stakeholder Impact

• The sale of shares by a company officer could be perceived negatively by some shareholders, although the existence of a 10b5-1 plan mitigates this concern.

Key Dates