Form 4: Credo Technology Group's CTO, Chi Fung Cheng, Reports Share Sales and Tax Withholding
SEC Form 4 Filing
Chi Fung Cheng, CTO of Credo Technology Group Holding Ltd, reported the sale of 55,000 ordinary shares and shares withheld for tax obligations.
Summary
- Chi Fung Cheng, the Chief Technology Officer of Credo Technology Group Holding Ltd, filed a Form 4 detailing changes in beneficial ownership.
- On May 31, 2024, 1,973 ordinary shares were withheld by the issuer to cover tax obligations related to the vesting and settlement of RSUs at a price of $26.07.
- On June 3, 2024, Cheng sold 50,000 ordinary shares at a weighted average price of $25.0995, with individual trades ranging from $24.45 to $25.44.
- An additional 5,000 ordinary shares were sold on June 3, 2024, at a weighted average price of $25.6778, with individual trades ranging from $25.45 to $25.89.
- Following these transactions, Cheng directly owns 136,851 ordinary shares.
- Cheng also indirectly owns 9,608,602 ordinary shares through the Cheng Huang Family Trust.
- The sales were executed under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 7, 2023.
Sentiment
Score: 5
Explanation: The document is a routine regulatory filing detailing share transactions by an insider. It doesn't inherently convey positive or negative sentiment.
Industry Context
Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.
Comparison to Industry Standards
- Similar filings are common among executives at publicly traded companies like Marvell, Broadcom, and Nvidia, as they routinely manage their equity holdings.
- The use of a 10b5-1 trading plan is a standard practice to avoid accusations of insider trading, aligning with practices seen at companies like AMD and Intel.
Stakeholder Impact
- The share sales by the CTO may have a minor impact on shareholder sentiment, but the use of a pre-arranged trading plan mitigates concerns about insider trading.
Key Dates
| Date | Description |
|---|---|
| 09/07/2023 | Date the Cheng Huang Family Trust adopted the Rule 10b5-1 trading plan |
| 05/31/2024 | Date of tax withholding for 1,973 ordinary shares |
| 06/03/2024 | Date of sale of 55,000 ordinary shares |
| 06/04/2024 | Date of signature on the Form 4 filing |
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