Form 4: Credo Technology Group's CTO, Chi Fung Cheng, Sells Shares Under 10b5-1 Trading Plan

Chi Fung Cheng, Chief Technology Officer of Credo Technology Group Holding Ltd, sold ordinary shares totaling approximately $2.4 million under a pre-arranged 10b5-1 trading plan.

Summary

• Chi Fung Cheng, the Chief Technology Officer of Credo Technology Group Holding Ltd, executed multiple sales of ordinary shares on October 21, 2024.
• The sales were conducted under a Rule 10b5-1 trading plan adopted by the Cheng Huang Family Trust on September 7, 2023.
• A total of 54,999 shares were sold in three separate transactions at weighted average prices of $37.7862, $38.7544, and $39.5992.
• The total value of shares sold is approximately $2.4 million.
• Following the transactions, Cheng indirectly owns 8,838,602 ordinary shares through the Cheng Huang Family Trust, where he and his spouse are trustees and beneficiaries.
• Cheng disclaims beneficial ownership of these shares except to the extent of his and his spouse's pecuniary interest.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports transactions under a pre-existing trading plan. It doesn't inherently indicate positive or negative sentiment towards the company's prospects.

Industry Context

Sales by company insiders are a common occurrence and are often pre-planned through Rule 10b5-1 trading plans to avoid accusations of trading on non-public information. The market typically views these sales in the context of the overall trading volume and the insider's remaining holdings.

Stakeholder Impact

• The share sales may have a minor impact on shareholders due to the increased supply of shares in the market.
• The impact is likely to be minimal given the relatively small number of shares sold compared to the total outstanding shares and the pre-planned nature of the transactions.

Key Dates