Credo Technology Co-Founder and CTO Sells Nearly 4,000 Shares Worth Over $600,000 Amid a 27% One-Year Return
Key Points
The direct sale of 3,790 shares realized $644,300 at a weighted average price of $170.00 per share.
The transaction size represented 3% of the insider's direct holdings held before the filing.
The executive maintains a substantial indirect position of ~5.8 million shares through the Cheng Huang Family Trust.
The disposition occurred as the company equity returned 27% over the 12 months ending September 4, 2026.
Chi Fung "Lawrence" Cheng, co-founder and Chief Technology Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), sold 3,790 shares of ordinary stock on September 4, 2026, according to a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $644,300 |
| Shares sold (directly held) | 3,790 |
| Post-transaction shares (total) | 5,908,965 |
| Post-transaction shares (directly held) | 136,568 |
| Post-transaction shares (indirectly held) | 5,772,397 |
| Post-transaction value | $1.01 billion |
Transaction value based on SEC Form 4 weighted average sale price ($170.00); post-transaction value based on September 4, 2026 market close ($170.57).
Key questions
- What is the nature of the remaining indirect stake?
The vast majority of the insider's equity is held through the Cheng Huang Family Trust, where Cheng and his spouse serve as trustees. This trust, which includes their children as beneficiaries, holds ~5.8 million shares valued at approximately $984.6 million as of the September 4, 2026 market close. - How did this transaction affect the total equity position?
The sale of 3,790 shares had a minimal impact on the total equity exposure, representing 0.06% of the combined direct and indirect stake held prior to the filing. Following the transaction, the insider continues to hold 3% of the company's outstanding shares. - What is the scale of the company's current operations?
Credo Technology Group Holding Ltd continues to expand its reach in the semiconductor industry, specializing in high-speed connectivity solutions for optical and electrical Ethernet. The company reported trailing twelve-month revenue of $1.6 billion and a net income of $538.3 million as of the September 9, 2026 market close.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-09) | $167.92 |
| Market Capitalization | $31.8 billion |
| Revenue (TTM) | $1.6 billion |
| Net Income (TTM) | $538.3 million |
Company Snapshot
- Credo Technology Group specializes in advanced high-speed connectivity solutions, offering integrated circuits (ICs), active electrical cables (AECs), and SerDes chiplets for optical and electrical Ethernet applications across global markets including the United States, Mexico, Mainland China, and Hong Kong.
- The company generates revenue through the design, development, and commercialization of proprietary semiconductor solutions that enable high-speed data transmission, leveraging its serializer/deserializer technology platform to serve enterprise and infrastructure customers.
- Credo's primary customers include data center operators, telecommunications equipment manufacturers, and cloud service providers requiring advanced connectivity solutions for next-generation network infrastructure.
Credo Technology Group is a semiconductor specialist with a $31.8 billion market cap, demonstrating significant scale in the high-speed connectivity market. The company's proprietary SerDes chiplet technology and integrated circuit offerings position it as a critical enabler of optical and electrical Ethernet infrastructure, capturing value from the secular growth in data center and cloud computing demand. Credo exhibits strong profitability metrics and operational leverage in a strategically important semiconductor segment.
What this transaction means for investors
CTO Chi Fung "Lawrence" Cheng's Sept. 4 sale of 3,790 directly held shares in the business he co-founded was a discretionary transaction. It took place on the heels of Credo Technology Group's Sept. 1 earnings announcement for the company's fiscal first quarter ended Aug. 1.
Although this was a discretionary sale, it represented a small percentage of Cheng's overall holdings. Post-transaction, he retains nearly six million shares worth about $1 billion. This ensures his continued alignment with shareholder interests.
While Cheng sold for $170 per share, the stock was above $200 before the earnings report was released. Credo Technology shares fell because of Wall Street's disappointment over the earnings results.
The company reported fiscal Q1 sales growth of 115% year over year to $479 million, thanks to the artificial intelligence boom. However, this sum was only a 10% increase over the prior quarter while costs rose, causing a quarter-over-quarter decline in net income. With the stock's elevated valuation, Credo needed to deliver flawless performance, and by falling short, its stock price dropped.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.