Trade Alert: Chief Legal Officer & Secretary Of Credo Technology Group Holding James Laufman Has Sold Stock
We wouldn't blame Credo Technology Group Holding Ltd (NASDAQ:CRDO) shareholders if they were a little worried about the fact that James Laufman, the Chief Legal Officer & Secretary recently netted about US$1.0m selling shares at an average price of US$205. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Credo Technology Group Holding
In the last twelve months, the biggest single sale by an insider was when the President, William Brennan, sold US$12m worth of shares at a price of US$233 per share. That means that an insider was selling shares at around the current price of US$221. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Credo Technology Group Holding insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Credo Technology Group Holding
I will like Credo Technology Group Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Credo Technology Group Holding insiders own 8.9% of the company, worth about US$3.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Credo Technology Group Holding Insiders?
Insiders sold Credo Technology Group Holding shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Credo Technology Group Holding is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Credo Technology Group Holding.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.