Insider Transaction: BU LIP TAN Sells $5.64M Worth Of Credo Technology Group Shares

Making a noteworthy insider sell on June 9, BU LIP TAN, Director at Credo Technology Group CRDO, is reported in the latest SEC filing.

What Happened: TAN's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 75,000 shares of Credo Technology Group. The total transaction value is $5,640,260.

At Tuesday morning, Credo Technology Group shares are down by 4.7%, trading at $67.75.

Unveiling the Story Behind Credo Technology Group

Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. It has a geographic presence in Hong Kong, the United States, Mainland China, Taiwan, and the Rest of the World.

Credo Technology Group: Delving into Financials

Revenue Growth: Credo Technology Group's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 25.94%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 67.16%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Credo Technology Group's EPS reflects a decline, falling below the industry average with a current EPS of 0.21.

Debt Management: With a below-average debt-to-equity ratio of 0.02, Credo Technology Group adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 245.14 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 29.49 is above industry norms, reflecting an elevated valuation for Credo Technology Group's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 306.67, Credo Technology Group demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Credo Technology Group's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.