Anyone interested in Credo Technology Group Holding Ltd (NASDAQ:CRDO) should probably be aware that the President, William Brennan, recently divested US$240k worth of shares in the company, at an average price of US$15.97 each. However, the silver lining is that the sale only reduced their total holding by 0.4%, so we're hesitant to read anything much into it, on its own.
View our latest analysis for Credo Technology Group Holding
The Last 12 Months Of Insider Transactions At Credo Technology Group Holding
Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Lip-Bu Tan, for US$753k worth of shares, at about US$15.07 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$15.72. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 20% of Lip-Bu Tan's holding.
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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Credo Technology Group Holding Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Credo Technology Group Holding insiders own about US$525m worth of shares (which is 22% of the company). 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 haven't bought Credo Technology Group Holding stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Credo Technology Group Holding. Case in point: We've spotted 2 warning signs for Credo Technology Group Holding you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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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.