Some Credo Technology Group Holding Ltd (NASDAQ:CRDO) shareholders may be a little concerned to see that the President, William Brennan, recently sold a substantial US$8.8m worth of stock at a price of US$17.50 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
View our latest analysis for Credo Technology Group Holding
The Last 12 Months Of Insider Transactions At Credo Technology Group Holding
In fact, the recent sale by William Brennan was the biggest sale of Credo Technology Group Holding shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$19.11). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 13%of William Brennan'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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Credo Technology Group Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Credo Technology Group Holding insiders own 19% of the company, currently worth about US$562m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Credo Technology Group Holding and understanding these should be part of your investment process.
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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.