BU LIP TAN Takes Money Off The Table, Sells $13.36M In Credo Technology Group Stock

It was reported on June 18, that BU LIP TAN, Board Member at Credo Technology Group CRDO executed a significant insider sell, according to an SEC filing.

What Happened: TAN's recent move involves selling 171,473 shares of Credo Technology Group. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $13,358,179.

During Thursday's morning session, Credo Technology Group shares up by 6.64%, currently priced at $85.0.

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 remarkable performance in 3 months is evident. As of 30 April, 2025, the company achieved an impressive revenue growth rate of 25.94%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 67.16%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Credo Technology Group exhibits below-average bottom-line performance with a current EPS of 0.21.

Debt Management: Credo Technology Group's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 274.86 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 33.06 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): Credo Technology Group's EV/EBITDA ratio stands at 345.19, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

A Closer Look at Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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.