BU LIP TAN Takes Money Off The Table, Sells $4.05M In Credo Technology Group Stock

Revealing a significant insider sell on September 16, BU LIP TAN, Board Member at Credo Technology Group CRDO, as per the latest SEC filing.

What Happened: TAN's recent move involves selling 25,000 shares of Credo Technology Group. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $4,049,457.

As of Wednesday morning, Credo Technology Group shares are down by 1.74%, currently priced at $161.56.

All You Need to Know About 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's Financial Performance

Revenue Growth: Credo Technology Group's remarkable performance in 3 months is evident. As of 31 July, 2025, the company achieved an impressive revenue growth rate of 273.57%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 67.41%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Credo Technology Group's EPS is below the industry average. The company faced challenges with a current EPS of 0.37. This suggests a potential decline in earnings.

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.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 228.36, Credo Technology Group's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 50.96, Credo Technology Group's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 205.2 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Activity Matters in Finance

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

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

A Closer Look at Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.