Insider Sale: Credo Director Trims Stake with $76-$79 Share Disposals
Rhea-AI Filing Summary
Credo Technology Group Holding (NASDAQ: CRDO) filed a Form 4 disclosing that director Lip-Bu Tan, through Walden Technology Ventures Investments II L.P., sold a total of 171,473 ordinary shares on 16 June 2025 across four tranches at weighted-average prices ranging from $76.6506 to $79.1236.
The transactions generated approximately $13.3 million in gross proceeds and reduced Walden’s indirect holding from about 785,198 to 613,725 shares, a decline of roughly 22%. Tan also continues to hold 133,583 shares via the Lip-Bu Tan and Ysa Loo Trust, 39,736 shares through A&E Investment LLC, and 53,574 shares directly.
No derivatives were transacted and the filing does not indicate that the sales were executed under a Rule 10b5-1 trading plan. No other material changes or risk factors were disclosed.
Positive
- None.
Negative
- Director Lip-Bu Tan sold 171,473 shares (~22% of his indirect Walden stake) on 06/16/25 for roughly $13.3 million at $76-$79 per share
- Filing does not indicate a Rule 10b5-1 trading plan, suggesting discretionary insider selling
Insights
TL;DR: ~$13 M discretionary insider sale trims indirect position by ~22%, tilting near-term sentiment negative.
The Form 4 shows four open-market trades totaling 171,473 CRDO shares at $76.65–$79.12 on 16 Jun 2025, worth about $13.3 million. Post-sale, Walden’s stake falls to 613,725 shares while other trusts and direct holdings remain intact, leaving Tan with ~840 K shares overall. The Rule 10b5-1 checkbox is unchecked, implying discretionary timing. Large disposals by directors often signal profit-taking or reduced conviction and may pressure the stock in the short run. However, the director retains a substantial holding, so long-term alignment persists. Overall impact skews negative but is not catastrophic.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Ordinary Shares | 39,100 | $76.6506 | $3.00M |
| Sale | Ordinary Shares | 32,373 | $77.2275 | $2.50M |
| Sale | Ordinary Shares | 58,374 | $78.2447 | $4.57M |
| Sale | Ordinary Shares | 41,626 | $79.1236 | $3.29M |
| holding | Ordinary Shares | -- | -- | -- |
| holding | Ordinary Shares | -- | -- | -- |
| holding | Ordinary Shares | -- | -- | -- |
Footnotes (1)
- This transaction was executed in multiple trades at prices ranging from $76.00 to $76.97. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected. The Reporting Person is the Managing Director of China Walden Venture Investment II G.P., Ltd., which is the general partner of Walden Technology Ventures Investments II, L.P. The Reporting Person disclaims beneficial ownership of these indirectly held shares except to the extent of any pecuniary interest therein. This transaction was executed in multiple trades at prices ranging from $77.00 to $77.97. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected. This transaction was executed in multiple trades at prices ranging from $78.00 to $78.70. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected. This transaction was executed in multiple trades at prices ranging from $79.00 to $79.44. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected. The Reporting Person is the joint trustee of the Lip-Bu Tan and Ysa Loo Trust Dated 2/3/92. The Reporting Person disclaims beneficial ownership of these indirectly held shares except to the extent of any pecuniary interest therein. The Reporting Person is the Manager of A&E Investment LLC, an entity owned by the Reporting Person's family trust for which the Reporting Person is a joint trustee.
