William Joseph Brennan, president and chief executive officer of Credo Technology Group Holding Ltd (CRDO 5.19%), reported the sale of 18,952 ordinary shares in multiple open-market transactions on Oct. 7, and Octo. 8, per an SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold | 18,952 |
| Transaction value | ~$2.7 million |
| Post-transaction shares | 337,923 |
| Post-transaction value (direct ownership) | ~$50.3 million |
Transaction value based on SEC Form 4 weighted average purchase price ($141.59) for transactions on Oct. 7 and Oct. 8.
Key questions
What proportion of Brennan William Joseph’s direct holdings was represented by this transaction?
The sale reduced direct ownership by approximately 5%, with post-transaction holdings at 337,923 shares. This is below the historical median sell trade size of 30,000 shares, indicating a smaller trade compared to prior transactions.
How does the timing of the trade relate to recent price action and trading plan disclosure?
The weighted average sale price was around $141.59 per share, which was below the Oct. 8, 2025 market close.
What is the context of overall insider ownership following this disposition?
Following the sale, direct ownership represents about 0.2% of the company’s outstanding shares.
How does the market environment compare to historical performance?
As of Oct. 8, the company’s shares had delivered a 341.6% total return over the past year, indicating the transaction occurred amid significant price appreciation and elevated valuation levels.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 10/08/25) | $141.59 |
| Market capitalization | $24.01 billion |
| Revenue (TTM) | $600.14 million |
| Net income (TTM) | $125.12 million |
* 1-year performance is calculated using October 8, 2025 as the reference date, based on a calendar-year window.
Company snapshot
Credo Technology Group operates in the communication equipment industry, focusing on advanced connectivity solutions for high-speed data transmission. It offers products based on SerDes and DSP technologies for data centers and networking infrastructure. Credo maintains a diversified product portfolio and a global customer base.
The company serves global data center operators, networking equipment manufacturers, and enterprise customers across the United States, Mexico, China, Hong Kong, and other markets.
It generates revenue through the sale of hardware products and intellectual property licensing, leveraging proprietary serializer/deserializer and digital signal processor technologies.
Foolish take
CEO Brennan's recently reported sales came via his 10b5-1 trading plan. That's not concerning since these plans outline when executives can buy and sell shares at regular intervals. Hence, his sales don't raise any red flags because they're prearranged rather than a conscious decision to sell.
Notably, he receives a large portion of his annual pay in the form of equity compensation. Last year, the company provided him with a $4.4 million equity grant, representing over 70% of his total pay.
Additionally, his remaining shares have an over $45 million value, tying a significant amount of money to the company's success and stock price.
Looking at the most recent reported results, Credo Technology had blistering revenue growth. Its fiscal first-quarter revenue, for the period that ended on Aug. 2, nearly quadrupled to $223.1 million. The company reported operating income under generally accepted accounting principles of $60.7 million versus a $14.5 million loss a year ago.
Glossary
Insider ownership: The percentage of a company’s shares held by its executives, directors, or key employees.
Open-market transaction: A trade of company shares on a public exchange, not through private or pre-arranged deals.
Form 4: A required SEC filing disclosing insider trades of a company’s securities by officers, directors, or major shareholders.
Weighted average purchase price: The average price paid per share, weighted by the number of shares in each transaction.
Direct ownership: Shares held personally by an insider, not through trusts or other indirect means.
Outstanding shares: The total number of a company’s shares currently held by all shareholders, including insiders and the public.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
SerDes: Short for serializer/deserializer, a technology enabling high-speed data transmission between electronic devices.
DSP: Digital signal processor; a specialized chip for processing digital signals, often used in communications equipment.
Chiplet: A small, modular integrated circuit designed to be combined with others in a single package for greater flexibility.
IP licensing: Granting others the right to use proprietary technology or intellectual property, typically in exchange for fees or royalties.
TTM: The 12-month period ending with the most recent quarterly report.
