Credo Technology CEO Sells Company Shares Worth $2.5 Million
Key Points
The disposition involved 16,672 shares at an execution value of approximately $2.5 million.
The transaction size was equal to 0.78% of the total equity stake held by the executive prior to the filing.
Activity was conducted through indirect holdings, including the Brennan Family Trust, DTD 09/06/2002.
William Joseph Brennan, President and Chief Executive Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), executed a sale of 16,672 shares on September 14, 2026, according to a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $2.5 million |
| Shares sold | 16,672 |
| Post-transaction shares (directly held) | ~366,000 |
| Post-transaction shares (indirectly held) | ~1.8 million |
| Post-transaction value | $317.8 million |
Transaction value based on SEC Form 4 weighted average sale price ($151.88); post-transaction value based on September 14, 2026 market close ($150.09).
Key questions
- What was the regulatory context of this transaction?
The sale was conducted under a Rule 10b5-1 trading plan established on June 10, 2026, which allows corporate insiders to set up a pre-determined schedule for selling company stock to avoid concerns regarding trades made using material non-public information. - How did the transaction price compare to recent market performance?
The shares were sold at a weighted average price of $151.88, while the company's stock has seen a 7% decline over the 12 months ending on the September 14, 2026 transaction date. - Which entities were involved in the indirect disposition?
The 16,672 shares were sold from indirect holdings, specifically the Brennan Family Trust, DTD 09/06/2002, reflecting a distribution from an established trust structure. - What is the executive's remaining exposure to the company?
After this transaction, the executive maintains a substantial equity interest of approximately 2.1 million shares across direct and indirect holdings, which is valued at $339.1 million as of the September 16, 2026 market close price of $161.49.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-16) | $161.49 |
| Market Capitalization | $29.6 billion |
| Revenue (TTM) | $1.6 billion |
| Net Income (TTM) | $538.3 million |
Company Snapshot
- Credo Technology Group specializes in advanced high-speed connectivity solutions for optical and electrical Ethernet applications, offering integrated circuits, active electrical cables, and SerDes chiplets developed through proprietary serializer/deserializer technology.
- The company generates revenue through the design and sale of semiconductor solutions that enable high-speed data transmission across enterprise, cloud infrastructure, and telecommunications networks globally.
- Credo serves hyperscale data center operators, telecommunications equipment manufacturers, and enterprise customers across the United States, Mexico, Mainland China, Hong Kong, and other international markets.
Credo Technology Group is a semiconductor design company with a market capitalization of $29.6 billion, generating $1.6 billion in TTM revenue with a net profit margin of approximately 33.6%.
The company maintains a lean operational structure and leverages proprietary SerDes technology to deliver differentiated high-speed connectivity solutions in the competitive semiconductor market, positioning itself as a critical enabler of data center and telecommunications infrastructure modernization.
What this transaction means for investors
CEO William Brennan's September 14 sale of Credo Technology Group stock at a weighted average price of $151.88 came at a time when shares had fallen well below the 52-week high of $308.67, although they have edged up since his disposition. That said, the transaction was not a market-timed investment decision.
Rather, Brennan's disposal was executed as part of a pre-established Rule 10b5-1 plan, making this a non-discretionary transaction. Moreover, he retains a substantial equity stake in the company with about 2.1 million shares held directly and indirectly through trusts and GRATs. This ensures his continued alignment with shareholder interests.
Credo has benefited tremendously from the artificial intelligence boom. Its high-speed connectivity solutions are in demand for use in AI data centers. This led to 115% year-over-year sales growth to $479 million in its fiscal first quarter ended Aug. 1.
However, Credo's stock price has been highly volatile, as demonstrated by its elevated beta exceeding three, resulting in Brennan's pre-arranged sale coming at a temporary down point in the stock price.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.