Credo CTO Executes Rule‑Based Sale of 13,325 Shares Amid Bull Market, Raising No Red Flags for Investors

Insider Selling in a Bull Market: What Credo Investors Should Note

1. A Structured Exit Amid a Strong Upswing On January 8, 2026, Cheng Chi Fung – the Chief Technology Officer of Credo Technology Group Holding – executed a Rule 10b‑5‑1 trading plan that sold 13,325 ordinary shares at an average price of $141.22, reducing his stake to 6,390,805 shares. The sale was part of a pre‑planned schedule that began on September 5, 2025, and spanned seven consecutive trades over the day, each moving in a narrow price corridor between $135.44 and $141.89. This disciplined approach is typical of a rule‑based plan, designed to avoid market‑impact concerns and to comply with insider‑trading restrictions.

From a price perspective, the sale came when the market was trading near a 52‑week high of $213.80, but the shares had just fallen 11.29 % for the week and were down 0.04 % on the day. With the stock closed at $150.42, the 0.04 % intraday dip suggests that the sale did not materially move the market – a key point for investors who worry that insider outflows may signal a lack of confidence.

2. Investor Implications: Confidence or Confirmation? The sheer volume – roughly 13 k shares – is modest relative to Credo’s market cap of $27.2 billion. Even a 0.5 % shareholding would be about 135 million shares, so the transaction represents only about 0.01 % of the outstanding float. For most retail investors, this is unlikely to erode confidence.

However, the timing of the sale, immediately after a week‑long rally, can be interpreted as a “take‑profit” move. Investors who are concerned about over‑valuation may see the 124.92 % year‑to‑date gain and the high P/E ratio of 123.71 as signals to reassess risk. The positive social‑media sentiment (+23) and a 16.10 % buzz indicate that the broader conversation remains bullish, but the low intensity of buzz suggests that insider activity has not sparked a wave of new selling pressure.

3. The CTO’s Trading History: A Pattern of Regular, Rule‑Based Outflows Cheng’s insider transactions reveal a consistent pattern of selling through a 10b‑5‑1 plan. From December 2025, he has completed multiple batches of 3,000–20,000 shares, with average prices ranging from $140 to $176. His largest single batch, 20,731 shares on 2025‑12‑29, was executed at $143.97. The most recent batch of 13,325 shares on 2026‑01‑08 followed the same rule‑based cadence.

These transactions are not sporadic but scheduled, indicating that the CTO is not reacting to market noise but following a predetermined plan—likely tied to tax planning or diversification of personal wealth. Historically, the plan has been implemented at price points that are slightly below the daily high, suggesting a modest “sell‑high” strategy that preserves upside exposure while locking in gains.

4. Forward‑Look: Credo’s Growth vs. Execution Risks Credo’s business model—providing connectivity solutions across IP, chiplets, optical DSPs, and active cables—positions it to benefit from AI and data‑center growth. Analysts highlight its involvement in zero‑flap optics, PCIe Gen6 wins, and the Weaver gearbox as catalysts for expanding market share. Yet the company faces execution risks: supply‑chain constraints from TSMC, the need for rapid product launches, and aggressive growth assumptions.

If the CTO’s disciplined selling reflects a personal need to diversify rather than a negative view of the company’s prospects, then the transaction may be neutral for the business. However, should insider activity accumulate—especially if coupled with a slowdown in revenue or margin pressure—investors may interpret a shift in sentiment and reconsider their exposure.

5. Bottom Line for Investors

• The sale is modest and rule‑based, unlikely to move the market or signal a lack of confidence.
• The transaction occurs at a price that is only slightly below the week’s high, suggesting a routine profit‑taking move.
• Historical patterns show Cheng consistently sells through a pre‑planned schedule, pointing to personal financial planning rather than strategic concerns.
• Credo’s fundamentals remain strong, with a high market cap, significant revenue from AI‑related hardware, and a solid product pipeline.

For investors, the key takeaway is that insider selling should be viewed in context: a small, pre‑planned sale amid an otherwise bullish environment, with no immediate red flags. Keeping an eye on subsequent trades, especially if the pattern changes or the company reports weaker earnings, will provide clearer signals about the company’s trajectory.