In the last year, many Credo Technology Group Holding Ltd (NASDAQ:CRDO) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Credo Technology Group Holding
In the last twelve months, the biggest single sale by an insider was when the President, William Brennan, sold US$8.8m worth of shares at a price of US$17.50 per share. That means that even when the share price was below the current price of US$27.49, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 13% of William Brennan's stake.
Credo Technology Group Holding insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:CRDO Insider Trading Volume June 24th 2024
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Credo Technology Group Holding insiders own 15% of the company, currently worth about US$670m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Credo Technology Group Holding Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Credo Technology Group Holding, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Credo Technology Group Holding.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
昨年、Credo Technology Group Holding Ltd(NASDAQ:CRDO)の多くのインサイダーが会社の大部分の株式を売却し、株主の注意を引く可能性がありました。インサイダートランザクションを評価する際には、インサイダーが売却しているかどうかよりも、インサイダーが買い付けているかどうかを知る方が通常は有益です。後者は多くの解釈が可能なためです。ただし、複数のインサイダーが特定の期間中に株を売却する場合、株主は注意を払う必要があり、それが赤信号である可能性があるためです。
企業のリーダーと他の株主の間のアライメントをテストする別の方法は、彼らが所有している株式の数を見ることです。高いインサイダー所有率は、会社のリーダーシップが株主の利益をより意識していることを示す場合があります。Credo Technology Group Holdingのインサイダーは、現在の株価に基づいて約6.7億ドルに相当する15%の株式を所有しています。ほとんどの株主は、このようなインサイダー所有率を見て満足するでしょう。それは、経営陣のモチベーションが他の株主とよくアラインされていることを示唆しているためです。
Credo Technology Group Holdingのインサイダーについて、このデータは何を示唆していますか?
過去3か月間にインサイダートランザクションはありませんでした。これはあまり意味がありません。Credo Technology Group Holdingの高いインサイダー所有率に関しては良い印象を持っている一方、株式売却に関しては同じことは言えません。したがって、インサイダーが買い付けまたは売却していることを知ることは役立ちますが、特定の企業が直面しているリスクを知ることも役立ちます。これについて、Credo Technology Group Holdingの全体像を把握するためにチェックすべき2つの警告サインを発見しました。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。