CTO Cheng Chi Fung sold 27,500 shares for nearly $5M as stock rallies sharply; history shows his prior exits have consistently underperformed.
Cheng Chi Fung, the company's Chief Technology Officer, liquidated a substantial position of over 27,500 shares worth nearly $5M in a series of 12 transactions on a single day. The timing is notable: the stock has rallied sharply in recent months, trading well below its 52-week high despite the company showing strong fundamentals with profitable operations and accelerating revenue growth. However, Cheng's historical track record on prior sales at this ticker presents a cautionary signal—all five of his previous exits in Credo shares have been poorly timed, with the stock rising after each sale, suggesting he has consistently exited too early. This current liquidation follows the same pattern as his exits just days earlier on April 27, adding to a pattern of continuous selling without any offsetting purchases in the 36-month window. For investors, the question is whether this CTO is finally exiting at the right moment after years of leaving gains on the table, or simply repeating a pattern that has cost him and potentially other shareholders significant upside.