Have Ambarella Insiders Been Selling Stock?

We'd be surprised if Ambarella, Inc. (NASDAQ:AMBA) shareholders haven't noticed that the Chief Financial Officer, John Young, recently sold US$462k worth of stock at US$72.50 per share. On the bright side, that sale was only 5.8% of their holding, so we doubt it's very meaningful, on its own.

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Ambarella Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP of Systems & GM of Asia Design Centers, Chi-Hong Ju, for US$909k worth of shares, at about US$81.29 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$71.98. So it may not shed much light on insider confidence at current levels.

Insiders in Ambarella didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Ambarella

I will like Ambarella better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Ambarella

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ambarella insiders own 5.5% of the company, currently worth about US$169m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ambarella Tell Us?

Insiders sold Ambarella shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Ambarella has 2 warning signs we think you should be aware of.

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.

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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.