Stock Analysis

Brian White Is The Chief Financial Officer of Ambarella, Inc. (NASDAQ:AMBA) And They Just Sold 56% Of Their Shares

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Anyone interested in Ambarella, Inc. (NASDAQ:AMBA) should probably be aware that the Chief Financial Officer, Brian White, recently divested US$101k worth of shares in the company, at an average price of US$82.25 each. Equally important, that sale actually reduced their holding by a full 56% which hardly makes us feel bullish about the stock.

See our latest analysis for Ambarella

The Last 12 Months Of Insider Transactions At Ambarella

The insider, Yun-Lung Chen, made the biggest insider sale in the last 12 months. That single transaction was for US$834k worth of shares at a price of US$104 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$76.81). So it is hard to draw any strong conclusion from it.

Ambarella insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:AMBA Insider Trading Volume March 18th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Ambarella

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Ambarella insiders own 5.4% of the company, worth about US$162m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Ambarella Insider Transactions Indicate?

Insiders sold Ambarella shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Ambarella.

But note: Ambarella may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

What are the risks and opportunities for Ambarella?

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide.

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  • Revenue is forecast to grow 11.62% per year


  • Shareholders have been diluted in the past year

  • Significant insider selling over the past 3 months

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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