Have Ambarella Insiders Been Selling Stock?

Anyone interested in Ambarella, Inc. (NASDAQ:AMBA) should probably be aware that the Co-Founder, Feng-Ming Wang, recently divested US$244k worth of shares in the company, at an average price of US$52.26 each. On the bright side, that sale was only 0.6% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Ambarella

In the last twelve months, the biggest single sale by an insider was when the Senior VP of Systems & GM of Asia Design Centers, Chi-Hong Ju, sold US$387k worth of shares at a price of US$75.72 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$64.89). So it may not tell us anything about how insiders feel about the current share price.

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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Ambarella

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 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 6.0% of the company, worth about US$158m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Ambarella Insiders?

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 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. In terms of investment risks, we've identified 2 warning signs with Ambarella and understanding these should be part of your investment process.

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.