Anyone interested in Ambarella, Inc. (NASDAQ:AMBA) should probably be aware that the Senior VP of Systems & GM of Asia Design Centers, Chi-Hong Ju, recently divested US$239k worth of shares in the company, at an average price of US$57.11 each. However, the silver lining is that the sale only reduced their total holding by 2.3%, so we're hesitant to read anything much into it, on its own.
Ambarella Insider Transactions Over The Last Year
Notably, that recent sale by Senior VP of Systems & GM of Asia Design Centers Chi-Hong Ju was not the only time they sold Ambarella shares this year. They previously made an even bigger sale of -US$348k worth of shares at a price of US$81.81 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$57.43. So it may not shed much light on insider confidence at current levels.
Ambarella insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Ambarella Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Ambarella insiders own 6.1% of the company, worth about US$143m. 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 Do The Ambarella Insider Transactions Indicate?
Insiders haven't bought Ambarella stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. For example - Ambarella has 3 warning signs we think you should be aware of.
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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.