Insider Sell: CFO Brian White Sells 3,274 Shares of Ambarella Inc
On September 18, 2023, Brian White, the Chief Financial Officer (CFO) of Ambarella Inc (NASDAQ:AMBA), sold 3,274 shares of the company. This move is part of a larger trend of insider selling at Ambarella Inc, as we will explore in this article.
Who is Brian White?
Brian White is the CFO of Ambarella Inc, a leading developer of low-power, high-definition (HD) and Ultra HD video compression, image processing, and computer vision solutions. White has been with the company for several years, playing a crucial role in its financial management and strategic planning.
About Ambarella Inc
Ambarella Inc is a pioneer in the semiconductor industry, specializing in the development of low-power, high-definition and Ultra HD video compression and image processing solutions. The company's products are used in a variety of human and computer vision applications, including security cameras, sports cameras, wearable cameras, drones, and automotive cameras. Ambarella's innovative technology is transforming the way people and machines perceive the world.
Insider Sell Analysis
Over the past year, Brian White has sold a total of 18,349 shares and has not purchased any shares. This recent sale of 3,274 shares is part of a larger trend of insider selling at Ambarella Inc. In fact, over the past year, there have been 38 insider sells and no insider buys.
The insider's selling activities often provide valuable insights into the company's prospects. In this case, the consistent selling by the insider could indicate a bearish outlook on the company's future performance. However, it's also important to note that insiders may sell shares for reasons unrelated to the company's performance, such as personal financial needs.
Stock Price and Valuation
On the day of the insider's recent sale, Ambarella Inc's shares were trading at $57.3, giving the company a market cap of $2.18 billion. Despite the insider selling, the stock appears to be modestly undervalued based on its GuruFocus Value.
With a price of $57.3 and a GuruFocus Value of $71.05, Ambarella Inc has a price-to-GF-Value ratio of 0.81. This suggests that the stock is modestly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, while the insider's selling activities may raise some concerns, the stock's current valuation suggests that it may still offer potential upside for investors. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.
