CFO’s Share Sale: A Stock Dilemma?

There I was, minding my own business, when I learned that John Alexander Young, the CFO of Ambarella, had sold 6,370 shares. My first thought? “Does this mean the sky is falling? Or just that someone needs a new pair of shoes?”

A required SEC filing disclosing insider trades of company stock by officers, directors, or significant shareholders.

Open-market sale:

The sale of securities on a public exchange, available to any investor, rather than through private transactions.

Direct ownership:

Shares held personally by an individual, not through trusts, funds, or other entities.

Indirect holdings:

Shares owned through another entity, such as a trust or family member, rather than held directly.

Derivative awards:

Financial contracts, like stock options, that derive value from the company’s stock and may be exercised for shares.

Disposition:

The act of selling or otherwise transferring ownership of an asset, such as company shares.

Weighted average price:

The average price per share, weighted by the number of shares sold at each price during a transaction.

Original equipment manufacturer (OEM):

A company that produces parts or systems used in another company’s end products.

Original design manufacturer (ODM):

A company that designs and manufactures products that are rebranded and sold by another firm.

System-on-a-chip:

An integrated circuit that combines multiple computer components into a single chip for efficiency and performance.

Insider trading:

The buying or selling of a company’s stock by individuals with access to nonpublic, material information about the company.

TTM:

The 12-month period ending with the most recent quarterly report.

So there you have it-another day in the life of someone who thinks stock prices are the only thing that matters. 📉

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2025-12-25 19:27