Is Ambarella Stock a Buy Despite Its CFO Selling Over 6,000 Shares?

Core Viewpoint - The recent sale of shares by CFO John Alexander Young of Ambarella does not indicate a negative outlook for the company, as he still retains a significant ownership stake and the stock has been performing well recently [6][8]. Company Overview - Ambarella is a semiconductor provider that specializes in advanced video compression, image processing, and AI-enabled chipsets, targeting automotive, security, and industrial markets [5]. - The company reported a revenue of $108.5 million in Q3, marking a 31% year-over-year increase, primarily driven by sales of its edge AI technology, which accounted for 80% of its Q3 income [7]. Financial Performance - Despite the revenue growth, Ambarella reported a net loss of $15.1 million in Q3, which is an improvement from the previous year's net loss of $24.1 million, indicating progress towards profitability [8]. - The stock price reached a 52-week high of $96.69 on November 12, 2025, contributing to the CFO's decision to sell shares [6]. Insider Transactions - CFO John Alexander Young sold 6,370 shares over two transactions on December 17 and 18, 2025, for a total value of approximately $461,815 at a weighted average price of $72.50 per share [4][6]. - This sale reduced his direct holdings by 5.84%, leaving him with 102,738 shares directly held as of December 19, 2025, with no indirect holdings [2][3].