Ambarella Inc. (NASDAQ: AMBA) reported a series of insider transactions involving Chief Operations Officer Lee Chan W. in mid-March 2026. Lee sold a total of 10,370 ordinary shares across two separate trades, realizing approximately $552,213 in proceeds. The dispositions took place on March 17 and March 19, 2026, at prices ranging from $52.77 to $54.14 per share.
Breaking down the sales, Lee sold 6,729 shares on March 17 and followed with a sale of 3,641 shares on March 19. Company filings indicate these sales were executed to cover tax liabilities that resulted from the vesting of restricted stock units (RSUs).
Alongside the share disposals, Lee completed a set of equity-acquisition moves earlier in the same period. On March 17, Lee exercised options to acquire 13,678 ordinary shares. The next day, March 18, Lee received 7,320 shares as payment of the reporting person’s annual bonus under Ambarella’s established Fiscal Year 2026 Annual Bonus Plan.
Market context for the insider activity shows AMBA shares have declined about 33% over the past six months, though the stock was trading at $55.86 at the time of the filings. An InvestingPro analysis cited in the filings places a Fair Value for AMBA at $61.87, indicating that the platform’s assessment treats the shares as undervalued at then-current levels. The filings also point readers to a Pro Research Report on Ambarella available within the InvestingPro library of research reports.
These transactions occurred in the wake of Ambarella’s fourth-quarter fiscal 2026 earnings results. The company reported earnings per share of $0.13 for the quarter, beating the consensus estimate of $0.10. Revenue for the period was $100.9 million, slightly above the expected $100.16 million. Despite the beats, revenue declined 7.0% quarter-over-quarter, a contraction the company attributed to seasonal declines in its automotive and IoT segments.
Following the results, Stifel revised its price target on Ambarella from $100 to $90 while retaining a Buy rating on the stock. Separately, Ambarella’s board approved the Fiscal Year 2027 Annual Bonus Plan for executive officers. Under the plan, CEO Feng-Ming Wang’s target bonus is set at 100% of his annual base salary, while other executive officers have target bonuses ranging from 40% to 75% of their respective salaries.
Taken together, the filings show a cluster of standard equity actions - option exercises, RSU vesting, bonus-share payment and tax-driven share sales - that coincided with the company’s regular earnings disclosure and subsequent analyst coverage adjustments.
Summary of transactions and corporate developments
- Insider sales: 10,370 ordinary shares sold on March 17 and March 19, 2026, for roughly $552,213.
- Sale prices: ranged from $52.77 to $54.14 per share; shares trading at $55.86 at time of reporting.
- Reason for sales: to meet tax obligations from RSU vesting.
- Related equity actions: option exercise for 13,678 shares on March 17; receipt of 7,320 bonus shares on March 18 under FY2026 plan.
- Quarterly results: Q4 FY2026 EPS $0.13 (vs. $0.10 est.), revenue $100.9 million (vs. $100.16 million est.), revenue down 7.0% QoQ due to seasonality in automotive and IoT segments.
- Analyst move: Stifel reduced price target from $100 to $90 but kept a Buy rating.
- Compensation update: FY2027 Annual Bonus Plan sets CEO target at 100% of base salary; other executives 40%-75% targets.