Insiders Cut Exposure to These Companies Amid Growing Global Economic Concerns

Let’s now move on to Ambarella Inc (NASDAQ:AMBA), which had five different insiders sell stock last week. Yun-Lung Chen, who has been Vice President of Business Development at Ambarella since 2011, sold off his entire stake of 5,739 shares on Thursday at prices in the range of $71.8 and $74.8 per share. He also disposed of 8,321 shares earlier last week at a price of $68.8 per unit. However, all these shares represented either restricted stock units or stock options, which appear to had been fully exercised or vested prior to their sale. Ambarella’s CFO, George Laplante, also sold 4,450 shares for $70.8 apiece last week, but these shares were sold to pay tax obligations from the vesting of restricted stock units. It seems that the insider selling activity of the aforementioned executives and of the other ones is not entirely related to the company’s future outlook and prospects, as most of them sold shares to cover tax obligations from the vesting of restriced stock. However, the company anticipates a reduction in its chip shipments mainly as a result of limited new wearable product launches. To be more detailed on that, a recent report released by Cleveland Research indicated a lower demand for the wearable sports cameras created by GoPro Inc (NASDAQ:GPRO), which has Ambarella as its main chip supplier (see more details here). The shares of the developer of low-power, HD video compression and image processing semiconductors have advanced more than 31% since the beginning of the year despite being affected by the broader market selloff. Ken Griffin’s Citadel Investment Group added a 142,335 share-stake in Ambarella Inc (NASDAQ:AMBA) during the second quarter.

Last but not least, we will look into the insider activity at BorgWarner Inc. (NYSE:BWA). Alexis P. Michas, the non-executive chairman of BorgWarner’s Board of Directors, offloaded 10,000 shares at $43.31 apiece. After the last week’s transaction, the director’s holding comprises 109,640 shares. It appears that the director made the right call by reducing his stake, as the shares of BorgWarner lost 7.60% during the trading session on Tuesday. This drop might come after Remy International Inc. (NASDAQ:REMY)’s stockholders approved the previously-announced agreement and plan of merger related to BorgWarner’s acquisition of the company. Earlier this year, BorgWarner agreed to acquire Remy for $951 million in cash, which brought together two auto parts makers that had been working on making products aimed at enhancing the efficiency of vehicles. Even so, the acquisition is not completed yet as it remains subject to the waiver of customary closing conditions. It appears that this acquisition have sent the shares of BorgWarner plummeting, which have lost 28% since the beginning of the year. Mario Gabelli’s GAMCO Investors is one of the largest shareholders of BorgWarner Inc. (NYSE:BWA) within our database, owning 894,600 shares.

Disclosure: None