Mobileye's directors bought near $8; the banks now say $7.50 or less
Mobileye chairman Safroadu Yeboah-Amankwah and director Frank Yeary spent about $199,000 of their own money on the stock days after the founder announced his exit. Both purchases are underwater, UBS and RBC now value the shares below the directors' cost, and the October 29 revenue report is the test both camps are waiting for.
Vincent Jiang · 2 min read
On July 23, Mobileye+2.73% — Mobileye, up 2.73 percent today said founder Amnon Shashua would step down as chief executive after 27 years, once a board search produces a successor 1. A week later, the buying started. Director Frank Yeary paid $7.98 a share for 12,360 shares on July 30, $98,633 in all, and chairman Safroadu Yeboah-Amankwah paid $8.46 for 11,841 shares on August 6, $100,175, both open-market Form 4 purchases 2. At $7.34 by midday on October 15, both men sat underwater 3.
The banks moved below the board's cost
UBS cut its price target to $7.50 from $9 on October 7, keeping a Neutral rating 4. RBC's Tom Narayan held at $7.00 on October 9 5, and the shares closed at $7.10 on October 12, below even the reduced UBS figure 5. Traders have sided with the banks: 44.6 million shares, 26.7% of the float, are sold short 3.
Both banks now value Mobileye below what its directors paid
Data
| Value | |
|---|---|
| RBC target (9 Oct) | $7 |
| Close, 12 Oct | $7.1 |
| UBS target (7 Oct) | $7.5 |
| Yeary paid (30 Jul) | $7.98 |
| Chairman paid (6 Aug) | $8.46 |
| Consensus target | $10.97 |
Beats every quarter, still no growth
The argument is the top line. Mobileye has beaten adjusted-EPS estimates four quarters running, the latest at $0.19 against a $0.058 forecast, and the stock kept sliding 6. Trailing revenue is $2.02 billion, and the June quarter grew 0.4% from a year earlier 38; GAAP losses of $4.97 a share trace to a $3.8 billion unusual charge 3. Four separate 8-Ks reported officer changes between July 23 and September 10 7, on top of roughly 200 job cuts in December 12.
Revenue has gone sideways for three years
Data
| Quarterly revenue | |
|---|---|
| Q3 '23 | $0.53B |
| Q4 '23 | $0.64B |
| Q1 '24 | $0.24B |
| Q2 '24 | $0.44B |
| Q3 '24 | $0.49B |
| Q4 '24 | $0.49B |
| Q1 '25 | $0.44B |
| Q2 '25 | $0.51B |
| Q3 '25 | $0.5B |
| Q4 '25 | $0.45B |
| Q1 '26 | $0.56B |
| Q2 '26 | $0.51B |
The other side of the trade was Intel
Intel−3.05% — Intel, down 3.05 percent today, which bought Mobileye for $15.3 billion in 2017 and still owns about 77% 19, sold 63.7 million shares at $16.05 in July 2025, grossing just over $1 billion 2. The controlling shareholder sold at $16; the board is buying near $8. Intel finance chief David Zinsner said in July, "We continue to be bullish on Mobileye and its trajectory" 1. The consensus target of $10.97 sits about 55% above the price 5, against roughly $1.4 billion of cash, no debt, a $250 million buyback and a 14.7x forward multiple 3.
October 29 is the revenue test
Third-quarter results land before the open on October 29 1011. The directors bought the plan to run Mobileye's own robotaxi service in a US city from 2027 9; the market keeps pricing the flat chip business underneath it. The tell is revenue, and its next reading is two weeks out.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
