Zacks Investment Research cut shares of Ambarella (NASDAQ:AMBA) from a hold rating to a sell rating in a research report released on Wednesday.

According to Zacks, “Ambarella's third-quarter results hurt from continued decline in revenues from consumer applications, including sports, VR and the drone cameras. This downtrend is expected to continue. Transition of the business away from consumer electronic applications toward computer vision coupled with geopolitical and macroeconomic challenges are taking a toll on the company’s revenues. Ambarella is also hurt by decline in chip sales to GoPro. Shares have underperformed the industry on a year-to-date basis. Nonetheless, Ambarella expects the demand for security cameras with computer vision capability to continue to grow, giving it an opportunity to increase its value contribution per camera, and hence boost top-line.”

A number of other research firms have also weighed in on AMBA. Roth Capital lifted their price objective on shares of Ambarella to $40.00 and gave the company a neutral rating in a research report on Friday, November 30th. Bank of America lowered shares of Ambarella from a neutral rating to an underperform rating and set a $35.00 price objective on the stock. in a research report on Friday, August 31st. Stifel Nicolaus lowered their price objective on shares of Ambarella from $56.00 to $45.00 and set a buy rating on the stock in a research report on Friday, August 31st. Needham & Company LLC reiterated a hold rating on shares of Ambarella in a research report on Friday, August 31st. Finally, BidaskClub upgraded shares of Ambarella from a sell rating to a hold rating in a research report on Tuesday, October 16th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $48.95.

NASDAQ:AMBA opened at $37.61 on Wednesday. Ambarella has a 1-year low of $30.00 and a 1-year high of $66.23. The firm has a market capitalization of $1.21 billion, a P/E ratio of 68.38 and a beta of 1.09.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Thursday, November 29th. The semiconductor company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.27) by ($0.01). Ambarella had a negative net margin of 9.97% and a negative return on equity of 5.35%. The firm had revenue of $57.30 million during the quarter, compared to analysts’ expectations of $57.12 million. During the same quarter last year, the business earned $0.75 earnings per share. The business’s quarterly revenue was down 35.7% on a year-over-year basis. As a group, equities analysts anticipate that Ambarella will post -1.02 earnings per share for the current year.

In other Ambarella news, CEO Feng-Ming Wang sold 10,727 shares of the business’s stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $35.56, for a total transaction of $381,452.12. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Leslie Kohn sold 6,799 shares of the business’s stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $35.46, for a total transaction of $241,092.54. Following the sale, the insider now owns 916,795 shares in the company, valued at $32,509,550.70. The disclosure for this sale can be found here. Insiders have sold a total of 25,873 shares of company stock worth $934,017 over the last 90 days. Insiders own 5.84% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of AMBA. Raymond James Financial Services Advisors Inc. purchased a new stake in shares of Ambarella during the 2nd quarter worth $1,412,000. Alps Advisors Inc. acquired a new position in shares of Ambarella during the 2nd quarter worth $264,000. Bank of New York Mellon Corp raised its stake in shares of Ambarella by 2.6% during the 2nd quarter. Bank of New York Mellon Corp now owns 125,009 shares of the semiconductor company’s stock worth $4,827,000 after buying an additional 3,155 shares during the last quarter. SG Americas Securities LLC raised its stake in shares of Ambarella by 310.9% during the 2nd quarter. SG Americas Securities LLC now owns 31,651 shares of the semiconductor company’s stock worth $1,222,000 after buying an additional 23,949 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of Ambarella by 11.9% during the 2nd quarter. Russell Investments Group Ltd. now owns 23,759 shares of the semiconductor company’s stock worth $918,000 after buying an additional 2,533 shares during the last quarter. Institutional investors own 80.17% of the company’s stock.

About Ambarella

Ambarella, Inc develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, computer vision functionality, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

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