Ambarella (NASDAQ:AMBA) Shares Gap Down – Time to Sell?

Ambarella, Inc. (NASDAQ:AMBA) gapped down before the market opened on Friday . The stock had previously closed at $70.90, but opened at $61.05. Ambarella shares last traded at $59.2720, with a volume of 1,475,693 shares.

Ambarella News Summary

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q4 results beat expectations: revenue of $100.9M (+20.1% Y/Y) and adjusted EPS $0.13 topped Street estimates, and fiscal 2026 revenue rose ~37% year‑over‑year — evidence demand for Ambarella’s edge‑AI chips remains strong. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management highlighted continued Edge AI momentum and new product launches as drivers of record annual revenue, supporting a multi‑year growth story in high‑performance vision semiconductors. Q4 2026 Earnings Call Highlights
• Positive Sentiment: Corporate/board update: Ambarella appointed veteran semiconductor executive Gregory M. Brya to the board, which may strengthen governance and industry expertise as the business scales. Ambarella Adds Veteran Director
• Neutral Sentiment: Q1 FY2027 revenue guide provided: $97M–$103M (consensus ≈ $96.6M). the range is roughly in line with Street expectations but signals a more moderate near‑term cadence versus the pace of FY2026. Earnings Release / Call Transcript
• Negative Sentiment: Management warned revenue growth will slow this fiscal year — investors often punish companies that flag deceleration even after a beat, which helps explain selling pressure after the print. Ambarella Guides for Revenue Growth to Slow This Fiscal Year
• Negative Sentiment: Market reaction: coverage and headlines noted the stock fell after hours/trading despite the beat — short‑term selling likely driven by guidance tone and mixed operating metrics (operating loss / cash & balance‑sheet nuances flagged by some reports). Ambarella Falls Despite Beating Estimates
• Negative Sentiment: Insider selling and commentary on operating losses were highlighted in some summaries (and QuiverQuant flagged multiple insider sales), which can weigh on sentiment despite top‑line strength. QuiverQuant: Stock Falls on Q4 Earnings

Analyst Ratings Changes

A number of analysts recently issued reports on AMBA shares. Needham & Company LLC restated a “buy” rating and set a $100.00 price objective on shares of Ambarella in a report on Wednesday, November 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Ambarella in a research report on Wednesday, January 21st. Wall Street Zen cut shares of Ambarella from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Stifel Nicolaus reiterated a “buy” rating and issued a $100.00 price objective (up from $90.00) on shares of Ambarella in a research note on Wednesday, November 26th. Finally, Rosenblatt Securities increased their price objective on Ambarella from $100.00 to $115.00 and gave the company a “buy” rating in a report on Wednesday, November 26th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $96.00.

Ambarella Price Performance

The stock has a market capitalization of $2.50 billion, a PE ratio of -30.91 and a beta of 1.97. The business’s fifty day moving average price is $68.17 and its 200-day moving average price is $76.01.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.10 by $0.03. Ambarella had a negative net margin of 21.31% and a negative return on equity of 13.02%. The company had revenue of $100.87 million during the quarter, compared to analysts’ expectations of $100.17 million. During the same quarter in the previous year, the company earned $0.11 earnings per share. Ambarella’s revenue for the quarter was up 20.1% on a year-over-year basis. On average, analysts expect that Ambarella, Inc. will post -2.81 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Ambarella news, Director Christopher B. Paisley sold 500 shares of the firm’s stock in a transaction dated Friday, December 26th. The stock was sold at an average price of $72.18, for a total value of $36,090.00. Following the sale, the director owned 41,279 shares of the company’s stock, valued at $2,979,518.22. This trade represents a 1.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Feng-Ming Wang sold 4,950 shares of Ambarella stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $71.82, for a total value of $355,509.00. Following the sale, the chief executive officer owned 783,979 shares of the company’s stock, valued at approximately $56,305,371.78. This trade represents a 0.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 27,685 shares of company stock valued at $2,016,598 in the last ninety days. 5.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Ambarella

Institutional investors and hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its position in Ambarella by 2,312.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company’s stock worth $61,250,000 after acquiring an additional 828,773 shares in the last quarter. UBS Group AG lifted its stake in Ambarella by 379.3% during the third quarter. UBS Group AG now owns 821,747 shares of the semiconductor company’s stock worth $67,811,000 after purchasing an additional 650,306 shares during the last quarter. Squarepoint Ops LLC purchased a new position in shares of Ambarella in the 2nd quarter worth about $36,810,000. Barclays PLC increased its position in shares of Ambarella by 121.7% during the 3rd quarter. Barclays PLC now owns 775,113 shares of the semiconductor company’s stock valued at $63,962,000 after purchasing an additional 425,546 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its holdings in shares of Ambarella by 894.7% during the 2nd quarter. Balyasny Asset Management L.P. now owns 459,562 shares of the semiconductor company’s stock valued at $30,361,000 after buying an additional 413,362 shares in the last quarter. 82.09% of the stock is owned by hedge funds and other institutional investors.

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.