Ambarella (NASDAQ:AMBA) Shares Gap Down Following Insider Selling

Ambarella, Inc. (NASDAQ:AMBA)’s share price gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $91.84, but opened at $82.52. Ambarella shares last traded at $73.44, with a volume of 1,286,634 shares trading hands.

Specifically, CEO Feng-Ming Wang sold 32,500 shares of the company’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $91.01, for a total value of $2,957,825.00. Following the completion of the transaction, the chief executive officer directly owned 806,061 shares in the company, valued at approximately $73,359,611.61. This represents a 3.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John Alexander Young sold 400 shares of Ambarella stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $96.00, for a total transaction of $38,400.00. Following the sale, the chief financial officer directly owned 117,623 shares in the company, valued at $11,291,808. This trade represents a 0.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AMBA. Susquehanna lifted their target price on Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research report on Friday. Stifel Nicolaus set a $106.00 price objective on Ambarella in a report on Friday. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Ambarella in a research note on Tuesday. Bank of America reissued a “neutral” rating on shares of Ambarella in a research report on Friday. Finally, Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $99.25.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q1 revenue of $100.4 million, up 16.9% year over year, while EPS of $0.11 matched estimates and revenue slightly topped forecasts, signaling steady execution in its edge-AI chip business. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Positive Sentiment: The company guided second-quarter revenue to $105 million-$111 million, above Wall Street expectations at the midpoint, which suggests continued momentum into the next quarter. Ambarella outlines $105M-$111M Q2 revenue while Hanwha agreement targets $800M+ over 10+ years
• Positive Sentiment: Ambarella announced a long-term edge-AI agreement with Hanwha that could generate more than $800 million in potential revenue over 10+ years, reinforcing demand for its platform in robotics, industrial automation, and related markets. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: Analyst sentiment improved after the results, with Needham reiterating Buy and raising its target to $100 and Bank of America lifting its target to $96, both citing longer-term edge-AI upside. Quinn Bolton Reiterates Buy on Ambarella, Sets $100 DCF-Based Price Target on Strengthening Auto, Robotics, and Long-Term Deal Momentum
• Neutral Sentiment: CEO Feng-Ming Wang and CFO John Alexander Young disclosed pre-arranged 10b5-1 stock sales, which are often viewed as routine trading activity rather than a strong fundamental signal. MarketBeat AMBA insider transactions

Ambarella Stock Performance

The firm has a market capitalization of $3.20 billion, a P/E ratio of -41.26 and a beta of 2.17. The stock has a fifty day moving average price of $65.50 and a two-hundred day moving average price of $68.42.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.11. Ambarella had a negative return on equity of 12.16% and a negative net margin of 19.42%.The firm had revenue of $100.36 million for the quarter, compared to analysts’ expectations of $100.12 million. During the same period last year, the business posted $0.07 earnings per share. The firm’s revenue for the quarter was up 16.9% on a year-over-year basis. As a group, research analysts anticipate that Ambarella, Inc. will post -1.27 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ambarella

A number of institutional investors have recently modified their holdings of the business. Vanguard Personalized Indexing Management LLC grew its position in shares of Ambarella by 3.2% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 4,537 shares of the semiconductor company’s stock valued at $374,000 after buying an additional 142 shares during the last quarter. Arizona State Retirement System raised its stake in Ambarella by 1.3% during the third quarter. Arizona State Retirement System now owns 11,899 shares of the semiconductor company’s stock worth $982,000 after buying an additional 157 shares during the last quarter. Main Management ETF Advisors LLC raised its stake in Ambarella by 1.0% during the fourth quarter. Main Management ETF Advisors LLC now owns 17,226 shares of the semiconductor company’s stock worth $1,220,000 after buying an additional 176 shares during the last quarter. National Bank of Canada FI lifted its holdings in Ambarella by 18.9% in the third quarter. National Bank of Canada FI now owns 1,146 shares of the semiconductor company’s stock valued at $95,000 after buying an additional 182 shares during the period. Finally, Pallas Capital Advisors LLC boosted its position in Ambarella by 6.5% during the fourth quarter. Pallas Capital Advisors LLC now owns 3,109 shares of the semiconductor company’s stock valued at $220,000 after acquiring an additional 190 shares during the last quarter. Institutional investors own 82.09% of the company’s stock.

About Ambarella

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.