Bank of America Cuts Ambarella (NASDAQ:AMBA) Price Target to $70.00

Ambarella (NASDAQ:AMBA) had its target price reduced by Bank of America from $96.00 to $70.00 in a research report sent to investors on Friday morning,Benzinga reports. They currently have a neutral rating on the semiconductor company’s stock.

Several other equities research analysts have also issued reports on the stock. Susquehanna raised their target price on shares of Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, May 29th. Roth Capital cut their price target on shares of Ambarella from $90.00 to $65.00 and set a “neutral” rating on the stock in a report on Friday. Northland Securities set a $101.00 price objective on shares of Ambarella in a research report on Wednesday, June 17th. Weiss Ratings raised shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. Finally, Needham & Company LLC restated a “buy” rating on shares of Ambarella in a research report on Friday. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $89.56.

Ambarella Stock Performance

NASDAQ:AMBA opened at $62.89 on Friday. The firm has a market capitalization of $2.76 billion, a PE ratio of -48.75 and a beta of 2.09. The stock’s fifty day moving average is $74.33 and its 200 day moving average is $68.21. Ambarella has a fifty-two week low of $48.30 and a fifty-two week high of $96.69.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.17 by $0.01. The company had revenue of $108.12 million during the quarter, compared to analyst estimates of $107.76 million. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.12%. Ambarella’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.15 earnings per share. Equities analysts forecast that Ambarella will post -1.13 EPS for the current year.

Insider Buying and Selling at Ambarella

In related news, insider Chan W. Lee sold 2,951 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the transaction, the insider owned 157,098 shares of the company’s stock, valued at $10,662,241.26. This trade represents a 1.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO John Young sold 5,033 shares of Ambarella stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the sale, the chief financial officer owned 112,590 shares of the company’s stock, valued at $7,604,328.60. The trade was a 4.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 58,519 shares of company stock valued at $4,595,475. 4.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ambarella

Hedge funds have recently added to or reduced their stakes in the stock. Financial Management Professionals Inc. bought a new stake in shares of Ambarella during the second quarter valued at approximately $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in Ambarella in the second quarter worth approximately $34,000. Advisory Services Network LLC bought a new position in Ambarella in the third quarter worth approximately $33,000. EverSource Wealth Advisors LLC increased its holdings in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 326 shares during the period. Finally, Essential Partners LLC increased its holdings in Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 228 shares during the period. 82.09% of the stock is currently owned by institutional investors.

Ambarella News Roundup

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year and slightly above estimates, while non-GAAP EPS of $0.18 exceeded consensus. The company also forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with expectations. Ambarella fiscal Q2 results
• Positive Sentiment: Management highlighted record edge-AI revenue and announced long-term agreements with Macnica and Capgemini. The partnerships could expand distribution, systems integration, and enterprise adoption of Ambarella’s edge and physical AI products. Macnica strategic agreement
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and sees substantial potential appreciation despite reducing its price target from $106 to $90. Stifel price target update

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.