Ambarella (NASDAQ:AMBA) Shares Up 3.8% – Should You Buy?

Ambarella, Inc. (NASDAQ:AMBA)’s share price shot up 3.8% during mid-day trading on Thursday . The company traded as high as $69.26 and last traded at $70.2180. 148,777 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 1,340,440 shares. The stock had previously closed at $67.62.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on AMBA shares. Summit Insights cut Ambarella from a “buy” rating to a “hold” rating in a research note on Friday, May 29th. Stifel Nicolaus decreased their target price on shares of Ambarella from $106.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, September 4th. Rosenblatt Securities reissued a “buy” rating and set a $120.00 price target on shares of Ambarella in a research report on Wednesday, September 16th. Northland Securities set a $101.00 price target on shares of Ambarella in a report on Wednesday, June 17th. Finally, Craig Hallum cut shares of Ambarella from a “buy” rating to a “hold” rating and set a $70.00 price objective on the stock. in a research report on Friday, September 4th. Five equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $89.56.

Ambarella Stock Up 2.9%

The company’s fifty day simple moving average is $71.63 and its 200 day simple moving average is $68.37. The firm has a market capitalization of $3.07 billion, a PE ratio of -54.13 and a beta of 2.09.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01. Ambarella had a negative return on equity of 10.03% and a negative net margin of 13.48%.The firm had revenue of $108.12 million for the quarter, compared to the consensus estimate of $107.76 million. During the same quarter in the prior year, the business earned $0.15 EPS. The business’s revenue for the quarter was up 13.2% on a year-over-year basis. Equities research analysts forecast that Ambarella, Inc. will post -1.12 EPS for the current year.

Insider Buying and Selling

In other news, VP Chi-Hong Ju sold 2,009 shares of the company’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $64.83, for a total value of $130,243.47. Following the sale, the vice president directly owned 154,153 shares of the company’s stock, valued at $9,993,738.99. This represents a 1.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Yun-Lung Chen sold 5,958 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $78.66, for a total transaction of $468,656.28. Following the transaction, the vice president directly owned 60,557 shares of the company’s stock, valued at $4,763,413.62. This represents a 8.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 48,468 shares of company stock valued at $3,878,932 over the last 90 days. 4.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Financial Management Professionals Inc. bought a new position in shares of Ambarella in the second quarter worth approximately $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Ambarella during the second quarter valued at approximately $34,000. Essential Partners LLC raised its holdings in Ambarella by 90.1% in the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after acquiring an additional 228 shares during the last quarter. Cassaday & Co Wealth Management LLC purchased a new position in Ambarella in the 1st quarter worth approximately $30,000. Finally, EverSource Wealth Advisors LLC lifted its position in Ambarella by 60.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 668 shares of the semiconductor company’s stock valued at $34,000 after acquiring an additional 252 shares in the last quarter. 82.09% of the stock is owned by hedge funds and other institutional investors.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing and artificial intelligence at the edge. Its technology is designed to help devices capture, process, analyze and transmit high-quality video while reducing the need to send data to cloud-based systems.

The company’s product portfolio includes its CVflow family of AI vision processors, video processors and related software. These solutions support computer vision and machine learning applications in security cameras, automotive systems, advanced driver-assistance systems, robotics, industrial equipment and consumer devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets globally through its semiconductor products and technology partnerships.