Ambarella (NASDAQ:AMBA) Trading 5.4% Higher – Still a Buy?

Ambarella, Inc. (NASDAQ:AMBA)’s stock price was up 5.4% during mid-day trading on Monday . The stock traded as high as $65.46 and last traded at $65.1540. Approximately 399,911 shares traded hands during trading, a decline of 66% from the average daily volume of 1,184,785 shares. The stock had previously closed at $61.84.

Analyst Ratings Changes

Several research firms recently weighed in on AMBA. Bank of America upped their price objective on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Susquehanna upped their target price on Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research note on Friday, May 29th. Weiss Ratings upgraded shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. Finally, Rosenblatt Securities increased their price objective on Ambarella from $115.00 to $120.00 in a research note on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $101.12.

Ambarella Stock Performance

The firm has a 50-day moving average price of $74.58 and a 200-day moving average price of $66.54. The stock has a market cap of $2.83 billion, a PE ratio of -40.03 and a beta of 2.11.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share for the quarter, meeting the consensus estimate of $0.11. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The company had revenue of $100.36 million during the quarter, compared to the consensus estimate of $100.12 million. During the same quarter last year, the firm earned $0.07 earnings per share. The firm’s quarterly revenue was up 16.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ambarella, Inc. will post -1.13 EPS for the current fiscal year.

Insider Activity at Ambarella

In other Ambarella news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the sale, the insider owned 157,098 shares of the company’s stock, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO John Alexander Young sold 5,033 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total value of $339,928.82. Following the transaction, the chief financial officer directly owned 112,590 shares in the company, valued at $7,604,328.60. The trade was a 4.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 93,390 shares of company stock valued at $7,709,960 over the last quarter. 4.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ambarella

A number of hedge funds have recently modified their holdings of AMBA. Price T Rowe Associates Inc. MD increased its holdings in Ambarella by 2,312.6% in the 4th 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 increased its stake in shares of Ambarella by 379.3% in 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 in the last quarter. Squarepoint Ops LLC bought a new stake in shares of Ambarella during the 2nd quarter valued at $36,810,000. The Manufacturers Life Insurance Company lifted its stake in shares of Ambarella by 49.5% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company’s stock valued at $81,644,000 after buying an additional 524,937 shares in the last quarter. Finally, Balyasny Asset Management L.P. boosted its holdings in Ambarella by 894.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 459,562 shares of the semiconductor company’s stock worth $30,361,000 after buying an additional 413,362 shares during the period. Institutional investors own 82.09% of the company’s stock.

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.