Ambarella, Inc. (NASDAQ:AMBA) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Ambarella, Inc. has received an average rating of "Moderate Buy" from analysts, with projections indicating a 12-month price target of $93.88.
• The company's quarterly earnings exceeded estimates, with reported earnings of $0.15 per share against a consensus of $0.05, showcasing a revenue increase of 49.9% year-over-year.
• Insiders recently sold shares of Ambarella, with VP Chi-Hong Ju selling 1,168 shares and CTO Leslie Kohn selling 2,249 shares, indicating a minor decrease in their ownership stakes.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has earned an average rating of "Moderate Buy" from the thirteen ratings firms that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation, eight have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $93.8750.

A number of equities research analysts have weighed in on the company. Oppenheimer reiterated a "market perform" rating on shares of Ambarella in a report on Friday, August 29th. Northland Securities lifted their target price on Ambarella from $75.00 to $95.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. Morgan Stanley lifted their target price on Ambarella from $80.00 to $96.00 and gave the stock an "overweight" rating in a report on Friday, August 29th. Stifel Nicolaus lifted their target price on Ambarella from $80.00 to $90.00 and gave the stock a "buy" rating in a report on Friday, August 29th. Finally, BNP Paribas upgraded Ambarella to a "strong-buy" rating in a report on Friday, August 29th.

Ambarella Price Performance

Shares of AMBA opened at $72.88 on Friday. Ambarella has a 1 year low of $38.86 and a 1 year high of $93.44. The company has a market capitalization of $3.11 billion, a price-to-earnings ratio of -34.54 and a beta of 2.10. The business has a 50-day moving average of $76.89 and a 200-day moving average of $63.47.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.10. Ambarella had a negative return on equity of 14.73% and a negative net margin of 25.46%.The company had revenue of $95.51 million during the quarter, compared to the consensus estimate of $90.01 million. During the same period last year, the company earned ($0.13) earnings per share. The firm's revenue was up 49.9% compared to the same quarter last year. Ambarella has set its Q3 2026 guidance at EPS. As a group, sell-side analysts anticipate that Ambarella will post -2.81 EPS for the current year.

Insiders Place Their Bets

In other Ambarella news, VP Chi-Hong Ju sold 1,168 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total value of $92,774.24. Following the completion of the sale, the vice president owned 170,087 shares of the company's stock, valued at approximately $13,510,010.41. This trade represents a 0.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CTO Leslie Kohn sold 2,249 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $79.43, for a total value of $178,638.07. Following the completion of the sale, the chief technology officer directly owned 977,428 shares of the company's stock, valued at $77,637,106.04. This trade represents a 0.23% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 24,014 shares of company stock valued at $1,965,658 in the last 90 days. Company insiders own 5.30% of the company's stock.

Institutional Investors Weigh In On Ambarella

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Ambarella by 3.2% in the first quarter. Vanguard Group Inc. now owns 4,848,305 shares of the semiconductor company's stock valued at $244,015,000 after acquiring an additional 152,181 shares during the period. State Street Corp grew its stake in Ambarella by 8.9% in the second quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock valued at $122,562,000 after acquiring an additional 151,694 shares during the period. The Manufacturers Life Insurance Company boosted its position in shares of Ambarella by 4.0% during the second quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company's stock valued at $90,609,000 after buying an additional 52,954 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Ambarella by 88.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,232,272 shares of the semiconductor company's stock valued at $62,020,000 after buying an additional 579,917 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Ambarella by 3.0% during the second quarter. Geode Capital Management LLC now owns 976,281 shares of the semiconductor company's stock valued at $64,505,000 after buying an additional 28,371 shares during the last quarter. Institutional investors and hedge funds own 82.09% of the company's stock.

Ambarella Company Profile

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

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