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

Key Points

• Wall Street sentiment is cautiously positive: Ambarella has a consensus analyst rating of “Moderate Buy” from 14 analysts, with an average 12-month price target of about $101.13.
• Recent earnings were in line with expectations: The semiconductor company reported EPS of $0.11, matching estimates, while revenue came in at $100.36 million, slightly above forecasts and up 16.9% year over year.
• Insiders have been selling shares: CEO Feng-Ming Wang and CFO John Alexander Young both sold stock recently, and insiders have sold 93,390 shares over the last 90 days.

Shares of Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) have been assigned an average rating of "Moderate Buy" from the fourteen analysts that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, five have given a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $101.1250.

Several equities research analysts have recently weighed in on the stock. Rosenblatt Securities boosted their target price on shares of Ambarella from $115.00 to $120.00 in a research report on Tuesday, June 30th. Bank of America lifted their price target on Ambarella from $72.00 to $96.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Stifel Nicolaus set a $106.00 price objective on Ambarella in a report on Friday, May 29th. Northland Securities set a $101.00 price objective on Ambarella in a research note on Wednesday, June 17th. Finally, Summit Insights downgraded Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th.

Ambarella Stock Performance

AMBA stock opened at $77.30 on Monday. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69. The company has a market capitalization of $3.39 billion, a P/E ratio of -48.01 and a beta of 2.11. The firm has a 50 day simple moving average of $75.18 and a 200-day simple moving average of $66.67.

Ambarella (NASDAQ:AMBA - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) 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 firm had revenue of $100.36 million for the quarter, compared to analysts' expectations of $100.12 million. During the same period in the prior year, the company posted $0.07 earnings per share. The firm's quarterly revenue was up 16.9% on a year-over-year basis. On average, research analysts predict that Ambarella will post -1.13 EPS for the current year.

Insider Buying and Selling at Ambarella

In related news, CEO Feng-Ming Wang sold 16,250 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $90.08, for a total transaction of $1,463,800.00. Following the transaction, the chief executive officer directly owned 773,607 shares in the company, valued at $69,686,518.56. This trade represents a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John Alexander Young sold 5,033 shares of Ambarella stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total transaction of $339,928.82. Following the completion of the transaction, the chief financial officer directly owned 112,590 shares of the company's stock, valued at approximately $7,604,328.60. This represents 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 93,390 shares of company stock worth $7,709,960. 4.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. GSA Capital Partners LLP grew its holdings in shares of Ambarella by 145.2% during the fourth quarter. GSA Capital Partners LLP now owns 24,800 shares of the semiconductor company's stock valued at $1,757,000 after purchasing an additional 14,685 shares during the last quarter. Legal & General Group Plc lifted its holdings in shares of Ambarella by 18.4% in the 4th quarter. Legal & General Group Plc now owns 614,017 shares of the semiconductor company's stock worth $43,497,000 after purchasing an additional 95,218 shares during the last quarter. SBI Okasan Asset Management Co.Ltd. bought a new stake in shares of Ambarella in the 4th quarter worth approximately $1,345,000. Leonteq Securities AG acquired a new position in Ambarella during the 4th quarter valued at approximately $1,903,000. Finally, Handelsbanken Fonder AB boosted its position in Ambarella by 84.0% during the 4th quarter. Handelsbanken Fonder AB now owns 312,326 shares of the semiconductor company's stock valued at $22,125,000 after purchasing an additional 142,551 shares during the period. 82.09% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.