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

Key Points

• Ambarella, Inc. has received an average rating of "Moderate Buy" from thirteen brokerages, with a target price of $93.8750.
• COO Chan W. Lee and VP Chi-Hong Ju sold shares on September 17th, reflecting a 1.51% and 0.68% decrease in their respective holdings.
• The company reported a 49.9% increase in quarterly revenue year-over-year, with earnings of $0.15 EPS surpassing analysts' expectations.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has been given an average rating of "Moderate Buy" by the thirteen brokerages that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $93.8750.

A number of research firms have recently commented on AMBA. Stifel Nicolaus increased their target price on Ambarella from $80.00 to $90.00 and gave the company a "buy" rating in a research report on Friday, August 29th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ambarella in a research report on Wednesday. Susquehanna increased their price target on Ambarella from $80.00 to $90.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Northland Securities increased their price target on Ambarella from $75.00 to $95.00 and gave the company an "outperform" 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.

Insider Activity at Ambarella

In related news, COO Chan W. Lee sold 1,947 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total transaction of $154,650.21. Following the sale, the chief operating officer owned 126,972 shares in the company, valued at approximately $10,085,385.96. This represents a 1.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Chi-Hong Ju sold 1,168 shares of the stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $79.43, for a total value of $92,774.24. Following the sale, the vice president owned 170,087 shares in the company, valued at $13,510,010.41. The trade was a 0.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,014 shares of company stock worth $1,965,658 in the last ninety days. Corporate insiders own 5.30% of the company's stock.

Institutional Trading of Ambarella

Hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its stake in Ambarella by 362.2% in the second 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. Total Investment Management Inc. purchased a new stake in Ambarella in the second quarter worth $30,000. Advisors Asset Management Inc. increased its stake in Ambarella by 44.1% in the first quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company's stock worth $47,000 after purchasing an additional 286 shares during the period. Virtus Advisers LLC purchased a new stake in Ambarella in the second quarter worth $49,000. Finally, Banque Transatlantique SA bought a new position in shares of Ambarella during the 1st quarter worth $50,000. Hedge funds and other institutional investors own 82.09% of the company's stock.

Ambarella Stock Performance

NASDAQ AMBA opened at $72.88 on Friday. The company has a market capitalization of $3.11 billion, a P/E ratio of -34.54 and a beta of 2.10. Ambarella has a one year low of $38.86 and a one year high of $93.44. The stock has a 50 day moving average price of $76.89 and a 200-day moving average price of $63.47.

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

About Ambarella

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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