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

Key Points

• Ambarella, Inc. has a consensus rating of “Moderate Buy” from twelve brokerages, with one strong buy, eight buy, and three hold recommendations, and an average target price of $93.88.
• Recently, Ambarella reported earnings of $0.15 per share, exceeding analysts' expectations of $0.05, with a revenue of $95.51 million, up nearly 50% from the previous year.
• Institutional investors own a significant 82.09% of Ambarella’s stock, indicating strong confidence in the company’s future performance.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has received a consensus rating of "Moderate Buy" from the twelve brokerages that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $93.8750.

A number of research firms recently weighed in on AMBA. BNP Paribas raised Ambarella to a "strong-buy" rating in a research report on Friday, August 29th. Susquehanna raised their price target on shares of Ambarella from $80.00 to $90.00 and gave the stock a "positive" rating in a research note on Tuesday, July 22nd. Morgan Stanley raised their price target on shares of Ambarella from $80.00 to $96.00 and gave the stock an "overweight" rating in a research note on Friday, August 29th. Summit Insights upgraded shares of Ambarella from a "hold" rating to a "buy" rating in a research note on Friday, August 29th. Finally, Rosenblatt Securities raised their price target on shares of Ambarella from $95.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, August 29th.

Ambarella Stock Up 0.5%

AMBA stock opened at $80.77 on Tuesday. Ambarella has a twelve month low of $38.86 and a twelve month high of $93.44. The company has a market cap of $3.45 billion, a PE ratio of -38.28 and a beta of 2.08. The business's 50-day simple moving average is $70.99 and its 200 day simple moving average is $59.71.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its earnings results on Thursday, August 28th. The semiconductor company reported $0.15 earnings per share 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 business had revenue of $95.51 million for the quarter, compared to the consensus estimate of $90.01 million. During the same period last year, the business earned ($0.13) earnings per share. The firm's revenue for the quarter was up 49.9% compared to the same quarter last year. Ambarella has set its Q3 2026 guidance at EPS. On average, equities research analysts anticipate that Ambarella will post -2.81 EPS for the current year.

Insider Transactions at Ambarella

In other news, VP Yun-Lung Chen sold 8,492 shares of Ambarella stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $84.42, for a total value of $716,894.64. Following the completion of the transaction, the vice president owned 61,651 shares in the company, valued at approximately $5,204,577.42. The trade was a 12.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Christopher B. Paisley sold 1,000 shares of Ambarella stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $62.58, for a total transaction of $62,580.00. Following the completion of the transaction, the director owned 39,281 shares of the company's stock, valued at $2,458,204.98. This trade represents a 2.48% decrease in their position. The disclosure for this sale can be found here. 5.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC raised its stake in shares of Ambarella by 362.2% in the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 326 shares during the last quarter. Total Investment Management Inc. bought a new position in shares of Ambarella in the second quarter valued at approximately $30,000. Virtus Advisers LLC bought a new position in shares of Ambarella in the second quarter valued at approximately $49,000. Advisors Asset Management Inc. increased its holdings in shares of Ambarella by 44.1% in the first quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 286 shares in the last quarter. Finally, State of Wyoming acquired a new stake in shares of Ambarella in the second quarter valued at approximately $63,000. Institutional investors 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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