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

Key Points

• Analysts give Ambarella a “Moderate Buy” consensus: Seven analysts rate it a buy, one a strong buy, five a hold and one a sell. The average 12-month price target is $101.13.
• Ambarella reported quarterly revenue of $100.36 million, up 16.9% year over year, and earnings of $0.11 per share, in line with estimates; however, the company remains unprofitable with a negative 17.18% net margin.
• The stock opened at $83.79, compared with a 52-week range of $48.30 to $96.69. Insiders have sold $7.59 million worth of shares over the past 90 days, while institutional investors own 82.09% of the company.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has earned an average recommendation of "Moderate Buy" from the fourteen brokerages that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $101.1250.

Several equities research analysts have recently issued reports on the company. Weiss Ratings upgraded Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, July 10th. Northland Securities set a $101.00 price target on shares of Ambarella in a research note on Wednesday, June 17th. Consumer Edge restated a "buy" rating on shares of Ambarella in a report on Friday, May 22nd. Summit Insights cut shares of Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th. Finally, Rosenblatt Securities raised their target price on Ambarella from $115.00 to $120.00 in a report on Tuesday, June 30th.

Ambarella Stock Performance

AMBA stock opened at $83.79 on Friday. The firm has a 50 day simple moving average of $71.90 and a 200 day simple moving average of $66.92. Ambarella has a 52 week low of $48.30 and a 52 week high of $96.69. The stock has a market cap of $3.68 billion, a P/E ratio of -52.04 and a beta of 2.12.

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 for the quarter, hitting analysts' consensus estimates of $0.11. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The business had revenue of $100.36 million for the quarter, compared to the consensus estimate of $100.12 million. During the same period in the prior year, the business posted $0.07 earnings per share. Ambarella's revenue for the quarter was up 16.9% compared to the same quarter last year. Sell-side analysts predict that Ambarella will post -1.13 EPS for the current year.

Insider Buying and Selling at Ambarella

In related news, insider Chan W. Lee sold 2,951 shares of the company's stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the sale, the insider directly owned 157,098 shares of the company's stock, valued at approximately $10,662,241.26. This represents a 1.84% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Chi-Hong Ju sold 10,000 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of the sale, the vice president owned 155,924 shares in the company, valued at approximately $13,852,288.16. The trade was a 6.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 91,419 shares of company stock worth $7,591,700 in the last 90 days. Company insiders own 4.50% of the company's stock.

Institutional Trading of Ambarella

Several hedge funds and other institutional investors have recently bought and sold shares of AMBA. Financial Management Professionals Inc. acquired a new position in shares of Ambarella during the second quarter valued at about $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in Ambarella during the second quarter valued at about $34,000. Advisory Services Network LLC bought a new position in Ambarella during the third quarter valued at about $33,000. EverSource Wealth Advisors LLC raised its holdings in Ambarella by 362.2% in the 2nd 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 in the last quarter. Finally, Essential Partners LLC grew its holdings in shares of Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 228 shares in the last quarter. 82.09% of the stock is currently owned by institutional investors and hedge funds.

About Ambarella

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.

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