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

Key Points

• Analysts assign a consensus rating of Moderate Buy on Ambarella from 14 covering firms, with an average 12‑month price target of $96.00 (1 sell, 4 hold, 7 buy, 2 strong buy).
• Ambarella beat the latest quarter estimates (EPS $0.13 vs $0.10; revenue $100.87M, +20.1% YoY) but remains unprofitable with a negative net margin (~19.4%) and analysts forecast a -$2.81 EPS for the current year.
• Insiders have been net sellers recently (including the CEO’s sale of 50,000 shares), with 109,656 shares sold in the last 90 days, while the stock trades near $50.54—well below its 52‑week high of $96.69—despite ~82% institutional ownership.

Shares of Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the fourteen analysts that are covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, four have issued a hold rating, seven have given a buy rating and two have assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $96.00.

AMBA has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ambarella in a report on Wednesday, January 21st. Consumer Edge reissued a "buy" rating on shares of Ambarella in a report on Tuesday, February 24th. Wall Street Zen cut shares of Ambarella from a "buy" rating to a "hold" rating in a report on Saturday, December 27th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $115.00 price objective on shares of Ambarella in a research report on Monday, March 23rd.

Ambarella Price Performance

Shares of NASDAQ AMBA opened at $50.54 on Friday. The company has a market cap of $2.21 billion, a P/E ratio of -28.39 and a beta of 2.01. Ambarella has a 52 week low of $38.86 and a 52 week high of $96.69. The business has a 50-day simple moving average of $59.52 and a two-hundred day simple moving average of $72.20.

Ambarella (NASDAQ:AMBA - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.03. Ambarella had a negative return on equity of 12.16% and a negative net margin of 19.42%.The firm had revenue of $100.87 million for the quarter, compared to analysts' expectations of $100.17 million. During the same period in the prior year, the business posted $0.11 earnings per share. The company's revenue was up 20.1% on a year-over-year basis. Equities research analysts anticipate that Ambarella will post -2.81 EPS for the current year.

Insiders Place Their Bets

In other news, insider Chan W. Lee sold 6,729 shares of Ambarella stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $355,089.33. Following the completion of the sale, the insider owned 156,370 shares in the company, valued at approximately $8,251,644.90. This trade represents a 4.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Feng-Ming Wang sold 50,000 shares of the business's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $60.80, for a total value of $3,040,000.00. Following the transaction, the chief executive officer directly owned 768,979 shares of the company's stock, valued at $46,753,923.20. The trade was a 6.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 109,656 shares of company stock valued at $6,387,499 in the last ninety days. Corporate insiders own 5.30% of the company's stock.

Institutional Investors Weigh In On Ambarella

Several hedge funds have recently bought and sold shares of AMBA. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in Ambarella by 290.4% in the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 58,428 shares of the semiconductor company's stock worth $4,821,000 after purchasing an additional 43,461 shares during the period. AIGH Capital Management LLC bought a new position in shares of Ambarella in the third quarter worth approximately $4,126,000. SG Capital Management LLC increased its stake in shares of Ambarella by 23.0% in the third quarter. SG Capital Management LLC now owns 232,713 shares of the semiconductor company's stock worth $19,203,000 after buying an additional 43,492 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Ambarella by 899.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 112,659 shares of the semiconductor company's stock worth $7,443,000 after buying an additional 101,389 shares during the period. Finally, Handelsbanken Fonder AB raised its holdings in Ambarella by 537.3% during the 3rd quarter. Handelsbanken Fonder AB now owns 169,775 shares of the semiconductor company's stock valued at $14,010,000 after buying an additional 143,136 shares during the last quarter. 82.09% of the stock is currently owned by institutional investors.

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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