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

Key Points

• Fourteen analysts give Ambarella a consensus rating of Moderate Buy (2 strong buy, 7 buy, 4 hold, 1 sell) with an average 12‑month price target of $96.00.
• Ambarella beat EPS in its latest quarter ($0.13 vs. $0.10 expected) and revenue rose 20.1% year‑over‑year, but the company still has a negative net margin (19.42%) and negative ROE, with analysts projecting -1.27 EPS for the current year.
• Insiders sold roughly 103,899 shares (~$5.92M) last quarter while institutional investors own 82.09% of the stock, with large holders like Vanguard and State Street increasing their stakes.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has received an average recommendation of "Moderate Buy" from the fourteen research firms that are covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, seven have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $96.00.

Several research analysts have recently weighed in on AMBA shares. Rosenblatt Securities reiterated a "buy" rating and set a $115.00 price target on shares of Ambarella in a research note on Monday, March 23rd. Consumer Edge restated a "buy" rating on shares of Ambarella in a research note on Tuesday, February 24th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Ambarella in a research note on Wednesday, January 21st.

Ambarella Price Performance

Shares of Ambarella stock opened at $63.75 on Wednesday. The company's fifty day simple moving average is $57.16 and its 200-day simple moving average is $68.99. The stock has a market capitalization of $2.79 billion, a PE ratio of -35.81 and a beta of 2.01. Ambarella has a 1-year low of $45.20 and a 1-year high of $96.69.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.03. The business had revenue of $100.87 million for the quarter, compared to analysts' expectations of $100.17 million. Ambarella had a negative net margin of 19.42% and a negative return on equity of 12.16%. The company's revenue was up 20.1% compared to the same quarter last year. During the same quarter last year, the company posted $0.11 EPS. As a group, research analysts anticipate that Ambarella will post -1.27 EPS for the current year.

Insider Activity

In related news, insider Chan W. Lee sold 6,729 shares of Ambarella stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total transaction of $355,089.33. Following the transaction, the insider owned 156,370 shares in the company, valued at approximately $8,251,644.90. The trade was a 4.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO John Alexander Young sold 4,577 shares of Ambarella stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total transaction of $241,528.29. Following the transaction, the chief financial officer owned 117,072 shares in the company, valued at approximately $6,177,889.44. This trade represents a 3.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 103,899 shares of company stock worth $5,921,677 in the last quarter. Corporate insiders own 5.70% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Ambarella by 6.0% during the 4th quarter. Vanguard Group Inc. now owns 5,480,285 shares of the semiconductor company's stock valued at $388,223,000 after buying an additional 311,649 shares in the last quarter. State Street Corp lifted its stake in Ambarella by 8.9% in the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock worth $122,562,000 after purchasing an additional 151,694 shares in the last quarter. Jericho Capital Asset Management L.P. lifted its stake in Ambarella by 30.8% in the 4th quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company's stock worth $112,429,000 after purchasing an additional 373,734 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Ambarella by 4.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company's stock worth $90,609,000 after purchasing an additional 52,954 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in Ambarella by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company's stock worth $72,305,000 after purchasing an additional 35,510 shares in the last quarter. Hedge funds and other institutional investors own 82.09% of the company's stock.

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.

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