Ambarella (NASDAQ:AMBA) CFO Sells $38,400.00 in Stock

Key Points

• Ambarella CFO John Alexander Young sold 400 shares at $96.00 each, totaling $38,400, in a pre-arranged Rule 10b5-1 trade. After the sale, he still held 117,623 shares valued at about $11.29 million.
• The company’s first-quarter revenue rose 16.9% year over year to $100.36 million, and adjusted EPS of $0.11 matched analyst expectations. Ambarella also said its second-quarter revenue outlook of $105 million to $111 million was roughly in line with Wall Street estimates.
• Analysts remain generally constructive on the stock, with an average “Moderate Buy” rating and a $94.75 price target. Recent reports highlighted a long-term edge AI agreement with Hanwha that could eventually generate more than $800 million in potential revenue.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) CFO John Alexander Young sold 400 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $96.00, for a total transaction of $38,400.00. Following the sale, the chief financial officer owned 117,623 shares of the company's stock, valued at approximately $11,291,808. This represents a 0.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

John Alexander Young also recently made the following trade(s):

• On Tuesday, April 21st, John Alexander Young sold 1,971 shares of Ambarella stock. The stock was sold at an average price of $60.00, for a total transaction of $118,260.00.
• On Thursday, March 19th, John Alexander Young sold 3,038 shares of Ambarella stock. The stock was sold at an average price of $54.14, for a total transaction of $164,477.32.
• On Tuesday, March 17th, John Alexander Young sold 4,577 shares of Ambarella stock. The stock was sold at an average price of $52.77, for a total transaction of $241,528.29.

Ambarella Price Performance

Ambarella stock traded up $1.26 during midday trading on Thursday, hitting $91.84. The company's stock had a trading volume of 2,782,386 shares, compared to its average volume of 987,034. Ambarella, Inc. has a 1-year low of $48.30 and a 1-year high of $96.69. The company has a 50-day moving average price of $65.50 and a two-hundred day moving average price of $68.42. The company has a market cap of $4.03 billion, a price-to-earnings ratio of -51.60 and a beta of 2.17.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share for the quarter, hitting the consensus estimate of $0.11. Ambarella had a negative net margin of 19.42% and a negative return on equity of 12.16%. The business had revenue of $100.36 million during the quarter, compared to analysts' expectations of $100.12 million. During the same quarter in the previous year, the company earned $0.07 EPS. The business's revenue was up 16.9% on a year-over-year basis. Sell-side analysts forecast that Ambarella, Inc. will post -1.27 EPS for the current year.

Analysts Set New Price Targets

AMBA has been the topic of several analyst reports. Rosenblatt Securities reissued a "buy" rating and set a $115.00 target price on shares of Ambarella in a report on Tuesday. Stifel Nicolaus set a $90.00 price objective on shares of Ambarella in a research report on Friday, May 22nd. Finally, Consumer Edge reaffirmed a "buy" rating on shares of Ambarella in a research report on Friday, May 22nd. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $94.75.

Key Headlines Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella announced a long-term edge AI agreement with Hanwha that management says could generate more than $800 million in potential revenue over time, boosting confidence in its growth pipeline. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: The company’s first-quarter revenue increased 16.9% year over year to $100.4 million, showing continued demand for its edge AI semiconductor products. Ambarella, Inc. Announces First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Ambarella met earnings expectations with quarterly EPS of $0.11, and several reports noted it narrowly topped estimates, suggesting results were at least stable relative to forecasts. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Neutral Sentiment: The company’s second-quarter revenue guidance of $105 million to $111 million was roughly in line with Wall Street expectations, so the outlook was not a major surprise either way.
• Negative Sentiment: Despite the positive update, at least one market report said Ambarella stock fell after earnings, indicating investors may still be cautious about margins, profitability, or the near-term outlook. Edge AI Chipmaker Ambarella Narrowly Tops Q1 Estimates

Hedge Funds Weigh In On Ambarella

Several hedge funds and other institutional investors have recently made changes to their positions in AMBA. Royal Bank of Canada raised its position in shares of Ambarella by 2.1% in the 1st quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company's stock valued at $3,258,000 after buying an additional 1,307 shares in the last quarter. Advisors Asset Management Inc. raised its position in shares of Ambarella by 44.1% in the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company's stock valued at $47,000 after buying an additional 286 shares in the last quarter. AQR Capital Management LLC raised its position in shares of Ambarella by 126.6% in the 1st quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company's stock valued at $4,272,000 after buying an additional 47,414 shares in the last quarter. Empowered Funds LLC raised its position in shares of Ambarella by 34.6% in the 1st quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company's stock valued at $344,000 after buying an additional 1,758 shares in the last quarter. Finally, Intech Investment Management LLC raised its position in shares of Ambarella by 48.1% in the 1st quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company's stock valued at $1,288,000 after buying an additional 8,306 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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