Ambarella (NASDAQ:AMBA) Announces Quarterly Earnings Results, Misses Expectations By $0.59 EPS

Ambarella (NASDAQ:AMBA - Get Free Report) posted its quarterly earnings results on Thursday. The semiconductor company reported ($0.55) earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($0.59), Zacks reports. Ambarella had a negative return on equity of 23.52% and a negative net margin of 62.38%. The firm had revenue of $85.87 million for the quarter, compared to analysts' expectations of $84.01 million. During the same period last year, the business earned ($0.26) earnings per share. The firm's revenue for the quarter was up 57.7% on a year-over-year basis. Ambarella updated its Q2 2026 guidance to EPS.

Ambarella Trading Down 16.6%

AMBA traded down $10.29 during midday trading on Friday, reaching $51.71. The company's stock had a trading volume of 4,453,032 shares, compared to its average volume of 717,970. The stock has a market cap of $2.19 billion, a P/E ratio of -13.40 and a beta of 1.99. The company has a fifty day simple moving average of $51.29 and a 200 day simple moving average of $63.38. Ambarella has a twelve month low of $38.86 and a twelve month high of $85.15.

Insider Buying and Selling at Ambarella

In other Ambarella news, Director Christopher B. Paisley sold 500 shares of the firm's stock in a transaction that occurred on Tuesday, March 25th. The stock was sold at an average price of $55.50, for a total value of $27,750.00. Following the sale, the director now owns 40,281 shares of the company's stock, valued at $2,235,595.50. This trade represents a 1.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Christopher Day sold 479 shares of the firm's stock in a transaction that occurred on Tuesday, March 18th. The stock was sold at an average price of $55.02, for a total value of $26,354.58. Following the completion of the sale, the vice president now owns 15,441 shares of the company's stock, valued at $849,563.82. This represents a 3.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 9,328 shares of company stock valued at $513,467 in the last 90 days. 5.30% of the stock is currently owned by insiders.

Institutional Trading of Ambarella

Hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. lifted 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 worth $47,000 after acquiring an additional 286 shares during the period. Empowered Funds LLC lifted 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 worth $344,000 after acquiring an additional 1,758 shares during the period. Intech Investment Management LLC lifted 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 worth $1,288,000 after acquiring an additional 8,306 shares during the period. Royal Bank of Canada lifted 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 worth $3,258,000 after acquiring an additional 1,307 shares during the period. Finally, AQR Capital Management LLC lifted 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 worth $4,272,000 after acquiring an additional 47,414 shares during the period. Institutional investors own 82.09% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on AMBA shares. Morgan Stanley cut their price target on Ambarella from $90.00 to $80.00 and set an "overweight" rating for the company in a research note on Tuesday. Summit Insights raised Ambarella to a "hold" rating in a report on Thursday. Needham & Company LLC lowered their price objective on Ambarella from $110.00 to $90.00 and set a "buy" rating on the stock in a report on Friday. Stifel Nicolaus lowered their price objective on Ambarella from $100.00 to $80.00 and set a "buy" rating on the stock in a report on Thursday, April 17th. Finally, Rosenblatt Securities increased their price objective on Ambarella from $87.00 to $95.00 and gave the company a "buy" rating in a report on Friday. Six equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $82.08.

About Ambarella

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.