Ambarella (NASDAQ:AMBA) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Ambarella's shares reached a new 52-week high following an upgrade from Rosenblatt Securities, which raised its price target to $100.00 while maintaining a buy rating.
• Multiple analysts have recently adjusted their price targets for Ambarella, with Bank of America setting a new target at $90.00, indicating high confidence in the company's performance.
• Insider and institutional investor activity has increased, with notable buy increases, indicating strong market interest and support for the stock.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report)'s stock price reached a new 52-week high on Friday after Northland Securities raised their price target on the stock from $75.00 to $95.00. Northland Securities currently has an outperform rating on the stock. Ambarella traded as high as $93.44 and last traded at $84.61, with a volume of 1615280 shares. The stock had previously closed at $70.63.

AMBA has been the topic of a number of other reports. Needham & Company LLC lifted their price objective on Ambarella from $90.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, August 29th. Stifel Nicolaus lifted their price objective on Ambarella from $80.00 to $90.00 and gave the stock a "buy" rating in a research note on Friday, August 29th. Susquehanna lifted their price objective on Ambarella from $80.00 to $90.00 and gave the stock a "positive" rating in a research note on Tuesday, July 22nd. Morgan Stanley lifted their price objective on Ambarella from $80.00 to $96.00 and gave the stock an "overweight" rating in a research note on Friday, August 29th. Finally, Summit Insights raised Ambarella from a "hold" rating to a "buy" rating in a research note on Friday, August 29th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $93.88.

Insider Buying and Selling at Ambarella

In other news, Director Christopher B. Paisley sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $62.58, for a total transaction of $62,580.00. Following the transaction, the director directly owned 39,281 shares of the company's stock, valued at $2,458,204.98. This represents a 2.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 5.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Ambarella

Institutional investors have recently modified their holdings of the company. Rhumbline Advisers raised its position in shares of Ambarella by 4.0% during the first quarter. Rhumbline Advisers now owns 58,571 shares of the semiconductor company's stock worth $2,948,000 after purchasing an additional 2,249 shares during the period. Janney Montgomery Scott LLC raised its position in shares of Ambarella by 238.3% during the first quarter. Janney Montgomery Scott LLC now owns 13,474 shares of the semiconductor company's stock worth $678,000 after purchasing an additional 9,491 shares during the period. GAMMA Investing LLC raised its position in shares of Ambarella by 6,804.3% during the first quarter. GAMMA Investing LLC now owns 16,156 shares of the semiconductor company's stock worth $813,000 after purchasing an additional 15,922 shares during the period. Principal Financial Group Inc. raised its position in shares of Ambarella by 61.8% during the first quarter. Principal Financial Group Inc. now owns 25,794 shares of the semiconductor company's stock worth $1,298,000 after purchasing an additional 9,857 shares during the period. Finally, PNC Financial Services Group Inc. raised its position in shares of Ambarella by 133.0% during the first quarter. PNC Financial Services Group Inc. now owns 4,317 shares of the semiconductor company's stock worth $217,000 after purchasing an additional 2,464 shares during the period. 82.09% of the stock is owned by institutional investors and hedge funds.

Ambarella Stock Down 1.4%

The company has a market capitalization of $3.35 billion, a price-to-earnings ratio of -37.41 and a beta of 2.09. The business has a 50-day moving average price of $68.16 and a two-hundred day moving average price of $59.38.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings results on Thursday, August 28th. The semiconductor company reported $0.15 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.10. The business had revenue of $95.51 million during the quarter, compared to analyst estimates of $90.01 million. Ambarella had a negative return on equity of 14.82% and a negative net margin of 25.46%.Ambarella's quarterly revenue was up 49.9% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.13) EPS. Ambarella has set its Q3 2026 guidance at EPS. On average, sell-side analysts anticipate that Ambarella, Inc. will post -2.81 EPS for the current fiscal year.

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.