Ambarella (NASDAQ:AMBA) Share Price Passes Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Price breach: Ambarella's shares slid below their 200‑day moving average of $70.73, trading as low as $52.48 and last at $54.30, signaling recent technical weakness.
• Analyst view: The consensus rating is a Moderate Buy with an average price target of $96, though individual ratings are mixed (2 Strong Buy, 7 Buy, 4 Hold, 1 Sell).
• Fundamentals and insider activity: The company beat quarterly EPS ($0.13 vs. $0.10) and revenue ($100.87M, +20.1% YoY) but remains unprofitable on margins and is forecast to report negative EPS for the year; insiders sold ~101,928 shares in the past 90 days.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report)'s share price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $70.73 and traded as low as $52.48. Ambarella shares last traded at $54.30, with a volume of 668,393 shares changing hands.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ambarella in a report on Wednesday, January 21st. Consumer Edge restated a "buy" rating on shares of Ambarella in a research note on Tuesday, February 24th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $115.00 target price on shares of Ambarella in a research report on Monday, March 23rd. Finally, Wall Street Zen downgraded Ambarella from a "buy" rating to a "hold" rating in a research note on Saturday, December 27th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Ambarella currently has a consensus rating of "Moderate Buy" and a consensus price target of $96.00.

Ambarella Price Performance

The company has a market capitalization of $2.38 billion, a P/E ratio of -30.51 and a beta of 2.01. The stock's fifty day simple moving average is $57.97 and its 200-day simple moving average is $70.73.

Ambarella (NASDAQ:AMBA - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $100.87 million for the quarter, compared to analyst estimates of $100.17 million. During the same period in the previous year, the company posted $0.11 earnings per share. The firm's revenue for the quarter was up 20.1% on a year-over-year basis. On average, research analysts predict that Ambarella, Inc. will post -2.81 earnings per share for the current year.

Insiders Place Their Bets

In other news, VP Chi-Hong Ju sold 4,729 shares of the firm's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total value of $249,549.33. Following the sale, the vice president owned 164,166 shares in the company, valued at approximately $8,663,039.82. This trade represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Chan W. Lee sold 6,729 shares of the business's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $355,089.33. Following the transaction, the insider directly owned 156,370 shares in the company, valued at $8,251,644.90. This trade represents a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 101,928 shares of company stock valued at $5,803,417. Corporate insiders own 5.70% of the company's stock.

Institutional Trading of Ambarella

A number of hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings 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 worth $388,223,000 after purchasing an additional 311,649 shares during the period. State Street Corp lifted its stake in shares of Ambarella by 8.9% in the second quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock valued at $122,562,000 after buying an additional 151,694 shares during the period. Jericho Capital Asset Management L.P. lifted its stake in shares of Ambarella by 30.8% in the fourth quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company's stock valued at $112,429,000 after buying an additional 373,734 shares during the period. The Manufacturers Life Insurance Company grew its position in Ambarella by 4.0% during the second quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company's stock worth $90,609,000 after buying an additional 52,954 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Ambarella by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company's stock worth $72,305,000 after buying an additional 35,510 shares in the last quarter. 82.09% of the stock is 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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