Ambarella (NASDAQ:AMBA) Stock Price Down 7.3% - What's Next?

Key Points

• Ambarella's shares have fallen by 7.3%, trading at approximately $76.48, significantly below its previous close of $82.48.
• Analysts have upgraded their target prices for Ambarella, with most setting targets between $90.00 and $100.00, reflecting a consensus rating of "Moderate Buy."
• Insider selling occurred as a director sold 1,000 shares at an average price of $62.58, decreasing their ownership by 2.48%.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) fell 7.3% during mid-day trading on Tuesday . The company traded as low as $76.58 and last traded at $76.48. 277,115 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 868,828 shares. The stock had previously closed at $82.48.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on AMBA. Summit Insights upgraded shares of Ambarella from a "hold" rating to a "buy" rating in a report on Friday, August 29th. Morgan Stanley lifted their price target on shares of Ambarella from $80.00 to $96.00 and gave the company an "overweight" rating in a report on Friday, August 29th. Oppenheimer reiterated a "market perform" rating on shares of Ambarella in a report on Friday, August 29th. Roth Capital reiterated a "neutral" rating on shares of Ambarella in a report on Friday, August 29th. Finally, Bank of America lifted their price target on shares of Ambarella from $63.00 to $90.00 and gave the company a "neutral" rating in a report on Friday, August 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $93.88.

Ambarella Trading Up 2.0%

The firm has a market capitalization of $3.54 billion, a PE ratio of -39.26 and a beta of 2.09. The business's 50 day simple moving average is $69.00 and its 200 day simple moving average is $59.55.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.10. Ambarella had a negative net margin of 25.46% and a negative return on equity of 14.82%. The business had revenue of $95.51 million during the quarter, compared to analysts' expectations of $90.01 million. During the same period last year, the company posted ($0.13) EPS. The business's revenue was up 49.9% on a year-over-year basis. Ambarella has set its Q3 2026 guidance at EPS. Analysts forecast that Ambarella, Inc. will post -2.81 earnings per share for the current year.

Insider Activity at Ambarella

In related news, Director Christopher B. Paisley sold 1,000 shares of Ambarella stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $62.58, for a total transaction of $62,580.00. Following the completion of the transaction, the director directly owned 39,281 shares of the company's stock, valued at approximately $2,458,204.98. The trade was a 2.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 5.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Ambarella

A number of large investors have recently made changes to their positions in the company. Total Investment Management Inc. purchased a new position in shares of Ambarella during the 2nd quarter worth about $30,000. Cim Investment Management Inc. boosted its stake in shares of Ambarella by 100.7% during the 2nd quarter. Cim Investment Management Inc. now owns 8,698 shares of the semiconductor company's stock worth $604,000 after purchasing an additional 4,365 shares during the period. State of Wyoming purchased a new position in shares of Ambarella during the 2nd quarter worth about $63,000. Tower Research Capital LLC TRC boosted its stake in shares of Ambarella by 1,597.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,924 shares of the semiconductor company's stock worth $457,000 after purchasing an additional 6,516 shares during the period. Finally, State of Tennessee Department of Treasury boosted its stake in shares of Ambarella by 230.8% during the 2nd quarter. State of Tennessee Department of Treasury now owns 9,653 shares of the semiconductor company's stock worth $638,000 after purchasing an additional 6,735 shares during the period. 82.09% of the stock is owned by hedge funds and other institutional investors.

Ambarella Company Profile

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.