Ambarella (NASDAQ:AMBA) Shares Gap Down on Analyst Downgrade

Shares of Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) gapped down before the market opened on Friday after Needham & Company LLC lowered their price target on the stock from $110.00 to $90.00. The stock had previously closed at $62.00, but opened at $59.10. Needham & Company LLC currently has a buy rating on the stock. Ambarella shares last traded at $52.53, with a volume of 159,628 shares traded.

A number of other research analysts have also issued reports on the company. Morgan Stanley reduced their price target on Ambarella from $90.00 to $80.00 and set an "overweight" rating for the company in a research report on Tuesday, May 27th. Rosenblatt Securities boosted their price target on Ambarella from $87.00 to $95.00 and gave the stock a "buy" rating in a research report on Friday. Stifel Nicolaus cut their price objective on Ambarella from $100.00 to $80.00 and set a "buy" rating for the company in a report on Thursday, April 17th. Finally, Wall Street Zen upgraded Ambarella from a "sell" rating to a "hold" rating in a report on Friday, February 28th. Five investment 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, Ambarella currently has a consensus rating of "Moderate Buy" and an average target price of $84.55.

Insider Transactions at Ambarella

In other news, CTO Leslie Kohn sold 1,584 shares of the business's stock in a transaction on Tuesday, March 18th. The stock was sold at an average price of $55.02, for a total transaction of $87,151.68. Following the sale, the chief technology officer now directly owns 981,392 shares of the company's stock, valued at $53,996,187.84. The trade was a 0.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO John Alexander Young sold 2,103 shares of the company's stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $55.02, for a total value of $115,707.06. Following the transaction, the chief financial officer now directly owns 113,886 shares in the company, valued at $6,266,007.72. The trade was a 1.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 9,328 shares of company stock valued at $513,467 over the last three months. Company insiders own 5.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Skandinaviska Enskilda Banken AB publ raised its position in Ambarella by 68.7% during the fourth quarter. Skandinaviska Enskilda Banken AB publ now owns 452 shares of the semiconductor company's stock valued at $32,000 after buying an additional 184 shares during the period. Aster Capital Management DIFC Ltd acquired a new position in Ambarella during the fourth quarter valued at $37,000. Sterling Capital Management LLC raised its position in Ambarella by 629.3% during the fourth quarter. Sterling Capital Management LLC now owns 598 shares of the semiconductor company's stock valued at $43,000 after buying an additional 516 shares during the period. Advisors Asset Management Inc. raised its position in Ambarella by 44.1% during the first 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 during the period. Finally, Banque Transatlantique SA acquired a new position in Ambarella during the first quarter valued at $50,000. 82.09% of the stock is owned by institutional investors and hedge funds.

Ambarella Stock Down 16.6%

The stock has a market capitalization of $2.19 billion, a price-to-earnings ratio of -13.40 and a beta of 1.99. The firm has a 50-day moving average of $51.29 and a two-hundred day moving average of $63.42.

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.