Ambarella (NASDAQ:AMBA) Shares Pass Above 200-Day Moving Average - Here's Why

Key Points

• Ambarella shares rose above their 200-day moving average of $66.31, reaching $69.80 before closing at $68.23.
• Analysts have a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $101.12, although some firms have issued Hold or Sell-equivalent ratings.
• Ambarella met quarterly EPS expectations at $0.11 and reported $100.36 million in revenue, up 16.9% year over year; however, the company remains unprofitable with a negative net margin and return on equity.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $66.31 and traded as high as $69.80. Ambarella shares last traded at $68.23, with a volume of 1,880,934 shares traded.

Analyst Ratings Changes

Several analysts have issued reports on the company. Bank of America upped their target price on Ambarella from $72.00 to $96.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Stifel Nicolaus set a $106.00 price target on shares of Ambarella in a research note on Friday, May 29th. Summit Insights lowered shares of Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th. Weiss Ratings raised shares of Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, July 10th. Finally, Northland Securities set a $101.00 target price on shares of Ambarella in a report on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $101.12.

Ambarella Stock Performance

The company has a market cap of $2.99 billion, a P/E ratio of -42.38 and a beta of 2.11. The business has a 50 day moving average price of $73.21 and a two-hundred day moving average price of $66.31.

Ambarella (NASDAQ:AMBA - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.11. The business had revenue of $100.36 million for the quarter, compared to analyst estimates of $100.12 million. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.Ambarella's revenue for the quarter was up 16.9% compared to the same quarter last year. During the same period last year, the company earned $0.07 EPS. As a group, research analysts expect that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Activity

In related news, insider Chan W. Lee sold 2,951 shares of the company's stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the sale, the insider directly owned 157,098 shares in the company, valued at $10,662,241.26. This represents a 1.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO John Alexander Young sold 5,033 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the sale, the chief financial officer directly owned 112,590 shares of the company's stock, valued at $7,604,328.60. The trade was a 4.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 91,419 shares of company stock valued at $7,591,700. Corporate insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Ambarella

A number of hedge funds have recently modified their holdings of the company. Financial Management Professionals Inc. bought a new position in shares of Ambarella during the second quarter valued at about $32,000. Hennion & Walsh Asset Management Inc. grew its stake in shares of Ambarella by 24.4% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 11,121 shares of the semiconductor company's stock worth $954,000 after purchasing an additional 2,184 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Ambarella during the 2nd quarter valued at about $34,000. Red Spruce Capital LLC increased its holdings in Ambarella by 39.2% during the 2nd quarter. Red Spruce Capital LLC now owns 20,385 shares of the semiconductor company's stock valued at $1,749,000 after purchasing an additional 5,744 shares during the period. Finally, Central Pacific Bank Trust Division purchased a new position in Ambarella during the 2nd quarter valued at about $86,000. Hedge funds and other institutional investors own 82.09% of the company's stock.

Ambarella Company Profile

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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