Ambarella (NASDAQ:AMBA) Shares Up 6.7% - Here's What Happened

Key Points

• Shares rose 6.7% to $65.47 on Friday (intraday high $66) while volume was light at ~129,999 shares, an ~86% drop from the stock's average daily volume.
• Quarterly results modestly beat estimates: Ambarella posted $0.13 EPS vs. $0.10 expected and $100.87M revenue (+20.1% YoY), but still reports a negative net margin and return on equity, with analysts forecasting -1.27 EPS for the fiscal year.
• Analyst sentiment is mixed but tilted positive: MarketBeat shows a "Moderate Buy" consensus with an average price target of $96, reflecting a range from Strong Buy to Sell among analysts.

Shares of Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) were up 6.7% during trading on Friday . The stock traded as high as $66.00 and last traded at $65.4690. Approximately 129,999 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 900,546 shares. The stock had previously closed at $61.34.

Analyst Upgrades and Downgrades

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

Ambarella Price Performance

The firm has a market capitalization of $2.92 billion, a price-to-earnings ratio of -37.39 and a beta of 2.01. The business's 50 day moving average price is $57.22 and its 200-day moving average price is $69.52.

Ambarella (NASDAQ:AMBA - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.03. The company had revenue of $100.87 million for the quarter, compared to analyst estimates of $100.17 million. Ambarella had a negative return on equity of 12.16% and a negative net margin of 19.42%.The firm's revenue for the quarter was up 20.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.11 EPS. As a group, analysts expect that Ambarella, Inc. will post -1.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO John Alexander Young sold 1,971 shares of the company's stock in a transaction on Tuesday, April 21st. The shares were sold at an average price of $60.00, for a total transaction of $118,260.00. Following the transaction, the chief financial officer directly owned 117,623 shares of the company's stock, valued at $7,057,380. This represents a 1.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Chan W. Lee sold 3,641 shares of the firm's stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $54.14, for a total transaction of $197,123.74. Following the completion of the sale, the insider owned 160,049 shares of the company's stock, valued at $8,665,052.86. This trade represents a 2.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 103,899 shares of company stock worth $5,921,677 in the last ninety days. 5.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Ambarella

A number of institutional investors and hedge funds have recently modified their holdings of AMBA. EverSource Wealth Advisors LLC increased its stake in Ambarella by 362.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 326 shares in the last quarter. Advisory Services Network LLC acquired a new stake in Ambarella in the third quarter valued at $33,000. Steward Partners Investment Advisory LLC grew its holdings in Ambarella by 162.5% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company's stock valued at $37,000 after purchasing an additional 325 shares during the last quarter. CoreCap Advisors LLC purchased a new position in shares of Ambarella in the third quarter valued at $43,000. Finally, Advisors Asset Management Inc. raised its stake in shares of Ambarella by 44.1% during the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company's stock worth $47,000 after buying an additional 286 shares during the last quarter. Institutional investors and hedge funds own 82.09% of the company's stock.

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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