Ambarella (NASDAQ:AMBA) Stock Price Down 4.3% - Time to Sell?

Key Points

• Ambarella shares fell 4.3% to about $82.32, but remain above their 50-day and 200-day moving averages. The company has a $3.66 billion market capitalization and a high beta of 2.12.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $101.12, although Summit Insights recently downgraded the stock to “Hold.”
• Ambarella’s latest quarterly results met expectations, with $0.11 earnings per share and $100.36 million in revenue, up 16.9% year over year. However, the company remains unprofitable, and insiders have sold 91,419 shares worth approximately $7.6 million over the past three months.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report)'s share price dropped 4.3% on Monday . The stock traded as low as $82.47 and last traded at $82.3170. Approximately 1,292,438 shares traded hands during trading, an increase of 0% from the average session volume of 1,286,148 shares. The stock had previously closed at $86.00.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Summit Insights downgraded shares of Ambarella from a "buy" rating to a "hold" rating in a research note on Friday, May 29th. Rosenblatt Securities increased their price objective on shares of Ambarella from $115.00 to $120.00 in a research report on Tuesday, June 30th. Northland Securities set a $101.00 price target on shares of Ambarella in a research report on Wednesday, June 17th. Bank of America raised their price target on shares of Ambarella from $72.00 to $96.00 and gave the company a "neutral" rating in a research note on Friday, May 29th. Finally, Stifel Nicolaus set a $106.00 target price on Ambarella in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $101.12.

Ambarella Trading Down 3.1%

The company's 50-day simple moving average is $72.56 and its 200-day simple moving average is $66.45. The stock has a market capitalization of $3.66 billion, a price-to-earnings ratio of -51.71 and a beta of 2.12.

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

Insider Transactions at Ambarella

In related news, VP Yun-Lung Chen sold 5,958 shares of the company's stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $78.66, for a total value of $468,656.28. Following the sale, the vice president directly owned 60,557 shares in the company, valued at $4,763,413.62. This represents a 8.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Chi-Hong Ju sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the sale, the vice president directly owned 155,924 shares of the company's stock, valued at $13,852,288.16. This represents a 6.03% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 91,419 shares of company stock worth $7,591,700. 4.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ambarella

Several large investors have recently modified their holdings of the company. Financial Management Professionals Inc. acquired a new position in Ambarella in the second quarter valued at $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Ambarella in the 2nd quarter worth about $34,000. Advisory Services Network LLC acquired a new position in shares of Ambarella in the 3rd quarter valued at about $33,000. EverSource Wealth Advisors LLC lifted its stake in shares of 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 during the period. Finally, Essential Partners LLC boosted its position in shares of Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 228 shares in the last quarter. 82.09% of the stock is currently owned by institutional investors and hedge funds.

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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