Ambarella (NASDAQ:AMBA) Stock Price Down 8.9% - Here's What Happened

Key Points

• Ambarella shares fell 8.9% on Wednesday, trading as low as $67.25 after closing at $72.90 the previous session. Trading volume was also well below average, signaling a sharp pullback in the stock.
• Despite the selloff, analyst sentiment remains fairly constructive: the stock carries a Moderate Buy consensus rating with an average price target of $101.12. Recent firms, including Rosenblatt and Susquehanna, raised their targets further.
• Ambarella’s latest quarter showed earnings of $0.11 per share in line with estimates and revenue of $100.36 million, up 16.9% year over year. However, the company still posted negative margins and analysts expect a loss for the full year.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) shares were down 8.9% on Wednesday . The stock traded as low as $67.25 and last traded at $66.40. 398,920 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 1,173,745 shares. The stock had previously closed at $72.90.

Analyst Upgrades and Downgrades

AMBA has been the topic of a number of recent analyst reports. Rosenblatt Securities raised their price target on shares of Ambarella from $115.00 to $120.00 in a research report on Tuesday, June 30th. Consumer Edge reissued a "buy" rating on shares of Ambarella in a report on Friday, May 22nd. Susquehanna raised their price target on shares of Ambarella from $80.00 to $110.00 and gave the company a "positive" 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. Finally, Stifel Nicolaus set a $106.00 price target on Ambarella in a research note on Friday, May 29th. One research 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 company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $101.12.

Ambarella Trading Down 6.2%

The business has a fifty day simple moving average of $75.22 and a two-hundred day simple moving average of $66.67. The stock has a market cap of $3.00 billion, a PE ratio of -42.46 and a beta of 2.11.

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

Insider Activity at Ambarella

In other news, CFO John Alexander Young sold 5,033 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total transaction of $339,928.82. Following the transaction, the chief financial officer owned 112,590 shares of the company's stock, valued at approximately $7,604,328.60. The trade was a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 10,000 shares of Ambarella stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total value of $888,400.00. Following the sale, the vice president owned 155,924 shares of the company's stock, valued at approximately $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 93,390 shares of company stock worth $7,709,960 in the last three months. Corporate insiders own 4.50% of the company's stock.

Institutional Trading of Ambarella

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD lifted its stake in shares of Ambarella by 2,312.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company's stock worth $61,250,000 after buying an additional 828,773 shares during the period. UBS Group AG grew its stake in Ambarella by 379.3% in the 3rd quarter. UBS Group AG now owns 821,747 shares of the semiconductor company's stock valued at $67,811,000 after acquiring an additional 650,306 shares during the period. Squarepoint Ops LLC acquired a new stake in Ambarella in the 2nd quarter worth about $36,810,000. The Manufacturers Life Insurance Company raised its stake in Ambarella by 49.5% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company's stock valued at $81,644,000 after purchasing an additional 524,937 shares during the last quarter. Finally, Balyasny Asset Management L.P. grew its position in shares of Ambarella by 894.7% in the second quarter. Balyasny Asset Management L.P. now owns 459,562 shares of the semiconductor company's stock valued at $30,361,000 after purchasing an additional 413,362 shares in the last quarter. 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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