Ambarella (NASDAQ:AMBA) Trading 5.4% Higher - Here's Why

Key Points

• Ambarella shares rose 5.4% on Monday, trading as high as $65.46 before closing near $65.15, though volume was well below average.
• Wall Street remains bullish overall, with a consensus rating of “Moderate Buy” and an average price target of $101.12, despite mixed individual analyst moves and upgraded targets from firms like Rosenblatt and Susquehanna.
• The company recently reported Q1 revenue growth of 16.9% year over year and EPS of $0.11, matching estimates, while insiders have continued selling shares in recent months.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) traded up 5.4% during trading on Monday . The stock traded as high as $65.46 and last traded at $65.1540. Approximately 399,911 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 1,184,785 shares. The stock had previously closed at $61.84.

Wall Street Analysts Forecast Growth

AMBA has been the topic of a number of research reports. Rosenblatt Securities boosted their price objective on shares of Ambarella from $115.00 to $120.00 in a research report on Tuesday, June 30th. Weiss Ratings upgraded Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, July 10th. Stifel Nicolaus set a $106.00 target price on Ambarella in a research report on Friday, May 29th. Northland Securities set a $101.00 price target on Ambarella in a research report on Wednesday, June 17th. Finally, Susquehanna raised their price target on Ambarella from $80.00 to $110.00 and gave the company a "positive" rating in a research note on Friday, May 29th. One equities research 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. According to data from MarketBeat.com, Ambarella presently has a consensus rating of "Moderate Buy" and a consensus price target of $101.12.

Ambarella Stock Performance

The company has a market cap of $2.83 billion, a P/E ratio of -40.03 and a beta of 2.11. The business's 50-day moving average price is $74.58 and its 200 day moving average price is $66.54.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $100.12 million. During the same period in the prior year, the firm earned $0.07 EPS. Ambarella's quarterly revenue was up 16.9% compared to the same quarter last year. Equities research analysts forecast that Ambarella, Inc. will post -1.13 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the transaction, the insider directly owned 157,098 shares in the company, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Yun-Lung Chen sold 5,958 shares of the stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $78.66, for a total value of $468,656.28. Following the completion of the sale, the vice president owned 60,557 shares in the company, valued at approximately $4,763,413.62. This trade represents a 8.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 93,390 shares of company stock valued at $7,709,960. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Ambarella

A number of institutional investors have recently made changes to their positions in the company. Essential Partners LLC lifted its holdings in Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 228 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Ambarella by 362.2% during the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 326 shares during the period. Cassaday & Co Wealth Management LLC bought a new position in shares of Ambarella in the first quarter worth $30,000. Financial Management Professionals Inc. bought a new position in Ambarella in the 2nd quarter worth about $32,000. Finally, Advisory Services Network LLC bought a new stake in shares of Ambarella during the third quarter valued at about $33,000. 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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