Ambarella's (AMBA) Sell (D-) Rating Reaffirmed at Weiss Ratings

Key Points

• Ambarella's stock has been reaffirmed with a "sell (D-)" rating by Weiss Ratings, despite recent upgrades from other research firms.
• The company's quarterly earnings report showed a profit of $0.15 earnings per share, significantly exceeding estimates, with revenue up 49.9% year-over-year.
• Ambarella's average analyst rating is a "Moderate Buy" with a consensus price target of $93.88.

Ambarella (NASDAQ:AMBA - Get Free Report)'s stock had its "sell (d-)" rating reaffirmed by stock analysts at Weiss Ratings in a research note issued to investors on Wednesday,Weiss Ratings reports.

Several other research firms have also recently issued reports on AMBA. Summit Insights upgraded shares of Ambarella from a "hold" rating to a "buy" rating in a report on Friday, August 29th. Northland Securities increased their price objective on shares of Ambarella from $75.00 to $95.00 and gave the company an "outperform" rating in a report on Friday, August 29th. Susquehanna increased their price objective on shares of Ambarella from $80.00 to $90.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Oppenheimer restated a "market perform" rating on shares of Ambarella in a report on Friday, August 29th. Finally, Morgan Stanley raised their target price on shares of Ambarella from $80.00 to $96.00 and gave the stock an "overweight" rating in a report on Friday, August 29th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $93.88.

Ambarella Trading Up 4.2%

AMBA traded up $3.45 on Wednesday, hitting $85.03. 397,950 shares of the company's stock were exchanged, compared to its average volume of 857,081. The firm has a market cap of $3.63 billion, a PE ratio of -40.30 and a beta of 2.10. Ambarella has a twelve month low of $38.86 and a twelve month high of $93.44. The stock has a fifty day moving average of $75.99 and a two-hundred day moving average of $63.00.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.10. The firm had revenue of $95.51 million for the quarter, compared to analyst estimates of $90.01 million. Ambarella had a negative net margin of 25.46% and a negative return on equity of 14.73%. Ambarella's quarterly revenue was up 49.9% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.13) earnings per share. Ambarella has set its Q3 2026 guidance at EPS. On average, analysts predict that Ambarella will post -2.81 EPS for the current year.

Insiders Place Their Bets

In other Ambarella news, COO Chan W. Lee sold 1,947 shares of the stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $79.43, for a total value of $154,650.21. Following the completion of the sale, the chief operating officer owned 126,972 shares in the company, valued at $10,085,385.96. This represents a 1.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Chi-Hong Ju sold 1,168 shares of the stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total transaction of $92,774.24. Following the completion of the sale, the vice president owned 170,087 shares of the company's stock, valued at approximately $13,510,010.41. The trade was a 0.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 21,350 shares of company stock worth $1,738,206 in the last quarter. Corporate insiders own 5.70% of the company's stock.

Institutional Investors Weigh In On Ambarella

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Ambarella by 3.2% in the 1st quarter. Vanguard Group Inc. now owns 4,848,305 shares of the semiconductor company's stock worth $244,015,000 after buying an additional 152,181 shares in the last quarter. State Street Corp raised its holdings in shares of Ambarella by 8.9% during the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock valued at $122,562,000 after purchasing an additional 151,694 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of Ambarella by 4.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company's stock valued at $90,609,000 after purchasing an additional 52,954 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Ambarella by 88.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,232,272 shares of the semiconductor company's stock valued at $62,020,000 after purchasing an additional 579,917 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Ambarella by 3.0% during the 2nd quarter. Geode Capital Management LLC now owns 976,281 shares of the semiconductor company's stock valued at $64,505,000 after purchasing an additional 28,371 shares in the last quarter. Hedge funds and other institutional investors own 82.09% of the company's stock.

Ambarella Company Profile

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

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