Ambarella (NASDAQ:AMBA) Given Buy Rating at Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed its “buy” rating on Ambarella and set a $120 price target, implying approximately 69.9% upside from the stock’s previous close.
• Analyst sentiment remains mixed overall: five analysts rate Ambarella a Buy, four rate it Hold, and one rates it Sell, producing an average rating of Hold and an average price target of $101.86.
• 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 reported negative net margin and return on equity.

Ambarella (NASDAQ:AMBA - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at Rosenblatt Securities in a research report issued to clients and investors on Monday,Benzinga reports. They currently have a $120.00 price target on the semiconductor company's stock. Rosenblatt Securities' target price points to a potential upside of 69.90% from the stock's previous close.

Several other equities research analysts have also recently commented on AMBA. Northland Securities set a $101.00 price target on shares of Ambarella in a research report on Wednesday, June 17th. Consumer Edge restated a "buy" rating on shares of Ambarella in a report on Friday, May 22nd. Susquehanna increased their price target on shares of Ambarella from $80.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, May 29th. Weiss Ratings raised shares of Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, July 10th. Finally, Stifel Nicolaus set a $106.00 target price on Ambarella in a report on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $101.86.

Ambarella Stock Performance

Ambarella stock opened at $70.63 on Monday. The firm has a market cap of $3.10 billion, a P/E ratio of -43.87 and a beta of 2.12. The business's fifty day moving average is $74.23 and its two-hundred day moving average is $68.22. Ambarella has a 52 week low of $48.30 and a 52 week high of $96.69.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, hitting analysts' consensus estimates of $0.11. The firm 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%. The company's revenue was up 16.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.07 EPS. On average, equities research analysts predict that Ambarella will post -1.13 earnings per share for the current year.

Insider Activity

In other Ambarella news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the sale, 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 filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Feng-Ming Wang sold 16,250 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $90.08, for a total value of $1,463,800.00. Following the completion of the transaction, the chief executive officer owned 773,607 shares of the company's stock, valued at $69,686,518.56. The trade was a 2.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 58,519 shares of company stock worth $4,595,475. 4.50% of the stock is currently owned by insiders.

Institutional Trading of Ambarella

Several institutional investors and hedge funds have recently bought and sold shares of AMBA. Financial Management Professionals Inc. bought a new stake in Ambarella in the 2nd quarter valued at $32,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Ambarella during the 2nd quarter worth about $34,000. Advisory Services Network LLC acquired a new position in Ambarella in the 3rd quarter valued at about $33,000. EverSource Wealth Advisors LLC raised its holdings 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 acquiring an additional 326 shares during the period. Finally, Essential Partners LLC raised its holdings in Ambarella by 90.1% in the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock valued at $25,000 after acquiring an additional 228 shares during the period. Institutional investors 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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