Ambarella (NASDAQ:AMBA) Price Target Cut to $90.00 by Analysts at Stifel Nicolaus

Key Points

• Stifel Nicolaus cut Ambarella’s price target to $90 from $106 but maintained a Buy rating, implying nearly 39% upside from the prior close.
• Analyst sentiment is mixed: Craig Hallum downgraded the stock to Hold with a $70 target, while the broader consensus is Hold with an average target of $89.56.
• Ambarella’s latest results modestly exceeded expectations, with revenue rising 13.2% year over year to $108.1 million and EPS of $0.18, though the company remained unprofitable on a GAAP basis and margins declined.

Ambarella (NASDAQ:AMBA - Get Free Report) had its target price dropped by Stifel Nicolaus from $106.00 to $90.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. Stifel Nicolaus' price objective points to a potential upside of 38.96% from the company's previous close.

Several other research firms also recently commented on AMBA. Oppenheimer reiterated a "market perform" rating on shares of Ambarella in a research report on Friday. Craig Hallum lowered shares of Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price objective on the stock. in a research note on Friday. Roth Capital set a $65.00 target price on shares of Ambarella in a report on Friday. Weiss Ratings upgraded shares of Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, July 10th. Finally, Summit Insights lowered Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $89.56.

Ambarella Trading Up 2.2%

Shares of NASDAQ AMBA traded up $1.39 during trading hours on Friday, reaching $64.77. The stock had a trading volume of 2,835,728 shares, compared to its average volume of 1,278,222. The firm has a market cap of $2.84 billion, a price-to-earnings ratio of -39.94 and a beta of 2.09. Ambarella has a fifty-two week low of $48.30 and a fifty-two week high of $96.69. The firm has a 50-day moving average of $74.31 and a 200-day moving average of $68.23.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.17 by $0.01. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The company had revenue of $108.12 million for the quarter, compared to analyst estimates of $107.76 million. During the same quarter in the previous year, the company posted $0.15 earnings per share. The firm's revenue was up 13.2% compared to the same quarter last year. On average, equities analysts predict that Ambarella will post -1.13 EPS for the current year.

Insider Buying and Selling

In other news, insider Chan Lee sold 2,951 shares of Ambarella stock in a transaction dated 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 owned 157,098 shares of the company's stock, valued at $10,662,241.26. The trade was a 1.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO John Young sold 5,033 shares of the business's stock in a transaction dated 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 in the company, valued at approximately $7,604,328.60. This trade represents a 4.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, 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 hedge funds have recently modified their holdings of the business. Essential Partners LLC grew its holdings in Ambarella by 90.1% during the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 228 shares during the period. EverSource Wealth Advisors LLC grew its stake in shares of Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 326 shares during the period. Cassaday & Co Wealth Management LLC purchased a new position in shares of Ambarella in the 1st quarter valued at about $30,000. Financial Management Professionals Inc. acquired a new stake in shares of Ambarella in the second quarter valued at about $32,000. Finally, Advisory Services Network LLC acquired a new stake in shares of Ambarella in the third quarter valued at about $33,000. 82.09% of the stock is owned by institutional investors and hedge funds.

Ambarella News Summary

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year, narrowly exceeding the $107.8 million consensus estimate. Non-GAAP EPS of $0.18 also topped expectations and increased from $0.15 a year earlier. Ambarella fiscal Q2 financial results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with the approximately $119.3 million analyst estimate, supporting expectations for continued edge-AI growth. Ambarella Q3 revenue guidance
• Positive Sentiment: Long-term agreements with Macnica and Capgemini could expand Ambarella’s distribution, engineering and systems-integration reach for edge and physical AI applications, although the revenue impact is not yet quantified. Ambarella and Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya maintained a Hold rating, citing elevated valuation and near-term margin uncertainty, while retaining a $96 price objective. Ambarella valuation and margin analysis
• Negative Sentiment: Craig Hallum downgraded Ambarella from Buy to Hold and set a $70 price target. The downgrade signals reduced conviction in the near-term upside following the earnings release. Craig Hallum downgrade
• Negative Sentiment: GAAP results remained unprofitable, with a $6.7 million net loss, while GAAP gross margin declined to 57.7% from 58.9% a year earlier. Management also expects fiscal Q3 non-GAAP gross margin of 59% to 60%, indicating continued margin pressure.
• Negative Sentiment: Reported insider activity remains a cautionary signal: company insiders recorded 23 open-market sales and no purchases over the past six months.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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