Ambarella, Inc. (NASDAQ:AMBA) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Brokerages maintain a “Hold” consensus on Ambarella, with six hold, five buy and one sell rating. The average 12-month price target is $89.56, though Roth Capital cut its target to $65 and Summit Insights downgraded the stock to hold.
• Ambarella’s latest quarterly results slightly exceeded expectations, with EPS of $0.18 versus $0.17 expected and revenue of $108.12 million versus $107.76 million estimated. Revenue increased 13.2% year over year, but the company remained unprofitable.
• Insiders have sold 48,218 shares worth approximately $3.86 million over the past 90 days, while hedge funds and institutional investors own 82.09% of the stock. AMBA recently traded at $72.68, within a 52-week range of $48.30 to $96.69.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has been assigned a consensus recommendation of "Hold" from the twelve brokerages that are currently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, six have given a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $89.56.

A number of research firms have issued reports on AMBA. Northland Securities set a $101.00 price objective on shares of Ambarella in a research report on Wednesday, June 17th. Needham & Company LLC reiterated a "buy" rating on shares of Ambarella in a report on Friday, September 4th. Weiss Ratings raised Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, July 10th. Roth Capital reduced their price target on Ambarella from $90.00 to $65.00 and set a "neutral" rating on the stock in a report on Friday, September 4th. Finally, Summit Insights lowered Ambarella from a "buy" rating to a "hold" rating in a research report on Friday, May 29th.

Insider Activity

In related news, insider Chan Lee sold 2,893 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $64.83, for a total transaction of $187,553.19. Following the completion of the transaction, the insider owned 154,443 shares in the company, valued at $10,012,539.69. This represents 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 available through this hyperlink. Also, VP Chi-Hong Ju sold 10,000 shares of the firm's 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 completion of the sale, the vice president directly owned 155,924 shares of the company's stock, valued at $13,852,288.16. The trade was a 6.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 48,218 shares of company stock valued at $3,863,430. 4.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Ambarella

Hedge funds and other institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd raised its stake in Ambarella by 517.3% in the second quarter. WINTON GROUP Ltd now owns 32,100 shares of the semiconductor company's stock worth $2,754,000 after buying an additional 26,900 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Ambarella during the 2nd quarter valued at approximately $118,000. IFP Advisors Inc boosted its position in Ambarella by 70.4% during the 2nd quarter. IFP Advisors Inc now owns 731 shares of the semiconductor company's stock valued at $63,000 after acquiring an additional 302 shares in the last quarter. Arizona State Retirement System grew its holdings in shares of Ambarella by 2.2% during the 2nd quarter. Arizona State Retirement System now owns 11,479 shares of the semiconductor company's stock worth $985,000 after acquiring an additional 246 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Ambarella during the 2nd quarter worth approximately $232,000. Hedge funds and other institutional investors own 82.09% of the company's stock.

Ambarella Stock Performance

NASDAQ:AMBA opened at $72.68 on Friday. Ambarella has a fifty-two week low of $48.30 and a fifty-two week high of $96.69. The firm has a market cap of $3.21 billion, a PE ratio of -56.34 and a beta of 2.09. The business has a 50 day moving average price of $71.98 and a 200-day moving average price of $68.52.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued its 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. The company had revenue of $108.12 million for the quarter, compared to the consensus estimate of $107.76 million. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.03%. The firm's revenue for the quarter was up 13.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.15 earnings per share. Research analysts predict that Ambarella will post -1.12 EPS for the current year.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing and artificial intelligence at the edge. Its technology is designed to help devices capture, process, analyze and transmit high-quality video while reducing the need to send data to cloud-based systems.

The company's product portfolio includes its CVflow family of AI vision processors, video processors and related software. These solutions support computer vision and machine learning applications in security cameras, automotive systems, advanced driver-assistance systems, robotics, industrial equipment and consumer devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets globally through its semiconductor products and technology partnerships.

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