Ambarella, Inc. (NASDAQ:AMBA) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analyst sentiment is mixed: Ambarella has a consensus “Hold” rating from 12 analysts—five Buys, six Holds and one Sell—with an average 1-year price target of $89.56.
• Several analysts recently cut their price targets, including Roth Capital to $65 and Bank of America and Craig Hallum to $70. Shares recently traded at $60.12, down 1.5% for the day.
• Ambarella slightly beat quarterly earnings and revenue estimates, reporting EPS of $0.18 and revenue of $108.12 million; revenue rose 13.2% year over year.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) has earned a consensus rating of "Hold" from the twelve ratings firms that are presently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $89.56.

A number of equities analysts recently issued reports on AMBA shares. Stifel Nicolaus dropped their price objective on shares of Ambarella from $106.00 to $90.00 and set a "buy" rating on the stock in a report on Friday, September 4th. Roth Capital cut their target price on shares of Ambarella from $90.00 to $65.00 and set a "neutral" rating for the company in a research report on Friday, September 4th. Bank of America reduced their target price on shares of Ambarella from $96.00 to $70.00 and set a "neutral" rating for the company in a report on Friday, September 4th. Craig Hallum downgraded shares of Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price target on the stock. in a research report on Friday, September 4th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Ambarella in a research note on Tuesday, October 6th.

Ambarella Trading Down 1.5%

AMBA stock traded down $0.94 during trading on Friday, reaching $60.12. The stock had a trading volume of 639,677 shares, compared to its average volume of 1,489,134. Ambarella has a 52 week low of $48.30 and a 52 week high of $96.36. The stock's 50 day moving average is $64.96 and its two-hundred day moving average is $67.09. The firm has a market cap of $2.65 billion, a PE ratio of -46.60 and a beta of 2.36.

Ambarella (NASDAQ:AMBA - Get Free Report) last announced its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.01. The business had revenue of $108.12 million for the quarter, compared to analysts' expectations of $107.76 million. Ambarella had a negative return on equity of 10.03% and a negative net margin of 13.48%. The business's revenue for the quarter was up 13.2% on a year-over-year basis. During the same period last year, the firm posted $0.15 earnings per share. On average, research analysts anticipate that Ambarella will post -1.12 EPS for the current year.

Insider Buying and Selling at Ambarella

In other news, CFO John Young sold 1,896 shares of the company's stock in a transaction on Friday, September 18th. The stock was sold at an average price of $67.28, for a total value of $127,562.88. Following the completion of the sale, the chief financial officer directly owned 107,806 shares in the company, valued at $7,253,187.68. This represents a 1.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 2,009 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $64.83, for a total value of $130,243.47. Following the completion of the transaction, the vice president directly owned 154,153 shares in the company, valued at approximately $9,993,738.99. This represents a 1.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 16,260 shares of company stock worth $1,060,264. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company boosted its stake in Ambarella by 49.5% during the first quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company's stock valued at $81,644,000 after buying an additional 524,937 shares during the last quarter. WINTON GROUP Ltd increased its stake in Ambarella by 517.3% in the 2nd quarter. WINTON GROUP Ltd now owns 32,100 shares of the semiconductor company's stock worth $2,754,000 after acquiring an additional 26,900 shares during the last quarter. Pinnacle Associates Ltd. raised its holdings in shares of Ambarella by 4.9% during the 3rd quarter. Pinnacle Associates Ltd. now owns 428,683 shares of the semiconductor company's stock worth $29,798,000 after acquiring an additional 19,837 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Ambarella by 7.8% during the 1st quarter. Bank of America Corp DE now owns 481,758 shares of the semiconductor company's stock worth $24,798,000 after acquiring an additional 34,843 shares in the last quarter. Finally, Renaissance Technologies LLC purchased a new stake in shares of Ambarella during the 1st quarter worth approximately $10,264,000. Institutional investors own 82.09% of the company's stock.

About Ambarella

Ambarella, Inc. is a fabless semiconductor company that develops system-on-a-chip (SoC) products for video processing and computer vision. Its chips combine image processing, video encoding and artificial intelligence capabilities for devices that capture and analyze visual information. The company's products are used in applications including automotive systems such as advanced driver-assistance and driver-monitoring systems, security cameras, robotics and other Internet of Things devices. Ambarella also supplies technology for consumer video products, including cameras and drones.

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