Ambarella (NASDAQ:AMBA) Issues Quarterly Earnings Results, Misses Estimates By $0.51 EPS

Key Points

• Ambarella reported a quarterly loss of $0.34 per share, missing the consensus estimate of $0.17 earnings per share by $0.51. The company also posted a negative net margin of 17.18%.
• Shares fell $3.76 to $63.38 in Thursday trading, with the stock’s market capitalization at approximately $2.78 billion and its price below both its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $101.86, while insiders sold 58,519 shares worth roughly $4.6 million over the past three months.

Ambarella (NASDAQ:AMBA - Get Free Report) issued its quarterly earnings results on Thursday. The semiconductor company reported ($0.34) earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.51), Zacks reports. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.

Ambarella Stock Performance

Ambarella stock traded down $3.76 during trading on Thursday, reaching $63.38. The company had a trading volume of 2,556,073 shares, compared to its average volume of 1,269,315. The firm has a market capitalization of $2.78 billion, a PE ratio of -39.37 and a beta of 2.09. The firm's 50-day simple moving average is $74.33 and its 200 day simple moving average is $68.25. Ambarella has a 1-year low of $48.30 and a 1-year high of $96.69.

Insider Transactions at Ambarella

In related news, CEO Feng-Ming Wang sold 16,250 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $90.08, for a total transaction of $1,463,800.00. Following the transaction, the chief executive officer directly owned 773,607 shares in the company, valued at approximately $69,686,518.56. The trade was a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Chan W. Lee sold 2,951 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the sale, the insider owned 157,098 shares of the company's stock, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 58,519 shares of company stock worth $4,595,475 in the last three months. 4.50% of the stock is owned by corporate insiders.

Institutional Trading of Ambarella

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kemnay Advisory Services Inc. acquired a new stake in Ambarella during the fourth quarter worth $71,000. Kestra Advisory Services LLC acquired a new stake in shares of Ambarella during the 4th quarter worth about $88,000. Advisors Asset Management Inc. raised its holdings in Ambarella by 32.3% in the 4th quarter. Advisors Asset Management Inc. now owns 1,987 shares of the semiconductor company's stock valued at $141,000 after buying an additional 485 shares during the period. Empowered Funds LLC purchased a new position in Ambarella during the fourth quarter worth about $92,000. Finally, State of Wyoming increased its position in shares of Ambarella by 28.8% during the fourth quarter. State of Wyoming now owns 1,176 shares of the semiconductor company's stock valued at $83,000 after acquiring an additional 263 shares during the last quarter. 82.09% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

AMBA has been the topic of several research analyst reports. Weiss Ratings raised shares of Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, July 10th. Summit Insights cut shares of Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th. Northland Securities set a $101.00 price objective on shares of Ambarella in a report on Wednesday, June 17th. Consumer Edge reissued a "buy" rating on shares of Ambarella in a research report on Friday, May 22nd. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $120.00 target price on shares of Ambarella in a research report on Monday. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Ambarella currently has a consensus rating of "Hold" and an average price target of $101.86.

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.

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