Ambarella, Inc. $AMBA Stock: Pinnacle Associates Ltd. Grows Position

Key Points

• Pinnacle Associates increased its Ambarella position by 4.9% in the third quarter to 428,683 shares, worth approximately $29.8 million. Institutional investors and hedge funds collectively own 82.09% of the company.
• Ambarella reported quarterly EPS of $0.18, exceeding estimates by $0.01, while revenue rose 13.2% year over year to $108.12 million. However, the company posted a negative net margin and analysts expect a full-year loss.
• Analyst sentiment is mixed, with five Buy, six Hold and one Sell rating; the average rating is Hold with an $89.56 price target. Meanwhile, insiders sold 16,260 shares worth about $1.06 million over the past 90 days.

Pinnacle Associates Ltd. raised its stake in shares of Ambarella, Inc. (NASDAQ:AMBA - Free Report) by 4.9% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 428,683 shares of the semiconductor company's stock after buying an additional 19,837 shares during the period. Pinnacle Associates Ltd. owned about 0.97% of Ambarella worth $29,798,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the stock. SteelPeak Wealth LLC acquired a new position in shares of Ambarella in the third quarter worth $547,000. State of Alaska Department of Revenue raised its holdings in shares of Ambarella by 41.0% during the third quarter. State of Alaska Department of Revenue now owns 2,775 shares of the semiconductor company's stock worth $192,000 after acquiring an additional 807 shares in the last quarter. Krilogy Financial LLC raised its holdings in shares of Ambarella by 8.1% during the third quarter. Krilogy Financial LLC now owns 4,917 shares of the semiconductor company's stock worth $319,000 after acquiring an additional 369 shares in the last quarter. Farther Finance Advisors LLC boosted its position in Ambarella by 42.9% during the third quarter. Farther Finance Advisors LLC now owns 2,861 shares of the semiconductor company's stock valued at $199,000 after purchasing an additional 859 shares during the last quarter. Finally, Cim Investment Management Inc. boosted its position in Ambarella by 7.4% during the second quarter. Cim Investment Management Inc. now owns 6,443 shares of the semiconductor company's stock valued at $553,000 after purchasing an additional 445 shares during the last quarter. Institutional investors and hedge funds own 82.09% of the company's stock.

Ambarella Stock Up 0.7%

Shares of AMBA opened at $63.22 on Wednesday. The company's fifty day moving average is $68.50 and its 200-day moving average is $70.18. Ambarella, Inc. has a 12 month low of $48.30 and a 12 month high of $96.69. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of -49.01 and a beta of 2.38.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings data on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.01. The business had revenue of $108.12 million during the quarter, compared to analyst estimates of $107.76 million. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.03%. Ambarella's quarterly revenue was up 13.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.15 EPS. As a group, research analysts predict that Ambarella, Inc. will post -1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Ambarella

In other Ambarella news, CFO John Young sold 3,126 shares of the business's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $64.83, for a total value of $202,658.58. Following the completion of the sale, the chief financial officer owned 109,702 shares of the company's stock, valued at $7,111,980.66. The trade was a 2.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Chi-Hong Ju sold 2,009 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $64.83, for a total value of $130,243.47. Following the sale, the vice president owned 154,153 shares of the company's stock, valued at approximately $9,993,738.99. This trade represents a 1.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 16,260 shares of company stock valued at $1,060,264. Corporate insiders own 4.50% of the company's stock.

Analyst Ratings Changes

A number of research analysts have commented on AMBA shares. Needham & Company LLC restated a "buy" rating on shares of Ambarella in a research note on Friday, September 4th. Roth Capital cut their price target on Ambarella from $90.00 to $65.00 and set a "neutral" rating for the company in a research note on Friday, September 4th. Rosenblatt Securities reaffirmed a "buy" rating and set a $120.00 price target on shares of Ambarella in a research note on Wednesday, September 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ambarella in a report on Tuesday, October 6th. Finally, Stifel Nicolaus lowered their price target on Ambarella from $106.00 to $90.00 and set a "buy" rating for the company in a research note on Friday, September 4th. 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. Based on data from MarketBeat, Ambarella has an average rating of "Hold" and an average target price of $89.56.

Ambarella Profile

Ambarella, Inc NASDAQ: AMBA is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing, computer vision and artificial intelligence at the edge. Its technologies are designed to process and analyze visual data locally in devices, reducing the need to transmit data to centralized cloud systems.

The company's product portfolio includes video-processing SoCs and its CVflow family of artificial intelligence processors. These products support applications such as security cameras, automotive cameras and advanced driver-assistance systems, robotics, industrial automation, consumer devices and other intelligent imaging systems.

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