Jericho Capital Asset Management L.P. Increases Stake in Ambarella, Inc. $AMBA

Key Points

• Jericho Capital increased its stake in Ambarella by 10.5% in Q3 to 1,213,347 shares (2.84% of the company) valued at about $100.13 million, making AMBA its 26th largest holding and ~1.0% of Jericho’s portfolio.
• Insiders have been selling: CEO Feng‑Ming Wang sold 50,000 shares at $60.80 on March 2 (a 6.11% reduction), and insiders disposed of 77,685 shares worth ~$5.06 million in the past three months, leaving insiders with 5.70% ownership.
• Ambarella beat Q4 estimates with EPS of $0.13 vs. $0.10 and revenue of $100.87M vs. $100.17M (revenue up 20.1% YoY), though it still posts a negative net margin (-19.42%); analyst consensus per MarketBeat is a Moderate Buy with a $96 price target.

Jericho Capital Asset Management L.P. raised its stake in Ambarella, Inc. (NASDAQ:AMBA - Free Report) by 10.5% in the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 1,213,347 shares of the semiconductor company's stock after purchasing an additional 114,865 shares during the quarter. Ambarella accounts for 1.0% of Jericho Capital Asset Management L.P.'s portfolio, making the stock its 26th biggest position. Jericho Capital Asset Management L.P. owned 2.84% of Ambarella worth $100,125,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently made changes to their positions in AMBA. Stephens Inc. AR raised its holdings in Ambarella by 3.7% during the 3rd quarter. Stephens Inc. AR now owns 3,804 shares of the semiconductor company's stock valued at $314,000 after buying an additional 137 shares during the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in Ambarella by 3.2% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 4,537 shares of the semiconductor company's stock worth $374,000 after acquiring an additional 142 shares during the last quarter. Arizona State Retirement System increased its position in shares of Ambarella by 1.3% in the third quarter. Arizona State Retirement System now owns 11,899 shares of the semiconductor company's stock valued at $982,000 after acquiring an additional 157 shares during the period. Ameritas Investment Partners Inc. raised its stake in shares of Ambarella by 4.9% during the second quarter. Ameritas Investment Partners Inc. now owns 4,160 shares of the semiconductor company's stock valued at $275,000 after acquiring an additional 196 shares during the last quarter. Finally, Advisors Asset Management Inc. raised its stake in shares of Ambarella by 21.3% during the second quarter. Advisors Asset Management Inc. now owns 1,134 shares of the semiconductor company's stock valued at $75,000 after acquiring an additional 199 shares during the last quarter. Hedge funds and other institutional investors own 82.09% of the company's stock.

Insider Transactions at Ambarella

In other Ambarella news, CEO Feng-Ming Wang sold 50,000 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $60.80, for a total value of $3,040,000.00. Following the completion of the transaction, the chief executive officer owned 768,979 shares in the company, valued at approximately $46,753,923.20. This represents a 6.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Chan W. Lee sold 2,406 shares of the firm's stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $71.82, for a total value of $172,798.92. Following the transaction, the insider directly owned 124,566 shares of the company's stock, valued at $8,946,330.12. This represents a 1.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 77,685 shares of company stock worth $5,056,598. 5.70% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts recently issued reports on AMBA shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Ambarella in a research note on Wednesday, January 21st. Summit Insights raised Ambarella from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, November 25th. Stifel Nicolaus reiterated a "buy" rating and issued a $100.00 price objective (up from $90.00) on shares of Ambarella in a report on Wednesday, November 26th. Consumer Edge reiterated a "buy" rating on shares of Ambarella in a research report on Tuesday, February 24th. Finally, Needham & Company LLC reissued a "buy" rating and set a $100.00 target price on shares of Ambarella in a research note on Wednesday, November 26th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $96.00.

Ambarella Trading Down 0.2%

Shares of AMBA opened at $52.29 on Monday. Ambarella, Inc. has a 1-year low of $38.86 and a 1-year high of $96.69. The firm's 50-day moving average price is $64.56 and its 200-day moving average price is $75.10. The firm has a market capitalization of $2.25 billion, a price-to-earnings ratio of -29.38 and a beta of 1.95.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.10 by $0.03. The company had revenue of $100.87 million during the quarter, compared to the consensus estimate of $100.17 million. Ambarella had a negative net margin of 19.42% and a negative return on equity of 12.24%. Ambarella's revenue was up 20.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.11 earnings per share. On average, research analysts forecast that Ambarella, Inc. will post -2.81 EPS for the current fiscal year.

Ambarella 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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