Ambarella (NASDAQ:AMBA) Share Price Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Ambarella shares fell below their 200-day moving average, trading as low as $67.05 versus the $69.31 average, and last changing hands at $68.26.
• Analysts have a consensus rating of “Hold” with an average price target of $89.56; ratings include five Buys, six Holds and one Sell.
• The company slightly beat quarterly earnings and revenue expectations, with EPS of $0.18 and revenue of $108.12 million, while revenue grew 13.2% year over year; insiders sold 22,218 shares worth about $1.53 million over the past 90 days.

Shares of Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $69.31 and traded as low as $67.05. Ambarella shares last traded at $68.26, with a volume of 1,095,901 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on AMBA shares. Northland Securities set a $101.00 price target on shares of Ambarella in a report on Wednesday, June 17th. Craig Hallum downgraded Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price objective for the company. in a report on Friday, September 4th. Needham & Company LLC reaffirmed a "buy" rating on shares of Ambarella in a research report on Friday, September 4th. Oppenheimer reiterated a "market perform" rating on shares of Ambarella in a report on Friday, September 4th. Finally, Weiss Ratings raised Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Ambarella currently has an average rating of "Hold" and a consensus price target of $89.56.

Ambarella Trading Down 0.6%

The stock has a market capitalization of $3.01 billion, a price-to-earnings ratio of -52.91 and a beta of 2.38. The firm has a 50-day moving average of $72.01 and a 200 day moving average of $69.31.

Ambarella (NASDAQ:AMBA - Get Free Report) last issued 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 company had revenue of $108.12 million during 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%. Ambarella's revenue for the quarter was up 13.2% on a year-over-year basis. During the same quarter last year, the company earned $0.15 earnings per share. As a group, research analysts forecast that Ambarella, Inc. will post -1.12 EPS for the current year.

Insider Transactions at Ambarella

In other Ambarella news, VP Chi-Hong Ju sold 2,009 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $64.83, for a total transaction of $130,243.47. Following the transaction, the vice president directly owned 154,153 shares in the company, valued at $9,993,738.99. This represents a 1.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Yun-Lung Chen sold 5,958 shares of the firm's stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $78.66, for a total transaction of $468,656.28. Following the transaction, the vice president directly owned 60,557 shares of the company's stock, valued at approximately $4,763,413.62. This represents a 8.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 22,218 shares of company stock valued at $1,528,920 over the last ninety days. 4.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Ambarella

Hedge funds and other institutional investors have recently bought and sold shares of the company. The Manufacturers Life Insurance Company increased its stake in Ambarella by 49.5% in the 1st 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 period. Jericho Capital Asset Management L.P. grew its holdings in shares of Ambarella by 30.8% during the 4th quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company's stock valued at $112,429,000 after acquiring an additional 373,734 shares in the last quarter. Hawk Ridge Capital Management LP purchased a new position in shares of Ambarella during the 1st quarter valued at $14,212,000. Renaissance Technologies LLC acquired a new position in shares of Ambarella in the first quarter worth $10,264,000. Finally, Dimensional Fund Advisors LP increased its stake in shares of Ambarella by 28.1% in the first quarter. Dimensional Fund Advisors LP now owns 638,587 shares of the semiconductor company's stock worth $32,866,000 after acquiring an additional 139,928 shares during the last quarter. 82.09% of the stock is owned by institutional investors.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops system-on-chip (SoC) products for edge artificial intelligence, computer vision and video processing applications. Its technologies are designed to help devices capture, analyze and process visual data locally, reducing the need to send all information to cloud-based systems.

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

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets internationally.

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