Ambarella (NASDAQ:AMBA) Shares Up 7.2% - Time to Buy?

Key Points

• Ambarella shares rose 7.2% to about $68.08, though trading volume was 81% below the average daily level.
• Analyst sentiment remains mixed: five analysts rate the stock Buy, six Hold and one Sell, producing an overall Hold rating with a consensus price target of $89.56.
• Recent quarterly results modestly exceeded expectations, with EPS of $0.18 versus $0.17 expected and revenue of $108.12 million, up 13.2% year over year; however, the company reported negative margins and return on equity.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) shares shot up 7.2% during mid-day trading on Wednesday . The company traded as high as $67.48 and last traded at $68.0790. 250,645 shares changed hands during trading, a decline of 81% from the average daily volume of 1,299,333 shares. The stock had previously closed at $63.48.

Analyst Upgrades and Downgrades

AMBA has been the topic of a number of recent analyst reports. Bank of America dropped their price objective on Ambarella from $96.00 to $70.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. Susquehanna increased their target price on Ambarella from $80.00 to $110.00 and gave the stock a "positive" rating in a report on Friday, May 29th. Roth Capital lowered their target price on shares of Ambarella from $90.00 to $65.00 and set a "neutral" rating on the stock in a report on Friday, September 4th. Craig Hallum lowered Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price target for the company. in a research report on Friday, September 4th. Finally, Consumer Edge reissued a "buy" rating on shares of Ambarella in a research report on Friday, May 22nd. Five research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Ambarella has an average rating of "Hold" and a consensus target price of $89.56.

Ambarella Trading Up 7.3%

The company has a market capitalization of $2.99 billion, a P/E ratio of -53.14 and a beta of 2.09. The company's fifty day moving average is $73.81 and its 200 day moving average is $68.17.

Ambarella (NASDAQ:AMBA - Get Free Report) last announced its quarterly earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.01. Ambarella had a negative return on equity of 10.12% and a negative net margin of 13.48%.The company had revenue of $108.12 million during the quarter, compared to analysts' expectations of $107.76 million. During the same period in the previous year, the business earned $0.15 earnings per share. The firm's quarterly revenue was up 13.2% compared to the same quarter last year. Equities research analysts predict that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Buying and Selling

In other Ambarella news, CEO Feng-Ming Wang sold 16,250 shares of Ambarella stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 773,607 shares in the company, valued at $69,686,518.56. The trade was a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total transaction of $200,284.37. Following the sale, the insider directly owned 157,098 shares of the company's stock, valued at $10,662,241.26. This represents a 1.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 58,519 shares of company stock valued at $4,595,475 in the last ninety days. 4.50% of the stock is owned by insiders.

Institutional Trading of Ambarella

A number of hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System lifted its holdings in shares of Ambarella by 8,490.9% in the 2nd quarter. California State Teachers Retirement System now owns 4,116,598 shares of the semiconductor company's stock worth $353,204,000 after acquiring an additional 4,068,680 shares during the last quarter. State Street Corp lifted its holdings in Ambarella by 8.9% in the second quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock worth $122,562,000 after buying an additional 151,694 shares during the period. Jericho Capital Asset Management L.P. lifted its stake in shares of Ambarella by 30.8% in 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 purchasing an additional 373,734 shares during the period. The Manufacturers Life Insurance Company lifted its position 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 period. Finally, The Manufacturers Life Insurance Company lifted its position in Ambarella by 4.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company's stock valued at $90,609,000 after acquiring an additional 52,954 shares during the period. Institutional investors own 82.09% of the company's stock.

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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