Ambarella (NASDAQ:AMBA) Trading 3.8% Higher - Here's What Happened

Key Points

• Ambarella shares rose 3.8% to about $70.22, although trading volume was 89% below the average session volume.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, six rate it Hold and one rates it Sell. The consensus rating is Hold, with an average price target of $89.56.
• The company slightly exceeded quarterly expectations, reporting $0.18 in adjusted EPS and $108.12 million in revenue; revenue increased 13.2% year over year, despite negative net margin and return on equity.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) shot up 3.8% on Thursday . The company traded as high as $69.26 and last traded at $70.2180. 148,777 shares were traded during trading, a decline of 89% from the average session volume of 1,340,440 shares. The stock had previously closed at $67.62.

Wall Street Analysts Forecast Growth

AMBA has been the subject of several research analyst reports. Needham & Company LLC reissued a "buy" rating on shares of Ambarella in a research report on Friday, September 4th. Rosenblatt Securities restated a "buy" rating and set a $120.00 price target on shares of Ambarella in a report on Wednesday, September 16th. Craig Hallum downgraded shares of Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price objective for the company. in a research report on Friday, September 4th. Summit Insights downgraded shares of Ambarella from a "buy" rating to a "hold" rating in a research report on Friday, May 29th. Finally, Stifel Nicolaus reduced their price target on shares of Ambarella from $106.00 to $90.00 and set a "buy" rating for the company in a report on Friday, September 4th. Five investment 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. Based on data from MarketBeat, Ambarella presently has a consensus rating of "Hold" and an average price target of $89.56.

Ambarella Price Performance

The stock has a fifty day moving average of $71.63 and a 200 day moving average of $68.37. The firm has a market capitalization of $3.07 billion, a P/E ratio of -54.13 and a beta of 2.09.

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

Insider Buying and Selling at Ambarella

In related news, VP Chi-Hong Ju sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of the transaction, the vice president owned 155,924 shares of the company's stock, valued at approximately $13,852,288.16. The trade was a 6.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Chan W. Lee sold 2,893 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $64.83, for a total transaction of $187,553.19. Following the sale, the insider directly owned 154,443 shares in the company, valued at $10,012,539.69. This trade represents a 1.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 48,468 shares of company stock worth $3,878,932. 4.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AMBA. Legal & General Group Plc grew its position in Ambarella by 18.4% during the fourth quarter. Legal & General Group Plc now owns 614,017 shares of the semiconductor company's stock worth $43,497,000 after buying an additional 95,218 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of 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 worth $81,644,000 after purchasing an additional 524,937 shares in the last quarter. SBI Okasan Asset Management Co.Ltd. bought a new position in shares of Ambarella in the fourth quarter worth approximately $1,345,000. Bank of America Corp DE raised its stake in Ambarella by 7.8% in the first quarter. Bank of America Corp DE now owns 481,758 shares of the semiconductor company's stock valued at $24,798,000 after purchasing an additional 34,843 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in Ambarella by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company's stock valued at $72,305,000 after purchasing an additional 35,510 shares in the last quarter. 82.09% of the stock is owned by institutional investors.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing and artificial intelligence at the edge. Its technology is designed to help devices capture, process, analyze and transmit high-quality video while reducing the need to send data to cloud-based systems.

The company's product portfolio includes its CVflow family of AI vision processors, video processors and related software. These solutions support computer vision and machine learning applications in security cameras, automotive systems, advanced driver-assistance systems, robotics, industrial equipment and consumer devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets globally through its semiconductor products and technology partnerships.

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