Ambarella (NASDAQ:AMBA) Trading Down 5.3% - What's Next?

Key Points

• Ambarella shares fell 5.3% to $63.58, with trading volume about 24% above the average session level.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $101.86, while targets from several firms range from $101 to $110.
• Institutional investors own 82.09% of the company and have recently increased their stakes, while insiders sold 58,519 shares worth approximately $4.6 million during the last quarter.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report)'s share price dropped 5.3% on Thursday . The company traded as low as $63.25 and last traded at $63.58. Approximately 1,560,391 shares changed hands during mid-day trading, an increase of 24% from the average session volume of 1,262,576 shares. The stock had previously closed at $67.14.

Analyst Ratings Changes

AMBA has been the subject of several research analyst reports. Consumer Edge restated a "buy" rating on shares of Ambarella in a research report on Friday, May 22nd. Northland Securities set a $101.00 price objective on Ambarella in a research report on Wednesday, June 17th. Stifel Nicolaus set a $106.00 target price on Ambarella in a research report on Friday, May 29th. Susquehanna boosted their target price on Ambarella from $80.00 to $110.00 and gave the stock a "positive" rating in a research report on Friday, May 29th. Finally, Summit Insights lowered Ambarella from a "buy" rating to a "hold" rating in a research note on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $101.86.

Ambarella Stock Performance

The company has a market cap of $2.78 billion, a price-to-earnings ratio of -39.36 and a beta of 2.09. The firm's 50-day moving average price is $74.33 and its 200 day moving average price is $68.25.

Insider Transactions at Ambarella

In other news, CFO John Alexander Young sold 5,033 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total value of $339,928.82. Following the transaction, the chief financial officer owned 112,590 shares of the company's stock, valued at $7,604,328.60. This represents a 4.28% decrease in their position. The transaction 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, CEO Feng-Ming Wang sold 16,250 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $90.08, for a total value of $1,463,800.00. Following the completion of the transaction, the chief executive officer owned 773,607 shares in the company, valued at $69,686,518.56. This represents a 2.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 58,519 shares of company stock valued at $4,595,475. 4.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ambarella

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMBA. California State Teachers Retirement System boosted its holdings in Ambarella by 8,490.9% during the second quarter. California State Teachers Retirement System now owns 4,116,598 shares of the semiconductor company's stock worth $353,204,000 after buying an additional 4,068,680 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in shares of Ambarella by 2,312.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company's stock worth $61,250,000 after buying an additional 828,773 shares during the period. UBS Group AG increased its stake in shares of Ambarella by 379.3% in the 3rd quarter. UBS Group AG now owns 821,747 shares of the semiconductor company's stock valued at $67,811,000 after acquiring an additional 650,306 shares during the last quarter. Squarepoint Ops LLC bought a new stake in shares of Ambarella in the 2nd quarter valued at about $36,810,000. Finally, The Manufacturers Life Insurance Company raised its position in shares of 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 acquiring an additional 524,937 shares during the period. Institutional investors own 82.09% of the company's stock.

About Ambarella

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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