Mobileye Global (NASDAQ:MBLY) Reaches New 1-Year Low - Time to Sell?

Key Points

• Mobileye shares fell 5.9% to a new 52-week low of $6.40, well below their 50-day and 200-day moving averages, amid concerns about near-term growth and profitability.
• Analyst sentiment has weakened and remains divided: Zacks downgraded the stock to “hold,” several firms cut price targets, and MarketBeat reports an overall “hold” rating with an average target of $11.08.
• Mobileye is scheduled to report earnings next week. While its prior quarter beat estimates and recent safety certification support its long-term outlook, analysts expect competitive pressure, a potential 5%–6% revenue decline, and further gross-margin contraction.

Mobileye Global Inc. (NASDAQ:MBLY - Get Free Report) shares reached a new 52-week low on Saturday. The stock traded as low as $6.40 and last traded at $6.54, with a volume of 13,247,757 shares changing hands. The stock had previously closed at $6.95.

Mobileye Global News Roundup

Here are the key news stories impacting Mobileye Global this week:

• Positive Sentiment: Mobileye’s recent safety certification supports its long-term competitive position in advanced driver-assistance and autonomous-driving technology. However, analysts argue that the certification may already be reflected in the stock’s valuation. Mobileye Stock Looks Priced At A Premium Despite Safety Certification
• Positive Sentiment: One earnings-preview analysis remains constructive on Mobileye’s long-term prospects, citing a depressed valuation and potential upside if the company can overcome near-term sales and margin pressure. Mobileye A Worthwhile Bet At This Price
• Neutral Sentiment: Mobileye is scheduled to report earnings next week. Wall Street expects earnings growth, but analysts see limited evidence of the combination of earnings and revenue trends typically associated with a likely beat. Mobileye Reports Next Week
• Negative Sentiment: Zacks Research downgraded Mobileye from “strong buy” to “hold,” while TD Cowen cut its price target. The actions indicate reduced confidence in near-term upside and contributed to the stock’s gap lower. Mobileye Shares Gap Down on Analyst Downgrade Mobileye Stock Gets Price Target Cut from TD Cowen
• Negative Sentiment: Analysts remain divided over Mobileye’s growth outlook, with concerns that competitive pressure could drive a 5%–6% year-over-year revenue decline and further gross-margin contraction in the near term. Mobileye Stock Gets Fair Value Trim
• Negative Sentiment: Mobileye’s decline contrasted with gains in BlackBerry, suggesting investors may currently favor certain automotive-software opportunities over Mobileye’s chip and ADAS exposure. Mobileye Sinks While BlackBerry Rises

Analyst Ratings Changes

Several brokerages have commented on MBLY. TD Cowen lowered their price objective on shares of Mobileye Global from $9.00 to $8.00 and set a "buy" rating on the stock in a research report on Monday, October 19th. Barclays reissued an "equal weight" rating and set a $9.00 target price (down from $14.00) on shares of Mobileye Global in a research report on Wednesday, September 30th. Citigroup assumed coverage on Mobileye Global in a research note on Friday, October 16th. They issued a "buy" rating and a $11.00 price objective on the stock. UBS Group dropped their price objective on Mobileye Global from $9.00 to $7.50 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. Finally, Zacks Research lowered Mobileye Global from a "strong-buy" rating to a "hold" rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Mobileye Global has an average rating of "Hold" and an average target price of $11.08.

Mobileye Global Trading Down 5.9%

The firm has a market cap of $5.49 billion, a PE ratio of -1.31, a price-to-earnings-growth ratio of 2.25 and a beta of 1.25. The stock has a fifty day simple moving average of $7.91 and a two-hundred day simple moving average of $8.59.

Mobileye Global (NASDAQ:MBLY - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.13. Mobileye Global had a negative net margin of 201.49% and a positive return on equity of 0.70%. The firm had revenue of $508.00 million for the quarter, compared to the consensus estimate of $480.51 million. During the same period in the prior year, the firm posted ($0.08) earnings per share. The company's revenue for the quarter was up .4% on a year-over-year basis. As a group, sell-side analysts predict that Mobileye Global Inc. will post 0.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Mobileye Global

In other Mobileye Global news, Director Frank D. Yeary purchased 12,360 shares of the stock in a transaction on Thursday, July 30th. The shares were purchased at an average price of $7.98 per share, with a total value of $98,632.80. Following the acquisition, the director directly owned 12,360 shares in the company, valued at approximately $98,632.80. The trade was a ∞ increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Safroadu Yeboah-Amankwah purchased 11,841 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were acquired at an average price of $8.46 per share, with a total value of $100,174.86. Following the transaction, the director owned 84,336 shares in the company, valued at approximately $713,482.56. The trade was a 16.33% increase in their position. The disclosure for this purchase is available in the SEC filing. 10.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Mobileye Global

Several hedge funds have recently bought and sold shares of the stock. Financial Management Professionals Inc. grew its position in Mobileye Global by 176.4% during the third quarter. Financial Management Professionals Inc. now owns 4,231 shares of the company's stock valued at $31,000 after acquiring an additional 2,700 shares during the last quarter. Bogart Wealth LLC lifted its stake in Mobileye Global by 5,000.0% in the first quarter. Bogart Wealth LLC now owns 5,100 shares of the company's stock worth $35,000 after purchasing an additional 5,000 shares during the last quarter. Allworth Financial LP boosted its position in Mobileye Global by 63.6% during the second quarter. Allworth Financial LP now owns 3,947 shares of the company's stock valued at $38,000 after buying an additional 1,535 shares during the period. PNC Financial Services Group Inc. boosted its position in Mobileye Global by 204.9% during the first quarter. PNC Financial Services Group Inc. now owns 8,686 shares of the company's stock valued at $60,000 after buying an additional 5,837 shares during the period. Finally, Nykredit A S bought a new position in shares of Mobileye Global during the second quarter valued at about $77,000. 13.25% of the stock is currently owned by institutional investors.

About Mobileye Global

Mobileye Global Inc NASDAQ: MBLY develops advanced driver-assistance systems and autonomous driving technologies for vehicle manufacturers worldwide. Founded in 1999 and headquartered in Jerusalem, Israel, the company provides computer-vision and artificial-intelligence solutions designed to improve vehicle safety and support automated driving.

Its product portfolio includes EyeQ system-on-chips, camera-based driver-assistance features, and software for functions such as automatic emergency braking, lane-keeping assistance, adaptive cruise control, and traffic-sign recognition.

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