Mobileye Global (NASDAQ:MBLY) Shares Gap Down Following Analyst Downgrade

Key Points

• Mobileye shares fell 4.2% after Royal Bank of Canada downgraded the stock from “sector perform” to “underperform” and cut its price target to $5 from approximately $7.30.
• Analyst sentiment is mixed: Mobileye has an average “Hold” rating and an average price target of $11.08, despite several firms maintaining “Buy” recommendations.
• Two directors recently purchased a combined 24,201 shares, while institutional investors own 13.25% of the company. Mobileye’s latest quarterly results exceeded expectations, with adjusted earnings of $0.19 per share and revenue of $508 million.

Mobileye Global Inc. (NASDAQ:MBLY - Get Free Report) shares gapped down prior to trading on Wednesday after Royal Bank Of Canada downgraded the stock from a sector perform rating to an underperform rating. The stock had previously closed at $7.30, but opened at $7.04. Royal Bank Of Canada now has a $5.00 price target on the stock. Mobileye Global shares last traded at $7.0550, with a volume of 1,062,965 shares traded.

MBLY has been the subject of several other reports. Berenberg Bank raised shares of Mobileye Global from a "hold" rating to a "buy" rating and set a $11.00 price objective for the company in a research note on Monday, August 17th. Needham & Company LLC reissued a "buy" rating and issued a $13.00 target price on shares of Mobileye Global in a research note on Friday, July 24th. Tigress Financial reduced their target price on shares of Mobileye Global from $25.00 to $18.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. TD Cowen lowered their target price on shares of Mobileye Global from $9.00 to $8.00 and set a "buy" rating for the company in a report on Monday. Finally, JPMorgan Chase & Co. dropped their price target on shares of Mobileye Global from $10.00 to $9.00 and set a "neutral" rating for the company in a research note on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $11.08.

Insider Transactions at Mobileye Global

In related news, Director Frank D. Yeary bought 12,360 shares of the company's stock in a transaction on Thursday, July 30th. The shares were acquired at an average cost of $7.98 per share, for a total transaction of $98,632.80. Following the purchase, the director directly owned 12,360 shares of the company's stock, valued at approximately $98,632.80. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Safroadu Yeboah-Amankwah bought 11,841 shares of the company's stock in a transaction on Thursday, August 6th. The stock was bought at an average price of $8.46 per share, for a total transaction of $100,174.86. Following the completion of the purchase, the director directly owned 84,336 shares in the company, valued at approximately $713,482.56. This represents a 16.33% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 10.00% of the company's stock.

Institutional Trading of Mobileye Global

A number of hedge funds have recently added to or reduced their stakes in the business. Robeco Institutional Asset Management B.V. acquired a new position in Mobileye Global during the 3rd quarter valued at about $431,000. Prime Capital Investment Advisors LLC purchased a new stake in Mobileye Global in the third quarter valued at about $122,000. Counterpoint Mutual Funds LLC acquired a new stake in Mobileye Global in the third quarter worth about $9,074,000. Vontobel Holding Ltd. boosted its holdings in Mobileye Global by 51.2% in the third quarter. Vontobel Holding Ltd. now owns 38,030 shares of the company's stock worth $281,000 after acquiring an additional 12,870 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in Mobileye Global by 6.9% in the third quarter. Assenagon Asset Management S.A. now owns 2,586,131 shares of the company's stock worth $19,112,000 after acquiring an additional 166,392 shares in the last quarter. 13.25% of the stock is owned by hedge funds and other institutional investors.

Mobileye Global Stock Down 4.2%

The firm has a market cap of $5.87 billion, a PE ratio of -1.40, a price-to-earnings-growth ratio of 2.39 and a beta of 1.25. The stock has a 50 day moving average price of $8.03 and a two-hundred day moving average price of $8.61.

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

Mobileye Global Company Profile

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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