Susquehanna Raises Ambarella (NASDAQ:AMBA) Price Target to $110.00

Key Points

• Susquehanna raised Ambarella’s price target from $80 to $110 and kept a positive rating, implying about 50.7% upside from the current share price.
• Ambarella’s stock fell sharply in the session, trading down to about $73.00 and down 20.5%, despite the analyst optimism.
• The company’s latest quarterly results were solid: EPS of $0.11 matched expectations and revenue of $100.36 million slightly beat estimates, with revenue up 16.9% year over year.

Ambarella (NASDAQ:AMBA - Get Free Report) had its price objective lifted by stock analysts at Susquehanna from $80.00 to $110.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has a "positive" rating on the semiconductor company's stock. Susquehanna's price target suggests a potential upside of 50.68% from the company's current price.

Several other equities analysts have also recently issued reports on the company. Rosenblatt Securities reaffirmed a "buy" rating and issued a $115.00 price objective on shares of Ambarella in a research report on Tuesday. Summit Insights cut Ambarella from a "buy" rating to a "hold" rating in a research note on Friday. Stifel Nicolaus set a $106.00 price target on Ambarella in a report on Friday. Consumer Edge reaffirmed a "buy" rating on shares of Ambarella in a research report on Friday, May 22nd. Finally, Bank of America reiterated a "neutral" rating on shares of Ambarella in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $99.25.

Ambarella Stock Down 20.5%

Ambarella stock traded down $18.84 during trading hours on Friday, hitting $73.00. The stock had a trading volume of 2,040,394 shares, compared to its average volume of 946,965. The stock has a market capitalization of $3.20 billion, a P/E ratio of -41.26 and a beta of 2.17. Ambarella has a 12-month low of $48.30 and a 12-month high of $96.69. The stock's 50-day moving average price is $65.50 and its 200-day moving average price is $68.42.

Ambarella (NASDAQ:AMBA - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, meeting analysts' consensus estimates of $0.11. The firm had revenue of $100.36 million for the quarter, compared to analysts' expectations of $100.12 million. Ambarella had a negative net margin of 19.42% and a negative return on equity of 12.16%. The business's revenue for the quarter was up 16.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.07 earnings per share. On average, research analysts expect that Ambarella will post -1.27 EPS for the current fiscal year.

Insider Transactions at Ambarella

In other Ambarella news, insider Chan W. Lee sold 6,729 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total value of $355,089.33. Following the transaction, the insider owned 156,370 shares of the company's stock, valued at approximately $8,251,644.90. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Feng-Ming Wang sold 50,000 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $60.80, for a total value of $3,040,000.00. Following the completion of the transaction, the chief executive officer directly owned 768,979 shares in the company, valued at $46,753,923.20. The trade was a 6.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 136,799 shares of company stock valued at $8,917,902. Corporate insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Ambarella

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in Ambarella by 6.0% during the fourth quarter. Vanguard Group Inc. now owns 5,480,285 shares of the semiconductor company's stock valued at $388,223,000 after buying an additional 311,649 shares during the last quarter. State Street Corp boosted its stake in shares of Ambarella by 8.9% during the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company's stock worth $122,562,000 after acquiring an additional 151,694 shares during the last quarter. Jericho Capital Asset Management L.P. grew its position in shares of Ambarella by 30.8% during 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 acquiring an additional 373,734 shares during the period. The Manufacturers Life Insurance Company grew its position in shares of Ambarella by 49.5% during 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. Finally, Geode Capital Management LLC increased its stake in shares of Ambarella by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company's stock worth $72,305,000 after purchasing an additional 35,510 shares in the last quarter. Institutional investors own 82.09% of the company's stock.

Trending Headlines about Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q1 revenue of $100.4 million, up 16.9% year over year, while EPS of $0.11 matched estimates and revenue slightly topped forecasts, signaling steady execution in its edge-AI chip business. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Positive Sentiment: The company guided second-quarter revenue to $105 million-$111 million, above Wall Street expectations at the midpoint, which suggests continued momentum into the next quarter. Ambarella outlines $105M-$111M Q2 revenue while Hanwha agreement targets $800M+ over 10+ years
• Positive Sentiment: Ambarella announced a long-term edge-AI agreement with Hanwha that could generate more than $800 million in potential revenue over 10+ years, reinforcing demand for its platform in robotics, industrial automation, and related markets. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: Analyst sentiment improved after the results, with Needham reiterating Buy and raising its target to $100 and Bank of America lifting its target to $96, both citing longer-term edge-AI upside. Quinn Bolton Reiterates Buy on Ambarella, Sets $100 DCF-Based Price Target on Strengthening Auto, Robotics, and Long-Term Deal Momentum
• Neutral Sentiment: CEO Feng-Ming Wang and CFO John Alexander Young disclosed pre-arranged 10b5-1 stock sales, which are often viewed as routine trading activity rather than a strong fundamental signal. MarketBeat AMBA insider transactions

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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