Weiss Ratings Reiterates Sell (D-) Rating for Ambarella (NASDAQ:AMBA)

Key Points

• Weiss Ratings has reaffirmed its "sell (D-)" rating for Ambarella, indicating concerns about the company's stock performance.
• Recently, multiple analysts provided varying ratings for Ambarella, with Northland Securities raising its price target to $95 and issuing an "outperform" rating, while the overall consensus remains a "Moderate Buy" with a target price of $93.88.
• Ambarella's latest earnings report showed a profit of $0.15 per share, exceeding expectations and reflecting a significant revenue increase of 49.9% year-over-year.

Ambarella (NASDAQ:AMBA - Get Free Report)'s stock had its "sell (d-)" rating reissued by equities researchers at Weiss Ratings in a research note issued on Friday,Weiss Ratings reports.

Other research analysts have also issued reports about the company. Northland Securities increased their price objective on Ambarella from $75.00 to $95.00 and gave the stock an "outperform" rating in a research note on Friday, August 29th. Stifel Nicolaus raised their target price on Ambarella from $80.00 to $90.00 and gave the company a "buy" rating in a research note on Friday, August 29th. Summit Insights upgraded Ambarella from a "hold" rating to a "buy" rating in a research note on Friday, August 29th. Oppenheimer restated a "market perform" rating on shares of Ambarella in a research note on Friday, August 29th. Finally, Roth Capital restated a "neutral" rating on shares of Ambarella in a research note on Friday, August 29th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Ambarella presently has a consensus rating of "Moderate Buy" and a consensus price target of $93.88.

Ambarella Trading Up 3.3%

AMBA stock traded up $2.75 during midday trading on Friday, hitting $86.20. The stock had a trading volume of 279,921 shares, compared to its average volume of 837,260. The firm has a market capitalization of $3.68 billion, a price-to-earnings ratio of -40.81 and a beta of 2.10. Ambarella has a 52 week low of $38.86 and a 52 week high of $93.44. The stock has a 50-day simple moving average of $79.97 and a 200 day simple moving average of $65.57.

Ambarella (NASDAQ:AMBA - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.10. Ambarella had a negative return on equity of 14.73% and a negative net margin of 25.46%.The firm had revenue of $95.51 million during the quarter, compared to analyst estimates of $90.01 million. During the same period in the prior year, the company posted ($0.13) earnings per share. The business's revenue for the quarter was up 49.9% compared to the same quarter last year. Ambarella has set its Q3 2026 guidance at EPS. On average, equities analysts forecast that Ambarella will post -2.81 EPS for the current year.

Insider Transactions at Ambarella

In other Ambarella news, CEO Feng-Ming Wang sold 4,928 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total transaction of $391,431.04. Following the transaction, the chief executive officer owned 788,929 shares in the company, valued at approximately $62,664,630.47. This trade represents a 0.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Chan W. Lee sold 1,947 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total value of $154,650.21. Following the transaction, the chief operating officer owned 126,972 shares in the company, valued at approximately $10,085,385.96. This trade represents a 1.51% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 35,227 shares of company stock valued at $2,875,131. 5.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ambarella

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMBA. EverSource Wealth Advisors LLC boosted its holdings in Ambarella by 362.2% during the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock worth $27,000 after buying an additional 326 shares during the last quarter. Total Investment Management Inc. bought a new position in shares of Ambarella during the 2nd quarter valued at about $30,000. CoreCap Advisors LLC bought a new position in shares of Ambarella during the 3rd quarter valued at about $43,000. Advisors Asset Management Inc. lifted its holdings in shares of Ambarella by 44.1% during the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 286 shares in the last quarter. Finally, Virtus Advisers LLC bought a new position in shares of Ambarella during the 2nd quarter valued at about $49,000. Institutional investors own 82.09% of the company's stock.

About Ambarella

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

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