Ambarella (NASDAQ:AMBA) Trading 8.9% Higher – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA)’s share price traded up 8.9% during mid-day trading on Monday . The company traded as high as $69.50 and last traded at $69.17. 1,366,100 shares traded hands during trading, an increase of 29% from the average session volume of 1,061,667 shares. The stock had previously closed at $63.52.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Bank of America increased their target price on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Summit Insights cut shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Rosenblatt Securities restated a “buy” rating and issued a $115.00 price objective on shares of Ambarella in a research report on Tuesday, May 26th. Consumer Edge restated a “buy” rating on shares of Ambarella in a research report on Friday, May 22nd. Finally, Stifel Nicolaus set a $106.00 price objective on shares of Ambarella in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $99.75.

Ambarella Trading Up 8.2%

The company has a market cap of $3.01 billion, a P/E ratio of -42.68 and a beta of 2.15. The firm’s 50 day moving average price is $67.67 and its 200-day moving average price is $67.66.

Ambarella (NASDAQ:AMBA) last issued its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.11. The company had revenue of $100.36 million for the quarter, compared to analyst estimates of $100.12 million. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The company’s revenue for the quarter was up 16.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.07 EPS. Analysts predict that Ambarella, Inc. will post -1.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Ambarella

In other news, CFO John Alexander Young sold 4,577 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total value of $241,528.29. Following the transaction, the chief financial officer owned 117,072 shares of the company’s stock, valued at approximately $6,177,889.44. This trade represents a 3.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Chan W. Lee sold 6,729 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total transaction of $355,089.33. Following the completion of the transaction, the insider directly owned 156,370 shares in the company, valued at $8,251,644.90. This trade represents a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 86,799 shares of company stock worth $5,877,902 over the last quarter. Company insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AMBA. Essential Partners LLC boosted its stake in Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after acquiring an additional 228 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 326 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new position in Ambarella during the 1st quarter worth approximately $30,000. Advisory Services Network LLC bought a new position in Ambarella during the 3rd quarter worth approximately $33,000. Finally, Steward Partners Investment Advisory LLC boosted its stake in Ambarella by 162.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock worth $37,000 after acquiring an additional 325 shares during the last quarter. 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.