Ambarella (NASDAQ:AMBA) Stock Rating Lowered by Craig Hallum

Ambarella (NASDAQ:AMBA) was downgraded by research analysts at Craig Hallum from a “buy” rating to a “hold” rating in a research report issued on Friday, MarketBeat Ratings reports. They currently have a $70.00 target price on the semiconductor company’s stock. Craig Hallum’s price objective suggests a potential upside of 10.44% from the stock’s current price.

AMBA has been the topic of several other research reports. Oppenheimer reissued a “market perform” rating on shares of Ambarella in a research report on Friday. Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Bank of America boosted their price objective on shares of Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Rosenblatt Securities restated a “buy” rating and issued a $120.00 target price on shares of Ambarella in a report on Monday. Finally, Susquehanna upped their price target on shares of Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a report on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Ambarella has an average rating of “Hold” and an average price target of $94.22.

Ambarella Stock Down 5.6%

AMBA stock opened at $63.38 on Friday. The business’s 50-day moving average price is $74.31 and its 200-day moving average price is $68.23. The stock has a market cap of $2.78 billion, a P/E ratio of -39.37 and a beta of 2.09. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.01. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The company had revenue of $108.12 million during the quarter, compared to analysts’ expectations of $107.76 million. During the same period last year, the company posted $0.15 earnings per share. Ambarella’s quarterly revenue was up 13.2% on a year-over-year basis. On average, equities research analysts expect that Ambarella will post -1.13 earnings per share for the current fiscal year.

Insider Buying and Selling at Ambarella

In other news, insider Chan W. Lee sold 2,951 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the transaction, the insider directly owned 157,098 shares of the company’s stock, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Yun-Lung Chen sold 5,958 shares of the stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $78.66, for a total value of $468,656.28. Following the completion of the transaction, the vice president directly owned 60,557 shares in the company, valued at $4,763,413.62. This trade represents a 8.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 58,519 shares of company stock valued at $4,595,475. Corporate insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Essential Partners LLC raised its holdings 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 buying an additional 228 shares during the period. EverSource Wealth Advisors LLC grew its holdings in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 326 shares in the last quarter. Cassaday & Co Wealth Management LLC purchased a new position in Ambarella during the 1st quarter valued at about $30,000. Financial Management Professionals Inc. bought a new position in shares of Ambarella in the second quarter valued at approximately $32,000. Finally, Advisory Services Network LLC bought a new position in shares of Ambarella in the third quarter valued at approximately $33,000. Hedge funds and other institutional investors own 82.09% of the company’s stock.

Key Headlines Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 2027 revenue of $108.1 million, up 13.2% year over year, and non-GAAP earnings of $0.18 per share, narrowly exceeding consensus estimates. GAAP net loss improved substantially to $6.7 million from $20.0 million a year earlier. Ambarella fiscal second-quarter results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, roughly in line with the $119.3 million analyst consensus, while citing record edge-AI revenue and strong demand for its 5nm CV75 and CV72 AI SoCs. Ambarella Q3 revenue outlook
• Positive Sentiment: New long-term agreements with Macnica and Capgemini are intended to expand Ambarella’s distribution, engineering and systems-integration reach across the Americas, EMEA and enterprise edge- and physical-AI markets. The initiatives could support future design wins and revenue growth, although financial contributions were not quantified. Ambarella Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya reiterated a Hold rating, citing Ambarella’s elevated valuation and near-term uncertainty around margins, with only modest upside to his price objective. Bank of America Ambarella rating
• Negative Sentiment: GAAP gross margin fell to 57.7% from 58.9% year over year, and management expects Q3 non-GAAP gross margin of 59% to 60%, signaling limited near-term profitability expansion.
• Negative Sentiment: Despite improved adjusted profitability, Ambarella remains GAAP-unprofitable, and its cash balance declined modestly from the prior quarter. Ongoing investment in products and market expansion may continue to weigh on earnings.

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.