Ambarella (NASDAQ:AMBA) Stock Price Breaks Below 200 Day Moving Average – Should You Sell?

Ambarella, Inc. (NASDAQ:AMBA) shares crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $69.31 and traded as low as $67.05. Ambarella shares last traded at $68.26, with a volume of 1,095,901 shares.

Wall Street Analyst Weigh In

Several equities research analysts have commented on AMBA shares. Craig Hallum downgraded shares of Ambarella from a “buy” rating to a “hold” rating and set a $70.00 price objective on the stock. in a report on Friday, September 4th. Bank of America reduced their target price on shares of Ambarella from $96.00 to $70.00 and set a “neutral” rating for the company in a research note on Friday, September 4th. Needham & Company LLC reissued a “buy” rating on shares of Ambarella in a research report on Friday, September 4th. Stifel Nicolaus dropped their price target on shares of Ambarella from $106.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, September 4th. Finally, Northland Securities set a $101.00 price objective on shares of Ambarella in a report on Wednesday, June 17th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $89.56.

Ambarella Trading Down 3.8%

The firm has a market cap of $2.88 billion, a PE ratio of -50.64 and a beta of 2.38. The stock has a fifty day simple moving average of $71.99 and a two-hundred day simple moving average of $69.40.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.03%. The firm had revenue of $108.12 million for the quarter, compared to the consensus estimate of $107.76 million. During the same period in the prior year, the firm posted $0.15 earnings per share. The company’s revenue for the quarter was up 13.2% on a year-over-year basis. As a group, sell-side analysts predict that Ambarella, Inc. will post -1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Ambarella news, CFO John Young sold 1,896 shares of the firm’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $67.28, for a total value of $127,562.88. Following the completion of the transaction, the chief financial officer directly owned 107,806 shares of the company’s stock, valued at $7,253,187.68. This trade represents a 1.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Feng-Ming Wang sold 6,086 shares of the business’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $64.83, for a total transaction of $394,555.38. Following the transaction, the chief executive officer owned 767,759 shares of the company’s stock, valued at $49,773,815.97. This trade represents a 0.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 22,218 shares of company stock worth $1,528,920. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Ambarella

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AMBA. Cim Investment Management Inc. grew its holdings in shares of Ambarella by 7.4% during the second quarter. Cim Investment Management Inc. now owns 6,443 shares of the semiconductor company’s stock worth $553,000 after purchasing an additional 445 shares in the last quarter. WINTON GROUP Ltd increased its position in shares of Ambarella by 517.3% in the second quarter. WINTON GROUP Ltd now owns 32,100 shares of the semiconductor company’s stock worth $2,754,000 after purchasing an additional 26,900 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in Ambarella in the second quarter valued at approximately $118,000. IFP Advisors Inc raised its stake in Ambarella by 70.4% in the second quarter. IFP Advisors Inc now owns 731 shares of the semiconductor company’s stock valued at $63,000 after purchasing an additional 302 shares in the last quarter. Finally, Arizona State Retirement System lifted its position in Ambarella by 2.2% during the second quarter. Arizona State Retirement System now owns 11,479 shares of the semiconductor company’s stock valued at $985,000 after purchasing an additional 246 shares during the last quarter. 82.09% of the stock is currently owned by hedge funds and other institutional investors.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops system-on-chip (SoC) products for edge artificial intelligence, computer vision and video processing applications. Its technologies are designed to help devices capture, analyze and process visual data locally, reducing the need to send all information to cloud-based systems.

The company’s product portfolio includes its CVflow family of edge AI processors, video processors and camera-focused SoCs. These products support applications such as advanced driver-assistance systems and automotive cameras, security and surveillance systems, robotics, industrial automation, consumer cameras and other intelligent imaging devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets internationally.