Ambarella (NASDAQ:AMBA) Shares Down 8.9% – Time to Sell?

Shares of Ambarella, Inc. (NASDAQ:AMBA) dropped 8.9% on Tuesday . The stock traded as low as $73.32 and last traded at $72.6290. 251,093 shares were traded during mid-day trading, a decline of 78% from the average session volume of 1,164,541 shares. The stock had previously closed at $79.73.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Susquehanna increased their target price on shares of Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, May 29th. Consumer Edge restated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Ambarella in a research report on Friday, June 26th. Stifel Nicolaus set a $106.00 price objective on shares of Ambarella in a research note on Friday, May 29th. Finally, Bank of America boosted their price objective on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $101.12.

Ambarella Price Performance

The business has a 50-day moving average of $74.66 and a two-hundred day moving average of $66.59. The company has a market cap of $3.28 billion, a P/E ratio of -46.42 and a beta of 2.11.

Ambarella (NASDAQ:AMBA) last announced its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11. The business had revenue of $100.36 million during the quarter, compared to the consensus estimate of $100.12 million. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The firm’s revenue was up 16.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.07 earnings per share. Equities analysts anticipate that Ambarella, Inc. will post -1.13 EPS for the current fiscal year.

Insider Transactions at Ambarella

In related news, VP Yun-Lung Chen sold 9,856 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $67.06, for a total transaction of $660,943.36. Following the completion of the transaction, the vice president owned 66,515 shares in the company, valued at $4,460,495.90. The trade was a 12.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Chi-Hong Ju sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the sale, the vice president directly owned 155,924 shares of the company’s stock, valued at $13,852,288.16. The trade was a 6.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 87,432 shares of company stock worth $7,241,303. 4.50% of the stock is owned by corporate insiders.

Institutional Trading of Ambarella

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Hennion & Walsh Asset Management Inc. increased its position in Ambarella by 24.4% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 11,121 shares of the semiconductor company’s stock valued at $954,000 after buying an additional 2,184 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Ambarella in the second quarter valued at about $34,000. Red Spruce Capital LLC boosted its holdings in Ambarella by 39.2% in the second quarter. Red Spruce Capital LLC now owns 20,385 shares of the semiconductor company’s stock worth $1,749,000 after acquiring an additional 5,744 shares in the last quarter. Central Pacific Bank Trust Division acquired a new stake in Ambarella in the second quarter worth about $86,000. Finally, CoreCap Advisors LLC acquired a new stake in Ambarella in the second quarter worth about $139,000. Hedge funds and other 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.