Ambarella (NASDAQ:AMBA) Shares Down 8.9% – Here’s What Happened

Shares of Ambarella, Inc. (NASDAQ:AMBA) were down 8.9% on Wednesday . The stock traded as low as $67.25 and last traded at $66.40. 398,920 shares were traded during trading, a decline of 66% from the average session volume of 1,173,745 shares. The stock had previously closed at $72.90.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on AMBA. Rosenblatt Securities boosted their target price on shares of Ambarella from $115.00 to $120.00 in a report on Tuesday, June 30th. Weiss Ratings raised shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. Summit Insights lowered shares of Ambarella from a “buy” rating to a “hold” rating in a report on Friday, May 29th. Susquehanna boosted their price objective on shares of Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, May 29th. Finally, Consumer Edge restated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $101.12.

Ambarella Stock Performance

The stock has a fifty day simple moving average of $74.87 and a two-hundred day simple moving average of $66.59. The stock has a market cap of $2.78 billion, a PE ratio of -39.31 and a beta of 2.11.

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

Insider Transactions at Ambarella

In related news, insider Chan W. Lee sold 2,951 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the transaction, the insider owned 157,098 shares of the company’s stock, valued at approximately $10,662,241.26. This represents a 1.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO John Alexander Young sold 5,033 shares of Ambarella stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total value of $339,928.82. Following the sale, the chief financial officer owned 112,590 shares in the company, valued at $7,604,328.60. This represents a 4.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 93,390 shares of company stock valued at $7,709,960 in the last three months. 4.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AMBA. Essential Partners LLC increased its position in shares of Ambarella by 90.1% in the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 228 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of 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 purchasing an additional 326 shares during the last quarter. Cassaday & Co Wealth Management LLC acquired a new position in Ambarella in the first quarter worth about $30,000. Financial Management Professionals Inc. bought a new stake in Ambarella in the second quarter valued at about $32,000. Finally, Advisory Services Network LLC acquired a new stake in Ambarella during the third quarter valued at approximately $33,000. 82.09% of the stock is currently owned by institutional investors.

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.