Ambarella (NASDAQ:AMBA) Trading Up 17.9% – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA)’s stock price rose 17.9% during trading on Friday . The company traded as high as $78.24 and last traded at $87.3550. Approximately 887,582 shares changed hands during trading, a decline of 28% from the average daily volume of 1,228,830 shares. The stock had previously closed at $74.09.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Stifel Nicolaus set a $106.00 price target on Ambarella in a research report on Friday, May 29th. Northland Securities set a $101.00 price objective on shares of Ambarella in a report on Wednesday, June 17th. Bank of America boosted their target price on shares of Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Weiss Ratings raised shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, July 10th. Finally, Summit Insights downgraded shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. One investment 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 given a Sell rating to the company’s stock. According to MarketBeat, Ambarella presently has an average rating of “Moderate Buy” and a consensus target price of $101.12.

Ambarella Trading Up 17.9%

The stock has a 50-day simple moving average of $72.59 and a 200-day simple moving average of $66.33. The company has a market cap of $3.83 billion, a price-to-earnings ratio of -54.54 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 (EPS) for the quarter, hitting the consensus estimate of $0.11. The company had revenue of $100.36 million during the quarter, compared to analysts’ expectations of $100.12 million. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The company’s revenue for the quarter was up 16.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.07 earnings per share. As a group, research analysts expect that Ambarella, Inc. will post -1.13 EPS for the current fiscal year.

Insider Transactions at Ambarella

In other Ambarella news, VP Yun-Lung Chen sold 9,856 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $67.06, for a total transaction of $660,943.36. Following the transaction, the vice president owned 66,515 shares of the company’s stock, valued at approximately $4,460,495.90. This trade represents a 12.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Chi-Hong Ju sold 10,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total transaction of $888,400.00. Following the sale, the vice president owned 155,924 shares in the company, valued at $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 91,419 shares of company stock worth $7,591,700 over the last ninety days. Insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Essential Partners LLC lifted its position in Ambarella by 90.1% in the first 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 period. EverSource Wealth Advisors LLC raised its stake in shares of Ambarella by 362.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after buying an additional 326 shares in the last quarter. Cassaday & Co Wealth Management LLC bought a new stake in shares of Ambarella in the 1st quarter worth $30,000. Financial Management Professionals Inc. acquired a new stake in shares of Ambarella in the second quarter valued at $32,000. Finally, Advisory Services Network LLC acquired a new stake in shares of Ambarella in the third quarter valued at $33,000. Institutional investors and hedge funds own 82.09% of the company’s stock.

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.