Ambarella (NASDAQ:AMBA) Trading Down 5.3% – Should You Sell?

Ambarella, Inc. (NASDAQ:AMBA) shares were down 5.3% during mid-day trading on Thursday . The company traded as low as $63.25 and last traded at $63.58. 1,560,391 shares traded hands during mid-day trading, an increase of 24% from the average session volume of 1,262,576 shares. The stock had previously closed at $67.14.

Key Stories Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year and slightly above estimates, while non-GAAP EPS of $0.18 exceeded consensus. The company also forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with expectations. Ambarella fiscal Q2 results
• Positive Sentiment: Management highlighted record edge-AI revenue and announced long-term agreements with Macnica and Capgemini. The partnerships could expand distribution, systems integration, and enterprise adoption of Ambarella’s edge and physical AI products. Macnica strategic agreement
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and sees substantial potential appreciation despite reducing its price target from $106 to $90. Stifel price target update

Analyst Ratings Changes

AMBA has been the topic of several recent analyst reports. 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. Bank of America reduced their price target on shares of Ambarella from $96.00 to $70.00 and set a “neutral” rating on the stock in a research report on Friday. Rosenblatt Securities reissued a “buy” rating and issued a $120.00 price objective on shares of Ambarella in a report on Monday, August 31st. Oppenheimer reaffirmed a “market perform” rating on shares of Ambarella in a report on Friday. Finally, Roth Capital lowered their price target on Ambarella from $90.00 to $65.00 and set a “neutral” rating for the company in a report on Friday. Five investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Ambarella presently has an average rating of “Hold” and an average price target of $89.56.

Ambarella Price Performance

The stock’s fifty day simple moving average is $74.33 and its 200-day simple moving average is $68.20. The stock has a market cap of $2.76 billion, a P/E ratio of -48.75 and a beta of 2.09.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.17 by $0.01. The company had revenue of $108.12 million during the quarter, compared to analyst estimates of $107.76 million. Ambarella had a negative return on equity of 10.12% and a negative net margin of 13.48%.The business’s revenue was up 13.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.15 earnings per share. Analysts forecast that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Transactions at Ambarella

In other Ambarella news, VP Yun-Lung Chen sold 5,958 shares of the firm’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $78.66, for a total value of $468,656.28. Following the sale, the vice president directly owned 60,557 shares in the company, valued at approximately $4,763,413.62. This trade represents a 8.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO John Young sold 5,033 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the transaction, the chief financial officer directly owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. This trade represents a 4.28% decrease in their position. 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 sold 58,519 shares of company stock valued at $4,595,475 over the last three months. 4.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ambarella

A number of hedge funds have recently made changes to their positions in AMBA. California State Teachers Retirement System grew its holdings in Ambarella by 8,490.9% in the 2nd quarter. California State Teachers Retirement System now owns 4,116,598 shares of the semiconductor company’s stock worth $353,204,000 after buying an additional 4,068,680 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Ambarella by 2,312.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company’s stock worth $61,250,000 after purchasing an additional 828,773 shares in the last quarter. UBS Group AG increased its holdings in shares of Ambarella by 379.3% during the third quarter. UBS Group AG now owns 821,747 shares of the semiconductor company’s stock valued at $67,811,000 after purchasing an additional 650,306 shares during the period. Squarepoint Ops LLC acquired a new position in shares of Ambarella during the second quarter valued at $36,810,000. Finally, The Manufacturers Life Insurance Company raised its stake in shares of Ambarella by 49.5% during the first quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company’s stock valued at $81,644,000 after purchasing an additional 524,937 shares in the last quarter. Institutional investors 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.