Ambarella (NASDAQ:AMBA) Shares Up 7.2% – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA)’s share price traded up 7.2% during mid-day trading on Wednesday . The company traded as high as $67.48 and last traded at $68.0790. Approximately 250,645 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 1,299,333 shares. The stock had previously closed at $63.48.

Wall Street Analysts Forecast Growth

AMBA has been the topic of a number of recent analyst reports. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Rosenblatt Securities restated a “buy” rating and issued a $120.00 target price on shares of Ambarella in a report on Monday, August 31st. Susquehanna lifted their price objective on Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, May 29th. Stifel Nicolaus cut their target price on shares of Ambarella from $106.00 to $90.00 and set a “buy” rating for the company in a research report on Friday, September 4th. Finally, Summit Insights cut Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $89.56.

Ambarella Stock Performance

The company has a market capitalization of $2.99 billion, a P/E ratio of -53.14 and a beta of 2.09. The business’s fifty day simple moving average is $73.81 and its 200-day simple moving average is $68.17.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, beating analysts’ consensus estimates 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 firm’s revenue was up 13.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.15 earnings per share. As a group, analysts forecast that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Buying and Selling

In related news, VP Chi-Hong Ju sold 10,000 shares of Ambarella stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of 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 position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO John Young sold 5,033 shares of Ambarella stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total value of $339,928.82. Following the sale, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 90 days. 4.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ambarella

Hedge funds have recently made changes to their positions in the stock. Financial Management Professionals Inc. acquired a new position in shares of Ambarella during the second quarter worth $32,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Ambarella in the second quarter valued at about $34,000. Advisory Services Network LLC purchased a new position in shares of Ambarella in the third quarter worth about $33,000. EverSource Wealth Advisors LLC raised its stake in shares of Ambarella by 362.2% in 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. Finally, Essential Partners LLC increased its stake in shares of 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 acquiring an additional 228 shares during the period. 82.09% of the stock is currently owned by hedge funds and other institutional investors.

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.