Ambarella (NASDAQ:AMBA) Trading 8.9% Higher – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA)’s share price rose 8.9% on Monday . The stock traded as high as $69.50 and last traded at $69.17. Approximately 1,366,100 shares were traded during trading, an increase of 29% from the average daily volume of 1,061,667 shares. The stock had previously closed at $63.52.

Analyst Ratings Changes

A number of analysts recently issued reports on AMBA shares. Summit Insights cut Ambarella from a “buy” rating to a “hold” rating in a research note on Friday, May 29th. Susquehanna increased their price objective on shares of Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research report on Friday, May 29th. Bank of America increased their price objective on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Consumer Edge reissued a “buy” rating on shares of Ambarella in a research report on Friday, May 22nd. Finally, Rosenblatt Securities reissued a “buy” rating and set a $115.00 price objective on shares of Ambarella in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $99.75.

Ambarella Stock Up 8.2%

The company has a market capitalization of $3.01 billion, a price-to-earnings ratio of -42.68 and a beta of 2.15. The stock’s fifty day moving average price is $67.67 and its 200-day moving average price is $67.66.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) 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 company had revenue of $100.36 million for the quarter, compared to the consensus estimate of $100.12 million. During the same period last year, the company earned $0.07 earnings per share. The firm’s revenue was up 16.9% compared to the same quarter last year. Analysts anticipate that Ambarella, Inc. will post -1.27 EPS for the current year.

Insider Activity

In related news, CEO Feng-Ming Wang sold 32,500 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $91.01, for a total transaction of $2,957,825.00. Following the transaction, the chief executive officer directly owned 806,061 shares in the company, valued at approximately $73,359,611.61. The trade was a 3.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 4,729 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $249,549.33. Following the transaction, the vice president owned 164,166 shares in the company, valued at approximately $8,663,039.82. The trade was a 2.80% 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 86,799 shares of company stock valued at $5,877,902 in the last ninety days. Corporate insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Ambarella

A number of institutional investors have recently added to or reduced their stakes in AMBA. Essential Partners LLC increased its holdings in Ambarella by 90.1% during the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after buying an additional 228 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in 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 period. Cassaday & Co Wealth Management LLC bought a new position in Ambarella during the first quarter worth $30,000. Advisory Services Network LLC bought a new position in Ambarella during the third quarter worth $33,000. Finally, Steward Partners Investment Advisory LLC boosted its position in Ambarella by 162.5% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock worth $37,000 after purchasing an additional 325 shares during the period. 82.09% of the stock is currently owned by institutional investors and hedge funds.

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.