Ambarella (NASDAQ:AMBA) Trading 9.2% Higher – Still a Buy?

Ambarella, Inc. (NASDAQ:AMBA) was up 9.2% during mid-day trading on Tuesday . The company traded as high as $70.20 and last traded at $73.18. Approximately 210,544 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 1,078,587 shares. The stock had previously closed at $67.01.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on AMBA shares. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Susquehanna boosted their price objective on Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, May 29th. Bank of America upped their target price on Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Northland Securities set a $101.00 target price on Ambarella in a research note on Wednesday, June 17th. Finally, Stifel Nicolaus set a $106.00 target price on Ambarella in a research note on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ambarella has an average rating of “Moderate Buy” and a consensus target price of $100.50.

Ambarella Trading Up 22.8%

The business has a fifty day simple moving average of $72.15 and a 200 day simple moving average of $66.33. The stock has a market capitalization of $3.61 billion, a P/E ratio of -50.95 and a beta of 2.15.

Ambarella (NASDAQ:AMBA) last announced its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.11. The company had revenue of $100.36 million for 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%.Ambarella’s quarterly revenue was up 16.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 earnings per share. As a group, research analysts forecast that Ambarella, Inc. will post -1.13 earnings per share for the current year.

Insider Buying and Selling

In other Ambarella news, CFO John Alexander Young sold 5,033 shares of the business’s stock in a transaction 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 transaction, the chief financial officer owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. The trade was a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Yun-Lung Chen sold 9,856 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $67.06, for a total value of $660,943.36. Following the completion of the transaction, the vice president directly owned 66,515 shares in the company, valued at approximately $4,460,495.90. This represents a 12.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 60,932 shares of company stock valued at $4,873,601 over the last quarter. Corporate insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

A number of hedge funds have recently made changes to their positions in the business. Advisory Services Network LLC purchased a new position in shares of Ambarella in the 3rd quarter worth about $33,000. EverSource Wealth Advisors LLC increased its holdings 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 buying an additional 326 shares during the last quarter. 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. Steward Partners Investment Advisory LLC increased its holdings 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 buying an additional 325 shares during the last quarter. Finally, Cassaday & Co Wealth Management LLC bought a new stake in Ambarella in the first quarter worth about $30,000. 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.