Bank of America Lowers Ambarella (NASDAQ:AMBA) Price Target to $70.00

Ambarella (NASDAQ:AMBA) had its price target cut by analysts at Bank of America from $96.00 to $70.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has a “neutral” rating on the semiconductor company’s stock. Bank of America‘s price objective suggests a potential upside of 12.61% from the stock’s previous close.

AMBA has been the topic of a number of other research reports. Weiss Ratings upgraded Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, July 10th. Summit Insights downgraded Ambarella from a “buy” rating to a “hold” rating in a report on Friday, May 29th. Rosenblatt Securities restated a “buy” rating and set a $120.00 price objective on shares of Ambarella in a research note on Monday. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Finally, Northland Securities set a $101.00 target price on shares of Ambarella in a report on Wednesday, June 17th. Five equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $91.33.

Ambarella Trading Down 1.9%

Shares of AMBA traded down $1.22 on Friday, reaching $62.16. The company’s stock had a trading volume of 1,978,332 shares, compared to its average volume of 1,274,206. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69. The stock has a market capitalization of $2.73 billion, a PE ratio of -38.40 and a beta of 2.09. The firm has a fifty day moving average of $74.31 and a 200-day moving average of $68.23.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.01. The business had revenue of $108.12 million for the quarter, compared to analysts’ expectations of $107.76 million. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The firm’s revenue for the quarter was up 13.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.15 EPS. As a group, equities analysts anticipate that Ambarella will post -1.13 EPS for the current fiscal year.

Insider Buying and Selling at Ambarella

In other Ambarella news, VP Chi-Hong Ju sold 10,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total value of $888,400.00. Following the transaction, the vice president directly owned 155,924 shares in the company, valued at $13,852,288.16. This represents a 6.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO John Young sold 5,033 shares of Ambarella stock in a transaction dated 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 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 58,519 shares of company stock worth $4,595,475 in the last three months. 4.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Ambarella

Several institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System grew its position in Ambarella by 8,490.9% during 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 acquiring an additional 4,068,680 shares during the last quarter. Price T Rowe Associates Inc. MD increased 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 buying an additional 828,773 shares during the period. UBS Group AG raised its holdings in Ambarella by 379.3% during the 3rd quarter. UBS Group AG now owns 821,747 shares of the semiconductor company’s stock valued at $67,811,000 after buying an additional 650,306 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in Ambarella during the 2nd quarter valued at $36,810,000. Finally, The Manufacturers Life Insurance Company increased its position in shares of Ambarella by 49.5% in 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 acquiring an additional 524,937 shares during the period. 82.09% of the stock is currently owned by hedge funds and other institutional investors.

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, narrowly exceeding the $107.8 million consensus estimate. Non-GAAP EPS of $0.18 also topped expectations and increased from $0.15 a year earlier. Ambarella fiscal Q2 financial results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with the approximately $119.3 million analyst estimate, supporting expectations for continued edge-AI growth. Ambarella Q3 revenue guidance
• Positive Sentiment: Long-term agreements with Macnica and Capgemini could expand Ambarella’s distribution, engineering and systems-integration reach for edge and physical AI applications, although the revenue impact is not yet quantified. Ambarella and Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya maintained a Hold rating, citing elevated valuation and near-term margin uncertainty, while retaining a $96 price objective. Ambarella valuation and margin analysis
• Negative Sentiment: Craig Hallum downgraded Ambarella from Buy to Hold and set a $70 price target. The downgrade signals reduced conviction in the near-term upside following the earnings release. Craig Hallum downgrade
• Negative Sentiment: GAAP results remained unprofitable, with a $6.7 million net loss, while GAAP gross margin declined to 57.7% from 58.9% a year earlier. Management also expects fiscal Q3 non-GAAP gross margin of 59% to 60%, indicating continued margin pressure.
• Negative Sentiment: Reported insider activity remains a cautionary signal: company insiders recorded 23 open-market sales and no purchases over the past six months.

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.