Ambarella (AMBA) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of Ambarella (NASDAQ:AMBA) from a hold rating to a sell rating in a research report report published on Wednesday morning.
According to Zacks, “Ambarella's Q3 results hurt from continued decline in revenues from consumer applications, including sports, VR and the drone cameras. This downtrend is expected to continue. Transition of the business away from consumer electronic applications toward computer vision coupled with geopolitical and macroeconomic challenges are taking a toll on the company’s revenues. Ambarella is also hurt by decline in chip sales to GoPro. Shares have underperformed the industry on a year-to-date basis. Nonetheless, Ambarella expects the demand for security cameras with computer vision capability to continue to grow, giving it an opportunity to increase its value contribution per camera, and hence boost top-line.”
Other equities analysts have also issued research reports about the stock. ValuEngine upgraded shares of Ambarella from a hold rating to a buy rating in a research report on Friday, September 7th. Stifel Nicolaus cut their target price on shares of Ambarella from $56.00 to $45.00 and set a buy rating for the company in a research report on Friday, August 31st. Dougherty & Co cut their target price on shares of Ambarella from $55.00 to $50.00 and set a buy rating for the company in a research report on Friday, August 31st. TheStreet lowered shares of Ambarella from a c- rating to a d rating in a research report on Friday, November 30th. Finally, Deutsche Bank cut their price objective on shares of Ambarella from $44.00 to $38.00 and set a hold rating for the company in a research report on Friday, August 31st. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $48.95.
Ambarella (NASDAQ:AMBA) last issued its earnings results on Thursday, November 29th. The semiconductor company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.27) by ($0.01). The business had revenue of $57.30 million for the quarter, compared to the consensus estimate of $57.12 million. Ambarella had a negative return on equity of 5.21% and a negative net margin of 9.97%. Ambarella’s revenue for the quarter was down 35.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.75 EPS. On average, sell-side analysts expect that Ambarella will post -1.02 EPS for the current fiscal year.
In other news, EVP George Laplante sold 4,016 shares of the firm’s stock in a transaction that occurred on Wednesday, September 19th. The shares were sold at an average price of $35.53, for a total value of $142,688.48. Following the completion of the transaction, the executive vice president now directly owns 100,002 shares in the company, valued at $3,553,071.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher Day sold 1,533 shares of the firm’s stock in a transaction that occurred on Wednesday, September 19th. The shares were sold at an average price of $35.51, for a total transaction of $54,436.83. The disclosure for this sale can be found here. Insiders sold 41,283 shares of company stock valued at $1,536,141 over the last 90 days. 5.84% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in AMBA. Migdal Insurance & Financial Holdings Ltd. raised its stake in Ambarella by 13.0% in the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 13,434 shares of the semiconductor company’s stock valued at $520,000 after purchasing an additional 1,544 shares in the last quarter. Scout Investments Inc. raised its stake in Ambarella by 2.2% in the third quarter. Scout Investments Inc. now owns 74,489 shares of the semiconductor company’s stock valued at $2,881,000 after purchasing an additional 1,600 shares in the last quarter. Greenleaf Trust raised its stake in Ambarella by 2.6% in the third quarter. Greenleaf Trust now owns 64,728 shares of the semiconductor company’s stock valued at $2,504,000 after purchasing an additional 1,621 shares in the last quarter. Krane Funds Advisors LLC raised its stake in Ambarella by 32.4% in the third quarter. Krane Funds Advisors LLC now owns 10,099 shares of the semiconductor company’s stock valued at $391,000 after purchasing an additional 2,469 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its stake in Ambarella by 11.9% in the second quarter. Russell Investments Group Ltd. now owns 23,759 shares of the semiconductor company’s stock valued at $918,000 after purchasing an additional 2,533 shares in the last quarter. Institutional investors own 80.17% of the company’s stock.
Ambarella Company Profile
Ambarella, Inc develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, computer vision functionality, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.
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