Ambarella (AMBA) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Ambarella (NASDAQ:AMBA) from a sell rating to a hold rating in a report released on Wednesday.
According to Zacks, “Ambarella develops video compression and image processing semiconductors. We remain encouraged by the company’s efforts toward expanding its reach in other markets, such as IP security, automotive, non-GoPro wearable and drones/flying cameras and simultaneously lower dependency on GoPro. However, the company’s disappointing guidance for the forthcoming quarter makes us slightly cautious about its near-term prospect. The soft guidance provided by the company may be due to the number of challenges it has been facing. The company faces three main challenges, the risk of losing its largest customer, GoPro; weakness in the drone market and increasing threat from QUALCOMM, which is acquiring NXP Semiconductors to build its presence in the same space. Notably, the stock has underperformed the industry in the last one year.”
Other equities research analysts have also issued research reports about the company. Oppenheimer upgraded Ambarella from a market perform rating to a buy rating and set a $70.00 price objective on the stock in a research report on Wednesday, January 3rd. Stifel Nicolaus restated a buy rating and set a $62.00 price objective (up previously from $52.00) on shares of Ambarella in a research report on Wednesday, November 22nd. Vetr upgraded Ambarella from a hold rating to a buy rating and set a $61.51 price objective on the stock in a research report on Tuesday, December 5th. BidaskClub lowered Ambarella from a hold rating to a sell rating in a research report on Thursday, December 7th. Finally, Morgan Stanley upped their price target on Ambarella from $60.00 to $65.00 and gave the company an overweight rating in a research report on Wednesday, December 13th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the stock. Ambarella currently has an average rating of Hold and an average target price of $60.14.
Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Thursday, November 30th. The semiconductor company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.08. The business had revenue of $89.06 million for the quarter, compared to analyst estimates of $89.41 million. Ambarella had a return on equity of 7.87% and a net margin of 11.51%. Ambarella’s quarterly revenue was down 11.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.11 EPS. equities analysts forecast that Ambarella will post 0.7 earnings per share for the current year.
In other Ambarella news, CFO George Laplante sold 4,202 shares of the company’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $57.69, for a total value of $242,413.38. Following the sale, the chief financial officer now owns 102,941 shares in the company, valued at approximately $5,938,666.29. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Yun-Lung Chen sold 11,340 shares of the company’s stock in a transaction dated Monday, December 11th. The shares were sold at an average price of $59.80, for a total value of $678,132.00. Following the completion of the sale, the vice president now owns 11,386 shares in the company, valued at approximately $680,882.80. The disclosure for this sale can be found here. Insiders sold a total of 36,553 shares of company stock worth $2,145,108 in the last quarter. Corporate insiders own 5.80% of the company’s stock.
Large investors have recently made changes to their positions in the company. Victory Capital Management Inc. lifted its stake in shares of Ambarella by 53.4% in the 3rd quarter. Victory Capital Management Inc. now owns 3,437 shares of the semiconductor company’s stock valued at $168,000 after purchasing an additional 1,197 shares during the period. Turner Investments LLC acquired a new position in shares of Ambarella in the 3rd quarter valued at about $172,000. Amalgamated Bank lifted its stake in shares of Ambarella by 3.6% in the 2nd quarter. Amalgamated Bank now owns 4,126 shares of the semiconductor company’s stock valued at $200,000 after purchasing an additional 143 shares during the period. Aperio Group LLC acquired a new position in shares of Ambarella in the 3rd quarter valued at about $213,000. Finally, Belpointe Asset Management LLC acquired a new position in shares of Ambarella in the 3rd quarter valued at about $216,000. 63.08% of the stock is currently owned by institutional investors.
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Ambarella, Inc offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip.
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