Ambarella (NASDAQ:AMBA) Stock Price Up 5.4% – Still a Buy?

Ambarella, Inc. (NASDAQ:AMBA)’s share price rose 5.4% on Monday . The stock traded as high as $65.46 and last traded at $65.1540. Approximately 399,911 shares traded hands during trading, a decline of 66% from the average daily volume of 1,184,785 shares. The stock had previously closed at $61.84.

Analyst Ratings Changes

A number of brokerages have issued reports on AMBA. Weiss Ratings upgraded Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. Rosenblatt Securities lifted their price objective on shares of Ambarella from $115.00 to $120.00 in a research note on Tuesday, June 30th. Consumer Edge restated a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Stifel Nicolaus set a $106.00 price objective on shares of Ambarella in a report on Friday, May 29th. Finally, Northland Securities set a $101.00 target price on shares of Ambarella in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $101.12.

Ambarella Price Performance

The stock has a market cap of $3.13 billion, a P/E ratio of -44.29 and a beta of 2.11. The company has a fifty day moving average of $74.16 and a 200 day moving average of $66.51.

Ambarella (NASDAQ:AMBA) last released its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.11. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The firm had revenue of $100.36 million during the quarter, compared to the consensus estimate of $100.12 million. During the same period in the prior year, the firm posted $0.07 earnings per share. The firm’s revenue for the quarter was up 16.9% compared to the same quarter last year. As a group, analysts anticipate that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Buying and Selling

In other news, VP Yun-Lung Chen sold 5,958 shares of the firm’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $78.66, for a total transaction of $468,656.28. Following the completion of the transaction, the vice president owned 60,557 shares in the company, valued at approximately $4,763,413.62. This trade represents a 8.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Feng-Ming Wang sold 16,250 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $90.08, for a total transaction of $1,463,800.00. Following the sale, the chief executive officer directly owned 773,607 shares of the company’s stock, valued at approximately $69,686,518.56. This represents a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 91,419 shares of company stock worth $7,591,700 in the last ninety days. Insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Ambarella

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. GSA Capital Partners LLP lifted its stake in Ambarella by 145.2% during the fourth quarter. GSA Capital Partners LLP now owns 24,800 shares of the semiconductor company’s stock valued at $1,757,000 after buying an additional 14,685 shares in the last quarter. Legal & General Group Plc increased its position in shares of Ambarella by 18.4% in the fourth quarter. Legal & General Group Plc now owns 614,017 shares of the semiconductor company’s stock worth $43,497,000 after acquiring an additional 95,218 shares in the last quarter. SBI Okasan Asset Management Co.Ltd. acquired a new stake in shares of Ambarella during the fourth quarter valued at approximately $1,345,000. Leonteq Securities AG acquired a new stake in shares of Ambarella during the fourth quarter valued at approximately $1,903,000. Finally, Handelsbanken Fonder AB lifted its position in shares of Ambarella by 84.0% in the 4th quarter. Handelsbanken Fonder AB now owns 312,326 shares of the semiconductor company’s stock valued at $22,125,000 after acquiring an additional 142,551 shares in the last quarter. Institutional investors and hedge funds own 82.09% of the company’s stock.

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.