Ambarella (NASDAQ:AMBA) Stock Price Down 8.9% – What’s Next?

Ambarella, Inc. (NASDAQ:AMBA)’s share price dropped 8.9% on Wednesday . The company traded as low as $67.25 and last traded at $66.40. Approximately 398,920 shares were traded during trading, a decline of 66% from the average daily volume of 1,173,745 shares. The stock had previously closed at $72.90.

Analysts Set New Price Targets

AMBA has been the topic of a number of research analyst reports. Summit Insights cut Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Weiss Ratings upgraded shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday. Rosenblatt Securities increased their price objective on Ambarella from $115.00 to $120.00 in a research note on Tuesday, June 30th. Bank of America increased their price target on Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Finally, Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $101.12.

Ambarella Price Performance

The firm’s fifty day moving average is $75.22 and its 200-day moving average is $66.67. The stock has a market capitalization of $3.00 billion, a price-to-earnings ratio of -42.46 and a beta of 2.11.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.11. The business had revenue of $100.36 million during the quarter, compared to the consensus estimate of $100.12 million. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The business’s quarterly revenue was up 16.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.07 EPS. On average, sell-side analysts expect that Ambarella, Inc. will post -1.13 EPS for the current year.

Insider Buying and Selling at Ambarella

In other news, VP Chi-Hong Ju sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total value of $888,400.00. Following the completion of the transaction, the vice president directly owned 155,924 shares in the company, valued at $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Yun-Lung Chen sold 9,856 shares of Ambarella stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $67.06, for a total value of $660,943.36. Following the transaction, the vice president directly owned 66,515 shares in the company, valued at approximately $4,460,495.90. The trade was a 12.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 93,390 shares of company stock valued at $7,709,960. Corporate 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 AMBA. Vanguard Group Inc. raised its holdings in shares of Ambarella by 6.0% during the fourth quarter. Vanguard Group Inc. now owns 5,480,285 shares of the semiconductor company’s stock valued at $388,223,000 after acquiring an additional 311,649 shares during the period. State Street Corp lifted its stake in Ambarella by 8.9% during the second quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company’s stock worth $122,562,000 after purchasing an additional 151,694 shares during the period. Jericho Capital Asset Management L.P. increased its holdings in shares of Ambarella by 30.8% during the fourth quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company’s stock worth $112,429,000 after buying an additional 373,734 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Ambarella by 49.5% during 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 purchasing an additional 524,937 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Ambarella by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company’s stock valued at $72,305,000 after purchasing an additional 35,510 shares during 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.