Ambarella’s (AMBA) Hold Rating Reiterated at Zacks Investment Research
Zacks Investment Research restated their hold rating on shares of Ambarella (NASDAQ:AMBA) in a research note released on Monday.
According to Zacks, “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. The company’s efforts toward expanding its reach in other markets, such as IP security, automotive, non-GoPro wearables. This will lower dependency on GoPro and drive long-term growth. Estimates have been stable lately ahead of the company’s Q3 earnings release. The company has positive record of earnings surprises in recent quarters. However, the company is hurt by decline in chip sales to GoPro. Revenues from consumer applications, including sports, VR and the drone cameras continue to decline and is expected to fall further. The company expects this trend to continue throughout fiscal 2019, thereby compelling it to provide a pessimistic fiscal 2019 guidance. Shares have underperformed the industry on a year-to-date basis.”
A number of other brokerages also recently issued reports on AMBA. Bank of America initiated coverage on shares of Ambarella in a research note on Tuesday, July 17th. They issued a neutral rating and a $42.00 price target for the company. Stifel Nicolaus decreased their price target on shares of Ambarella from $56.00 to $45.00 and set a buy rating for the company in a research note on Friday, August 31st. Needham & Company LLC reissued a hold rating on shares of Ambarella in a report on Friday, August 31st. BidaskClub raised shares of Ambarella from a sell rating to a hold rating in a report on Tuesday, October 16th. Finally, Northland Securities began coverage on shares of Ambarella in a report on Monday, October 29th. They set an outperform rating and a $38.00 price objective on the stock. One analyst has rated the stock with a sell rating, eight have given a hold rating and six have issued a buy rating to the stock. Ambarella has an average rating of Hold and a consensus target price of $49.45.
Ambarella (NASDAQ:AMBA) last issued its quarterly earnings results on Thursday, August 30th. The semiconductor company reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.13 by $0.12. Ambarella had a negative net margin of 1.40% and a negative return on equity of 0.71%. The company had revenue of $62.47 million during the quarter, compared to the consensus estimate of $62.27 million. As a group, equities research analysts forecast that Ambarella will post -0.93 EPS for the current fiscal year.
In other news, CEO Feng-Ming Wang sold 10,727 shares of Ambarella stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $35.56, for a total value of $381,452.12. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Christopher Day sold 1,326 shares of Ambarella stock in a transaction on Thursday, September 6th. The shares were sold at an average price of $39.77, for a total transaction of $52,735.02. Following the completion of the transaction, the vice president now directly owns 16,353 shares in the company, valued at $650,358.81. The disclosure for this sale can be found here. In the last three months, insiders have sold 43,609 shares of company stock worth $1,628,876. 5.84% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. AMS Capital Ltda acquired a new position in shares of Ambarella in the 2nd quarter valued at $1,373,000. Pinnacle Associates Ltd. increased its holdings in shares of Ambarella by 5.8% in the 2nd quarter. Pinnacle Associates Ltd. now owns 953,325 shares of the semiconductor company’s stock valued at $36,808,000 after acquiring an additional 52,391 shares during the period. Marathon Capital Management acquired a new position in shares of Ambarella in the 2nd quarter valued at $270,000. ING Groep NV increased its holdings in shares of Ambarella by 846.4% in the 2nd quarter. ING Groep NV now owns 137,225 shares of the semiconductor company’s stock valued at $5,298,000 after acquiring an additional 122,725 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in shares of Ambarella by 11.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 23,759 shares of the semiconductor company’s stock valued at $918,000 after acquiring an additional 2,533 shares during the period. 69.28% of the stock is currently owned by institutional investors and hedge funds.
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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