Ambarella (NASDAQ:AMBA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports. The firm presently has a $47.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s target price points to a potential upside of 2.53% from the stock’s previous close.

According to Zacks, “Ambarella is benefiting from its transition to a video AI company. Ramping up of production and shipments in the automotive and security camera market is a key driver. Ambarella’s CV portfolio is also attracting customers and helping it expand client base. Customers are also replacing products of HiSilicon with Ambarella, which is a positive for the company. Growing application of computer vision for ADAS and Driver Monitor System is a positive too. However, global tariff issues, export restrictions and hostile macroeconomic conditions remain concerns. Moreover, Ambarella predicts consumer electronics revenues to decline as a percentage of revenues over the next three years, which makes us apprehensive. Also, the pandemic coronavirus is likely to impact Ambarella's supply chain. The stock has underperformed the industry over the past year.”

Several other equities research analysts also recently weighed in on the company. Robert W. Baird initiated coverage on Ambarella in a report on Thursday, May 28th. They issued a “neutral” rating and a $60.00 price target for the company. Roth Capital lowered their price target on Ambarella from $65.00 to $50.00 and set a “neutral” rating for the company in a report on Friday. TheStreet downgraded Ambarella from a “c-” rating to a “d+” rating in a report on Friday, March 20th. BidaskClub raised Ambarella from a “sell” rating to a “hold” rating in a report on Friday, April 24th. Finally, Stifel Nicolaus lifted their target price on Ambarella from $60.00 to $62.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $59.77.

AMBA traded up $1.40 on Tuesday, hitting $45.84. The company had a trading volume of 2,618 shares, compared to its average volume of 772,415. The stock has a fifty day moving average price of $52.98 and a 200-day moving average price of $55.04. Ambarella has a 12-month low of $36.02 and a 12-month high of $73.59. The company has a debt-to-equity ratio of 0.02, a quick ratio of 8.48 and a current ratio of 8.91. The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of -35.77 and a beta of 1.24.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings results on Tuesday, June 2nd. The semiconductor company reported $0.04 earnings per share for the quarter, topping the consensus estimate of ($0.01) by $0.05. The business had revenue of $54.60 million during the quarter, compared to the consensus estimate of $54.32 million. Ambarella had a negative return on equity of 9.00% and a negative net margin of 18.18%. The company’s quarterly revenue was up 15.7% on a year-over-year basis. During the same quarter last year, the company earned $0.01 earnings per share. Analysts forecast that Ambarella will post -1.52 EPS for the current fiscal year.

In other news, Director Christopher B. Paisley sold 1,500 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $54.67, for a total value of $82,005.00. Also, Director David Jeffrey Richardson sold 7,453 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $54.92, for a total value of $409,318.76. Following the completion of the sale, the director now owns 9,046 shares of the company’s stock, valued at $496,806.32. The disclosure for this sale can be found here. Insiders sold 14,508 shares of company stock valued at $801,404 over the last 90 days. Company insiders own 5.69% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC increased its position in shares of Ambarella by 37.8% during the fourth quarter. Renaissance Technologies LLC now owns 1,084,633 shares of the semiconductor company’s stock worth $65,685,000 after purchasing an additional 297,407 shares in the last quarter. Van Berkom & Associates Inc. increased its position in shares of Ambarella by 2.8% during the first quarter. Van Berkom & Associates Inc. now owns 954,034 shares of the semiconductor company’s stock worth $46,328,000 after purchasing an additional 26,423 shares in the last quarter. State Street Corp increased its position in shares of Ambarella by 2.0% during the first quarter. State Street Corp now owns 950,813 shares of the semiconductor company’s stock worth $46,171,000 after purchasing an additional 18,750 shares in the last quarter. Janus Henderson Group PLC increased its position in shares of Ambarella by 28.0% during the fourth quarter. Janus Henderson Group PLC now owns 933,242 shares of the semiconductor company’s stock worth $56,512,000 after purchasing an additional 204,353 shares in the last quarter. Finally, AXA increased its position in shares of Ambarella by 9.2% during the fourth quarter. AXA now owns 876,500 shares of the semiconductor company’s stock worth $53,081,000 after purchasing an additional 73,572 shares in the last quarter. Hedge funds and other institutional investors own 75.11% of the company’s stock.

About Ambarella

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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