Ambarella (NASDAQ:AMBA) Reaches New 52-Week High – Still a Buy?

Shares of Ambarella, Inc. (NASDAQ:AMBA) reached a new 52-week high during trading on Thursday . The company traded as high as $94.65 and last traded at $91.6360, with a volume of 920150 shares trading hands. The stock had previously closed at $86.50.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on AMBA shares. Summit Insights upgraded Ambarella from a “hold” rating to a “buy” rating in a research report on Friday, August 29th. Susquehanna boosted their price target on Ambarella from $80.00 to $90.00 and gave the stock a “positive” rating in a report on Tuesday, July 22nd. Rosenblatt Securities boosted their price target on Ambarella from $95.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, August 29th. BNP Paribas upgraded Ambarella to a “strong-buy” rating in a report on Friday, August 29th. Finally, Oppenheimer restated a “market perform” rating on shares of Ambarella in a report on Friday, August 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Ambarella has an average rating of “Moderate Buy” and an average target price of $93.88.

Ambarella Price Performance

The firm has a market capitalization of $3.91 billion, a P/E ratio of -43.28 and a beta of 2.14. The company has a fifty day moving average of $82.96 and a 200 day moving average of $68.47.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings results on Thursday, August 28th. The semiconductor company reported $0.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.10. The firm had revenue of $95.51 million for the quarter, compared to analysts’ expectations of $90.01 million. Ambarella had a negative return on equity of 14.73% and a negative net margin of 25.46%.The company’s revenue for the quarter was up 49.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.13) EPS. Ambarella has set its Q3 2026 guidance at EPS. On average, sell-side analysts forecast that Ambarella, Inc. will post -2.81 EPS for the current year.

Insider Activity

In related news, VP Yun-Lung Chen sold 8,492 shares of the stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $84.42, for a total value of $716,894.64. Following the transaction, the vice president directly owned 61,651 shares in the company, valued at $5,204,577.42. This trade represents a 12.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO John Alexander Young sold 2,566 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total value of $203,817.38. Following the completion of the transaction, the chief financial officer owned 109,108 shares in the company, valued at approximately $8,666,448.44. This represents a 2.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 35,227 shares of company stock worth $2,875,131. Company insiders own 5.70% of the company’s stock.

Hedge Funds Weigh In On Ambarella

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Ambarella by 3.2% in the 1st quarter. Vanguard Group Inc. now owns 4,848,305 shares of the semiconductor company’s stock worth $244,015,000 after purchasing an additional 152,181 shares in the last quarter. State Street Corp increased its position in shares of Ambarella by 8.9% during the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company’s stock valued at $122,562,000 after purchasing an additional 151,694 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in shares of Ambarella by 4.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company’s stock valued at $90,609,000 after purchasing an additional 52,954 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Ambarella by 88.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,232,272 shares of the semiconductor company’s stock valued at $62,020,000 after purchasing an additional 579,917 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Ambarella by 3.0% during the 2nd quarter. Geode Capital Management LLC now owns 976,281 shares of the semiconductor company’s stock valued at $64,505,000 after purchasing an additional 28,371 shares during the last quarter. 82.09% of the stock is currently owned by institutional investors.

Ambarella Company Profile

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.