Ambarella (NASDAQ:AMBA) Shares Up 7% – Should You Buy?

Ambarella, Inc. (NASDAQ:AMBA) shares shot up 7% during trading on Friday . The company traded as high as $70.77 and last traded at $69.1520. 520,635 shares were traded during trading, a decline of 62% from the average session volume of 1,355,141 shares. The stock had previously closed at $64.60.

Analysts Set New Price Targets

AMBA has been the subject of several research analyst reports. Consumer Edge restated a “buy” rating on shares of Ambarella in a research note on Friday, November 21st. Bank of America raised their price target on shares of Ambarella from $90.00 to $92.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 26th. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Ambarella in a report on Wednesday, November 26th. Rosenblatt Securities raised their target price on shares of Ambarella from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Wednesday, November 26th. Finally, Roth Capital reaffirmed a “neutral” rating on shares of Ambarella in a report on Wednesday, November 26th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Ambarella currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.00.

Ambarella Trading Up 6.4%

The company has a market cap of $2.96 billion, a price-to-earnings ratio of -36.56 and a beta of 1.95. The business has a fifty day moving average of $76.17 and a two-hundred day moving average of $76.20.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Tuesday, November 25th. The semiconductor company reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.06. Ambarella had a negative return on equity of 13.02% and a negative net margin of 21.31%.The business had revenue of $108.45 million during the quarter, compared to analysts’ expectations of $104.11 million. During the same period in the previous year, the business earned $0.11 earnings per share. The business’s revenue was up 31.2% compared to the same quarter last year. On average, research analysts forecast that Ambarella, Inc. will post -2.81 EPS for the current fiscal year.

Insider Buying and Selling at Ambarella

In other news, CFO John Alexander Young sold 3,791 shares of Ambarella stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $72.96, for a total value of $276,591.36. Following the sale, the chief financial officer directly owned 102,738 shares of the company’s stock, valued at $7,495,764.48. The trade was a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Chi-Hong Ju sold 7,728 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $75.58, for a total value of $584,082.24. Following the sale, the vice president owned 146,039 shares of the company’s stock, valued at $11,037,627.62. The trade was a 5.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 27,685 shares of company stock valued at $2,016,598. 5.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of AMBA. Royal Bank of Canada grew its position in shares of Ambarella by 2.1% in the first quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock valued at $3,258,000 after purchasing an additional 1,307 shares in the last quarter. Advisors Asset Management Inc. boosted its stake in Ambarella by 44.1% during the first quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock worth $47,000 after buying an additional 286 shares during the last quarter. AQR Capital Management LLC boosted its stake in Ambarella by 126.6% during the first quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company’s stock worth $4,272,000 after buying an additional 47,414 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Ambarella by 34.6% during the 1st quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock valued at $344,000 after acquiring an additional 1,758 shares during the last quarter. Finally, Intech Investment Management LLC grew its holdings in shares of Ambarella by 48.1% in the first quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock valued at $1,288,000 after purchasing an additional 8,306 shares during the period. 82.09% of the stock is owned by hedge funds and other institutional investors.

About Ambarella

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.