Ambarella (NASDAQ:AMBA) Sees Large Volume Increase – Time to Buy?

Ambarella, Inc. (NASDAQ:AMBA) shares saw an uptick in trading volume on Wednesday . Approximately 1,046,440 shares were traded during trading, a decline of 8% from the previous session’s volume of 1,131,957 shares.The stock last traded at $89.5930 and had previously closed at $85.80.

Key Stories Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q1 2027 revenue of $100.4 million, up 16.9% year over year, with non-GAAP net profit of $5.0 million and record automotive sales, signaling improving demand for its AI-focused chips.
• Positive Sentiment: Rosenblatt named Ambarella a top pick for the second half of 2026 and highlighted it as a “physical AI” pure play, adding to bullish sentiment around the stock.
• Positive Sentiment: Management also guided for higher revenue next quarter, which supports expectations that momentum in its core end markets could continue.
• Neutral Sentiment: Ambarella shareholders recently re-elected directors, approved the auditor, and affirmed the equity plan at the annual meeting, a routine governance update with limited direct trading impact.
• Neutral Sentiment: The stock’s recent surge has made valuation look mixed, with some reports saying it appears fairly valued on a DCF basis but expensive on sales multiples after a sharp run-up.
• Negative Sentiment: Recent insider selling by CEO Feng-Ming Wang, VP Chi-Hong Ju, and director Christopher Paisley may weigh on sentiment, even though the sales were disclosed as part of pre-arranged trading plans.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AMBA shares. Bank of America lifted their price target on shares of Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Northland Securities set a $101.00 price objective on Ambarella in a research note on Wednesday, June 17th. Summit Insights cut Ambarella from a “buy” rating to a “hold” rating in a report on Friday, May 29th. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Ambarella in a research report on Tuesday, May 26th. Finally, Stifel Nicolaus set a $106.00 target price on Ambarella in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Ambarella has an average rating of “Moderate Buy” and a consensus price target of $100.50.

Ambarella Stock Down 11.3%

The business’s 50 day moving average is $73.66 and its 200-day moving average is $66.46. The firm has a market capitalization of $3.44 billion, a P/E ratio of -48.67 and a beta of 2.11.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11. The company had revenue of $100.36 million during the quarter, compared to analysts’ expectations of $100.12 million. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.Ambarella’s revenue was up 16.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 EPS. Research analysts forecast that Ambarella, Inc. will post -1.13 EPS for the current fiscal year.

Insider Activity at Ambarella

In related news, CFO John Alexander Young sold 5,033 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the completion of the transaction, the chief financial officer directly owned 112,590 shares in the company, valued at $7,604,328.60. This represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of the sale, the vice president owned 155,924 shares in the company, valued at $13,852,288.16. This represents a 6.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 87,432 shares of company stock worth $7,241,303 in the last ninety days. Insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Main Management ETF Advisors LLC increased its position in Ambarella by 1.0% during the 4th quarter. Main Management ETF Advisors LLC now owns 17,226 shares of the semiconductor company’s stock valued at $1,220,000 after purchasing an additional 176 shares during the period. National Bank of Canada FI lifted its position in shares of Ambarella by 18.9% in the 3rd quarter. National Bank of Canada FI now owns 1,146 shares of the semiconductor company’s stock worth $95,000 after purchasing an additional 182 shares during the period. Pallas Capital Advisors LLC boosted its stake in shares of Ambarella by 6.5% in the 4th quarter. Pallas Capital Advisors LLC now owns 3,109 shares of the semiconductor company’s stock valued at $220,000 after purchasing an additional 190 shares during the last quarter. Natixis Advisors LLC boosted its stake in shares of Ambarella by 1.5% in the 3rd quarter. Natixis Advisors LLC now owns 13,721 shares of the semiconductor company’s stock valued at $1,132,000 after purchasing an additional 204 shares during the last quarter. Finally, Mariner LLC increased its position in shares of Ambarella by 2.6% during the third quarter. Mariner LLC now owns 8,574 shares of the semiconductor company’s stock worth $707,000 after buying an additional 219 shares during the period. Institutional investors own 82.09% of the company’s stock.

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.