Ambarella (NASDAQ:AMBA) Trading Down 8.9% – Should You Sell?

Ambarella, Inc. (NASDAQ:AMBA)’s stock price traded down 8.9% during trading on Tuesday . The company traded as low as $73.32 and last traded at $72.6290. Approximately 251,093 shares traded hands during trading, a decline of 78% from the average session volume of 1,164,541 shares. The stock had previously closed at $79.73.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on AMBA shares. Bank of America lifted their price objective on Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Weiss Ratings reissued a “sell (e+)” rating on shares of Ambarella in a research note on Friday, June 26th. Rosenblatt Securities raised their target price on Ambarella from $115.00 to $120.00 in a report on Tuesday, June 30th. Northland Securities set a $101.00 target price on Ambarella in a report on Wednesday, June 17th. Finally, Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $101.12.

Ambarella Trading Down 8.8%

The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of -45.42 and a beta of 2.11. The stock’s fifty day simple moving average is $74.36 and its 200-day simple moving average is $66.55.

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

Insider Activity

In other news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the transaction, the insider owned 157,098 shares in the company, valued at approximately $10,662,241.26. This trade represents a 1.84% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Feng-Ming Wang sold 32,500 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $91.01, for a total value of $2,957,825.00. Following the transaction, the chief executive officer directly owned 806,061 shares of the company’s stock, valued at approximately $73,359,611.61. This represents a 3.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 87,432 shares of company stock worth $7,241,303 over the last three months. Company insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AMBA. Essential Partners LLC raised its holdings in shares of Ambarella by 90.1% in the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 228 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after buying an additional 326 shares during the last quarter. Cassaday & Co Wealth Management LLC acquired a new position in shares of Ambarella during the 1st quarter worth about $30,000. Advisory Services Network LLC acquired a new position in shares of Ambarella during the 3rd quarter worth about $33,000. Finally, Steward Partners Investment Advisory LLC raised its position in shares of Ambarella by 162.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock worth $37,000 after acquiring an additional 325 shares in the last quarter. Hedge funds and other 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.