Ambarella (NASDAQ:AMBA) Stock Rating Lowered by Summit Insights

Ambarella (NASDAQ:AMBA) was downgraded by investment analysts at Summit Insights from a “buy” rating to a “hold” rating in a report issued on Friday.

A number of other research analysts have also weighed in on AMBA. Stifel Nicolaus set a $106.00 target price on shares of Ambarella in a research note on Friday. Consumer Edge reissued a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 target price on shares of Ambarella in a research note on Tuesday. Finally, Bank of America reissued a “neutral” rating on shares of Ambarella in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $96.75.

Ambarella Stock Up 1.4%

Shares of Ambarella stock opened at $91.84 on Friday. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69. The business has a 50-day moving average price of $65.50 and a 200 day moving average price of $68.42. The firm has a market cap of $4.03 billion, a PE ratio of -51.60 and a beta of 2.17.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings results on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share for the quarter, meeting the consensus estimate of $0.11. The firm had revenue of $100.36 million during the quarter, compared to analyst estimates of $100.12 million. Ambarella had a negative return on equity of 12.16% and a negative net margin of 19.42%.Ambarella’s revenue for the quarter was up 16.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 EPS. On average, sell-side analysts expect that Ambarella will post -1.27 EPS for the current year.

Insider Buying and Selling at Ambarella

In other news, insider Chan W. Lee sold 6,729 shares of Ambarella stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total transaction of $355,089.33. Following the completion of the sale, the insider directly owned 156,370 shares of the company’s stock, valued at approximately $8,251,644.90. The trade was a 4.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Chi-Hong Ju sold 4,729 shares of Ambarella stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $249,549.33. Following the sale, the vice president directly owned 164,166 shares of the company’s stock, valued at approximately $8,663,039.82. This trade represents a 2.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 136,799 shares of company stock worth $8,917,902. 4.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ambarella

Institutional investors and hedge funds have recently bought and sold shares of the stock. Essential Partners LLC increased its stake in Ambarella by 90.1% in the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 228 shares during the period. EverSource Wealth Advisors LLC increased its stake in Ambarella by 362.2% in the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 326 shares during the period. Cassaday & Co Wealth Management LLC acquired a new position in Ambarella in the first quarter valued at $30,000. Advisory Services Network LLC acquired a new position in Ambarella in the third quarter valued at $33,000. Finally, Steward Partners Investment Advisory LLC increased its stake in Ambarella by 162.5% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock valued at $37,000 after purchasing an additional 325 shares during the period. 82.09% of the stock is owned by hedge funds and other institutional investors.

Key Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q1 revenue of $100.4 million, up 16.9% year over year, with EPS of $0.11 matching estimates and revenue slightly topping expectations, suggesting execution remains on track. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Positive Sentiment: The company also guided Q2 revenue to $105 million-$111 million, which was above the consensus view at the midpoint, helping support the stock’s move. Ambarella outlines $105M-$111M Q2 revenue while Hanwha agreement targets $800M+ over 10+ years
• Positive Sentiment: Ambarella announced a long-term edge-AI agreement with Hanwha that could generate more than $800 million in potential revenue over 10+ years, a meaningful validation of its platform and future demand outlook. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: Analysts turned more constructive after the report, with Needham’s Quinn Bolton reiterating Buy and raising his target to $100, while Bank of America’s Vivek Arya lifted his target to $96, both pointing to longer-dated edge-AI upside. Quinn Bolton Reiterates Buy on Ambarella, Sets $100 DCF-Based Price Target on Strengthening Auto, Robotics, and Long-Term Deal Momentum
• Neutral Sentiment: Ambarella’s CEO and CFO disclosed pre-arranged stock sales under 10b5-1 plans, which investors may view as routine rather than a major signal. MarketBeat AMBA insider transactions

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.