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

Ambarella, Inc. (NASDAQ:AMBA)’s share price hit a new 52-week high during mid-day trading on Thursday . The stock 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.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Rosenblatt Securities raised their target price on Ambarella from $95.00 to $100.00 and gave the company a “buy” rating in a research report on Friday, August 29th. Susquehanna lifted their price objective on Ambarella from $80.00 to $90.00 and gave the stock a “positive” rating in a report on Tuesday, July 22nd. Needham & Company LLC lifted their price objective on Ambarella from $90.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, August 29th. Roth Capital reissued a “neutral” rating on shares of Ambarella in a report on Friday, August 29th. Finally, Bank of America lifted their price objective on Ambarella from $63.00 to $90.00 and gave the stock a “neutral” rating in a report on Friday, August 29th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.88.

Ambarella Stock Performance

The firm has a 50 day simple moving average of $82.96 and a 200 day simple moving average of $68.47. The firm has a market cap of $3.91 billion, a P/E ratio of -43.28 and a beta of 2.14.

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

Insiders Place Their Bets

In other news, Director Elizabeth M. Schwarting sold 2,664 shares of Ambarella stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $85.38, for a total transaction of $227,452.32. Following the completion of the sale, the director owned 7,314 shares in the company, valued at approximately $624,469.32. This trade represents a 26.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Yun-Lung Chen sold 8,492 shares of Ambarella stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $84.42, for a total value of $716,894.64. Following the sale, the vice president owned 61,651 shares of the company’s stock, valued at approximately $5,204,577.42. This trade represents a 12.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 35,227 shares of company stock worth $2,875,131 over the last quarter. Insiders own 5.70% of the company’s stock.

Institutional Trading of Ambarella

A number of large investors have recently modified their holdings of the business. Caprock Group LLC bought a new stake in shares of Ambarella during the 3rd quarter valued at about $287,000. Essex Investment Management Co. LLC boosted its position in shares of Ambarella by 1.0% during the 3rd quarter. Essex Investment Management Co. LLC now owns 85,352 shares of the semiconductor company’s stock valued at $7,043,000 after acquiring an additional 873 shares during the last quarter. Western Wealth Management LLC bought a new stake in shares of Ambarella during the 3rd quarter valued at about $206,000. Principal Financial Group Inc. bought a new stake in shares of Ambarella during the 3rd quarter valued at about $257,000. Finally, Arizona State Retirement System boosted its position in shares of Ambarella by 1.3% during the 3rd quarter. Arizona State Retirement System now owns 11,899 shares of the semiconductor company’s stock valued at $982,000 after acquiring an additional 157 shares during the last quarter. Institutional investors own 82.09% of the company’s stock.

About Ambarella

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.