Ambarella (NASDAQ:AMBA) Stock Price Down 8.9% – Here’s What Happened

Shares of Ambarella, Inc. (NASDAQ:AMBA) were down 8.9% 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 Analysts Forecast Growth

Several brokerages have recently issued reports on AMBA. Northland Securities set a $101.00 target price on shares of Ambarella in a report on Wednesday, June 17th. Bank of America lifted their price target on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Rosenblatt Securities boosted their price target on shares of Ambarella from $115.00 to $120.00 in a research report on Tuesday, June 30th. Susquehanna upped their price objective on shares of Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, May 29th. Finally, Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. One 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Ambarella presently has a consensus rating of “Moderate Buy” and an average target price of $101.12.

Ambarella Price Performance

The stock has a 50 day simple moving average of $74.36 and a two-hundred day simple moving average of $66.55. The company has a market cap of $3.19 billion, a PE ratio of -45.42 and a beta of 2.11.

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

Insider Activity

In other Ambarella news, insider Chan W. Lee sold 2,951 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $200,284.37. Following the transaction, the insider directly owned 157,098 shares of the company’s stock, valued at approximately $10,662,241.26. This trade represents a 1.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Yun-Lung Chen sold 9,856 shares of Ambarella stock in a transaction on Friday, June 12th. The shares were sold at an average price of $67.06, for a total transaction of $660,943.36. Following the completion of the transaction, the vice president owned 66,515 shares in the company, valued at approximately $4,460,495.90. This represents a 12.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 87,432 shares of company stock worth $7,241,303 over the last 90 days. 4.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ambarella

Institutional investors have recently added to or reduced their stakes in the stock. CoreCap Advisors LLC purchased a new stake in Ambarella during the 2nd quarter valued at approximately $139,000. Western Wealth Management LLC acquired a new stake in Ambarella during the 1st quarter worth approximately $129,000. Pacer Advisors Inc. grew its stake in shares of Ambarella by 26.7% in the 1st quarter. Pacer Advisors Inc. now owns 5,360 shares of the semiconductor company’s stock valued at $276,000 after purchasing an additional 1,129 shares during the last quarter. Essential Partners LLC grew its stake 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 during the last quarter. Finally, Cim Investment Management Inc. increased its holdings in shares of Ambarella by 43.2% in the first quarter. Cim Investment Management Inc. now owns 5,998 shares of the semiconductor company’s stock valued at $309,000 after purchasing an additional 1,810 shares during the period. Institutional investors and hedge funds 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.