Ambarella (NASDAQ:AMBA) Stock Price Up 17.9% – Should You Buy?

Ambarella, Inc. (NASDAQ:AMBA) shares traded up 17.9% during mid-day trading on Friday . The company traded as high as $78.24 and last traded at $87.3550. 887,582 shares changed hands during trading, a decline of 28% from the average daily volume of 1,228,830 shares. The stock had previously closed at $74.09.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on AMBA. Summit Insights cut shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Bank of America raised their target price on shares of Ambarella from $72.00 to $96.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Susquehanna lifted their target price on shares of Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a report on Friday, May 29th. Northland Securities set a $101.00 price target on shares of Ambarella in a research report on Wednesday, June 17th. Finally, Weiss Ratings upgraded Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $101.12.

Ambarella Price Performance

The company has a market cap of $3.83 billion, a price-to-earnings ratio of -54.54 and a beta of 2.11. The company’s 50-day simple moving average is $72.59 and its 200-day simple moving average is $66.33.

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

Insider Buying and Selling

In related news, insider Chan W. Lee sold 2,951 shares of the business’s 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 transaction, the insider owned 157,098 shares in the company, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Chi-Hong Ju sold 10,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total value of $888,400.00. Following the completion of the transaction, the vice president directly owned 155,924 shares of the company’s stock, 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 91,419 shares of company stock worth $7,591,700 over the last quarter. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Ambarella

Institutional investors have recently made changes to their positions in the business. Royal Bank of Canada raised its holdings in Ambarella by 2.1% in the first quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock valued at $3,258,000 after acquiring an additional 1,307 shares in the last quarter. Advisors Asset Management Inc. raised its stake in shares of Ambarella by 44.1% in the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock valued at $47,000 after purchasing an additional 286 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Ambarella by 126.6% during the first quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company’s stock worth $4,272,000 after purchasing an additional 47,414 shares during the last quarter. Empowered Funds LLC grew its stake in Ambarella by 34.6% in the first quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock worth $344,000 after purchasing an additional 1,758 shares in the last quarter. Finally, Intech Investment Management LLC grew its stake in Ambarella by 48.1% in the first quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock worth $1,288,000 after purchasing an additional 8,306 shares in the last quarter. 82.09% of the stock is owned by institutional investors and hedge funds.

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.