Ambarella (NASDAQ:AMBA) Reaches New 12-Month High – Time to Buy?

Ambarella, Inc. (NASDAQ:AMBA) shares hit a new 52-week high during trading on Monday . The company traded as high as $66.45 and last traded at $66.41, with a volume of 31953 shares traded. The stock had previously closed at $63.62.

Analyst Ratings Changes

Several brokerages have recently issued reports on AMBA. Westpark Capital reissued a “buy” rating and set a $85.00 price target on shares of Ambarella in a report on Monday, August 26th. Craig Hallum raised their price target on shares of Ambarella from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Wednesday, August 28th. Bank of America boosted their price objective on Ambarella from $50.00 to $57.00 and gave the stock an “underperform” rating in a research report on Wednesday, August 28th. Roth Mkm restated a “neutral” rating and issued a $60.00 target price on shares of Ambarella in a research report on Wednesday, August 28th. Finally, Susquehanna reduced their price target on Ambarella from $80.00 to $70.00 and set a “positive” rating for the company in a research report on Monday, October 21st. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, Ambarella presently has an average rating of “Hold” and a consensus price target of $74.09.

Ambarella Stock Up 5.3 %

The firm’s 50-day simple moving average is $57.67 and its 200 day simple moving average is $54.58. The stock has a market capitalization of $2.77 billion, a P/E ratio of -15.04 and a beta of 1.63.

Ambarella (NASDAQ:AMBA) last released its earnings results on Tuesday, August 27th. The semiconductor company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.19) by $0.06. The business had revenue of $63.70 million during the quarter, compared to analyst estimates of $62.10 million. Ambarella had a negative net margin of 79.46% and a negative return on equity of 26.01%. The business’s quarterly revenue was up 2.6% on a year-over-year basis. During the same period in the prior year, the business earned ($0.76) earnings per share. As a group, equities analysts anticipate that Ambarella, Inc. will post -3 EPS for the current fiscal year.

Insider Activity

In other news, CEO Feng-Ming Wang sold 4,382 shares of the firm’s stock in a transaction on Wednesday, September 4th. The stock was sold at an average price of $56.02, for a total value of $245,479.64. Following the completion of the sale, the chief executive officer now owns 803,574 shares of the company’s stock, valued at $45,016,215.48. This trade represents a 0.54 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Yun-Lung Chen sold 5,963 shares of the company’s stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $57.56, for a total value of $343,230.28. Following the transaction, the vice president now directly owns 62,026 shares in the company, valued at $3,570,216.56. The trade was a 8.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 24,423 shares of company stock valued at $1,356,402 over the last three months. Insiders own 5.70% of the company’s stock.

Hedge Funds Weigh In On Ambarella

Large investors have recently made changes to their positions in the business. SWS Partners grew its stake in Ambarella by 25.3% in the second quarter. SWS Partners now owns 79,522 shares of the semiconductor company’s stock valued at $4,290,000 after purchasing an additional 16,049 shares in the last quarter. Millennium Management LLC grew its stake in shares of Ambarella by 7.0% in the 2nd quarter. Millennium Management LLC now owns 1,447,466 shares of the semiconductor company’s stock valued at $78,091,000 after buying an additional 94,257 shares in the last quarter. Sei Investments Co. acquired a new position in Ambarella in the first quarter worth approximately $571,000. Connor Clark & Lunn Investment Management Ltd. raised its position in Ambarella by 18.9% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 226,502 shares of the semiconductor company’s stock valued at $12,776,000 after acquiring an additional 35,977 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in Ambarella in the second quarter valued at approximately $841,000. Institutional investors and hedge funds own 82.09% of the company’s stock.

Ambarella Company Profile

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.