Bank of America Issues Pessimistic Forecast for Ambarella (NASDAQ:AMBA) Stock Price

Ambarella (NASDAQ:AMBA) had its target price dropped by stock analysts at Bank of America from $96.00 to $70.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a “neutral” rating on the semiconductor company’s stock. Bank of America‘s target price points to a potential upside of 12.61% from the stock’s current price.

Other equities analysts have also recently issued reports about the stock. Rosenblatt Securities restated a “buy” rating and issued a $120.00 target price on shares of Ambarella in a research report on Monday. Needham & Company LLC reissued a “buy” rating on shares of Ambarella in a research note on Friday. Roth Capital set a $65.00 price objective on shares of Ambarella in a research report on Friday. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Finally, Summit Insights downgraded Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $91.33.

Ambarella Stock Performance

Shares of AMBA stock traded down $1.22 on Friday, hitting $62.16. The company’s stock had a trading volume of 1,978,332 shares, compared to its average volume of 1,274,206. Ambarella has a fifty-two week low of $48.30 and a fifty-two week high of $96.69. The company has a market capitalization of $2.73 billion, a PE ratio of -38.40 and a beta of 2.09. The stock’s 50 day moving average is $74.31 and its 200-day moving average is $68.23.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The firm had revenue of $108.12 million during the quarter, compared to the consensus estimate of $107.76 million. During the same quarter in the previous year, the firm posted $0.15 EPS. The business’s revenue for the quarter was up 13.2% compared to the same quarter last year. On average, research analysts forecast that Ambarella will post -1.13 earnings per share for the current year.

Insider Activity at Ambarella

In other news, insider Chan Lee sold 2,951 shares of Ambarella stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the sale, the insider owned 157,098 shares in the company, valued at $10,662,241.26. The trade was a 1.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Yun-Lung Chen sold 5,958 shares of the business’s stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $78.66, for a total transaction of $468,656.28. Following the transaction, the vice president owned 60,557 shares in the company, valued at $4,763,413.62. The trade was a 8.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 58,519 shares of company stock worth $4,595,475. Corporate insiders own 4.50% of the company’s stock.

Institutional Trading of Ambarella

Large investors have recently made changes to their positions in the company. Financial Management Professionals Inc. acquired a new position in Ambarella during the 2nd quarter worth approximately $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Ambarella during the second quarter valued at approximately $34,000. Advisory Services Network LLC bought a new stake in shares of Ambarella during the third quarter valued at approximately $33,000. EverSource Wealth Advisors LLC raised its position in shares of Ambarella by 362.2% during the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 326 shares during the period. Finally, Essential Partners LLC raised its position in shares of Ambarella by 90.1% during the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 228 shares during the period. 82.09% of the stock is currently owned by institutional investors and hedge funds.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year, narrowly exceeding the $107.8 million consensus estimate. Non-GAAP EPS of $0.18 also topped expectations and increased from $0.15 a year earlier. Ambarella fiscal Q2 financial results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with the approximately $119.3 million analyst estimate, supporting expectations for continued edge-AI growth. Ambarella Q3 revenue guidance
• Positive Sentiment: Long-term agreements with Macnica and Capgemini could expand Ambarella’s distribution, engineering and systems-integration reach for edge and physical AI applications, although the revenue impact is not yet quantified. Ambarella and Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya maintained a Hold rating, citing elevated valuation and near-term margin uncertainty, while retaining a $96 price objective. Ambarella valuation and margin analysis
• Negative Sentiment: Craig Hallum downgraded Ambarella from Buy to Hold and set a $70 price target. The downgrade signals reduced conviction in the near-term upside following the earnings release. Craig Hallum downgrade
• Negative Sentiment: GAAP results remained unprofitable, with a $6.7 million net loss, while GAAP gross margin declined to 57.7% from 58.9% a year earlier. Management also expects fiscal Q3 non-GAAP gross margin of 59% to 60%, indicating continued margin pressure.
• Negative Sentiment: Reported insider activity remains a cautionary signal: company insiders recorded 23 open-market sales and no purchases over the past six months.

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.