Ambarella, Inc. (NASDAQ:AMBA) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Ambarella, Inc. (NASDAQ:AMBA) have been assigned a consensus rating of “Moderate Buy” from the fourteen brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, seven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $99.75.

AMBA has been the topic of a number of research reports. Susquehanna boosted their target price on shares of Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research report on Friday. Rosenblatt Securities reaffirmed a “buy” rating and set a $115.00 target price on shares of Ambarella in a research report on Tuesday, May 26th. Bank of America boosted their target price on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday. Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a research report on Friday, May 22nd. Finally, Summit Insights lowered shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Friday.

Ambarella Trading Down 21.4%

Shares of AMBA stock opened at $72.18 on Friday. Ambarella has a 1 year low of $48.30 and a 1 year high of $96.69. The firm’s fifty day simple moving average is $65.86 and its 200 day simple moving average is $68.45. The firm has a market capitalization of $3.17 billion, a P/E ratio of -44.83 and a beta of 2.17.

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. Ambarella had a negative net margin of 17.18% and a negative return on equity of 11.02%. The business had revenue of $100.36 million for the quarter, compared to analyst estimates of $100.12 million. During the same quarter in the previous year, the firm posted $0.07 earnings per share. Ambarella’s revenue was up 16.9% compared to the same quarter last year. Equities research analysts anticipate that Ambarella will post -1.27 EPS for the current fiscal year.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q1 revenue rose 16.9% year over year to $100.4 million and EPS matched expectations, showing solid execution. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Positive Sentiment: The Hanwha edge-AI partnership could bring over $800 million in potential revenue over time, strengthening Ambarella’s long-term growth case. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: Analysts such as Needham and Bank of America raised price targets, signaling continued optimism about Ambarella’s edge-AI and automotive opportunity. Quinn Bolton Reiterates Buy on Ambarella, Sets $100 DCF-Based Price Target on Strengthening Auto, Robotics, and Long-Term Deal Momentum
• Neutral Sentiment: Management announced a $50 million buyback, but investors seem focused more on the near-term outlook than capital return. Ambarella, Inc. Announces First Quarter Fiscal Year 2027 Financial Results
• Negative Sentiment: Second-quarter revenue guidance came in cautious, and supply-chain cost pressures raised concerns about demand and margins later in the year. Ambarella Stock Slides After Lackluster Q1 Results
• Negative Sentiment: Summit Insights downgraded Ambarella to Hold, which reinforced the post-earnings selloff. Summit Insights downgrade on Ambarella

Insider Buying and Selling at Ambarella

In other Ambarella news, CEO Feng-Ming Wang sold 32,500 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $91.01, for a total value of $2,957,825.00. Following the sale, the chief executive officer owned 806,061 shares of the company’s stock, valued at $73,359,611.61. The trade was a 3.88% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 2,155 shares of the business’s stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $54.14, for a total transaction of $116,671.70. Following the completion of the sale, the vice president directly owned 167,941 shares in the company, valued at $9,092,325.74. This trade represents a 1.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 136,799 shares of company stock worth $8,917,902. Corporate insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in Ambarella by 6.0% in the 4th quarter. Vanguard Group Inc. now owns 5,480,285 shares of the semiconductor company’s stock valued at $388,223,000 after buying an additional 311,649 shares during the period. State Street Corp increased its holdings in Ambarella by 8.9% in the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company’s stock valued at $122,562,000 after buying an additional 151,694 shares during the period. Jericho Capital Asset Management L.P. increased its holdings in Ambarella by 30.8% in the 4th quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company’s stock valued at $112,429,000 after buying an additional 373,734 shares during the period. The Manufacturers Life Insurance Company increased its holdings in Ambarella by 49.5% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company’s stock valued at $81,644,000 after buying an additional 524,937 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Ambarella by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company’s stock valued at $72,305,000 after buying an additional 35,510 shares during the period. Institutional investors 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.