Stifel Nicolaus Cuts Ambarella (NASDAQ:AMBA) Price Target to $90.00

Ambarella (NASDAQ:AMBA) had its target price trimmed by Stifel Nicolaus from $106.00 to $90.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a buy rating on the semiconductor company’s stock.

Several other research analysts have also recently issued reports on the stock. Oppenheimer reissued a “market perform” rating on shares of Ambarella in a report on Friday. Weiss Ratings raised Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. Northland Securities set a $101.00 price target on Ambarella in a research report on Wednesday, June 17th. Rosenblatt Securities reiterated a “buy” rating and set a $120.00 price objective on shares of Ambarella in a research note on Monday, August 31st. Finally, Needham & Company LLC reissued a “buy” rating on shares of Ambarella in a report on Friday. Five equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Ambarella presently has a consensus rating of “Hold” and a consensus target price of $89.56.

Ambarella Stock Performance

Shares of NASDAQ:AMBA opened at $62.89 on Friday. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69. The company has a market cap of $2.76 billion, a PE ratio of -48.75 and a beta of 2.09. The company’s 50 day moving average is $74.33 and its 200 day moving average is $68.21.

Ambarella (NASDAQ:AMBA) last announced its quarterly earnings data on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.17 by $0.01. The business had revenue of $108.12 million during the quarter, compared to analysts’ expectations of $107.76 million. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.12%. The business’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.15 EPS. Equities research analysts predict that Ambarella will post -1.13 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO John Young sold 5,033 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the sale, the chief financial officer directly owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 10,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the sale, the vice president owned 155,924 shares in the company, valued at approximately $13,852,288.16. This represents a 6.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 58,519 shares of company stock worth $4,595,475. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ambarella

Several hedge funds have recently modified their holdings of the company. Royal Bank of Canada increased its stake in shares of Ambarella by 2.1% in the 1st quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock valued at $3,258,000 after purchasing an additional 1,307 shares in the last quarter. Advisors Asset Management Inc. boosted its position in Ambarella by 44.1% during the first quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 286 shares in the last quarter. AQR Capital Management LLC boosted its position in 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 in the last quarter. Empowered Funds LLC grew its holdings in Ambarella by 34.6% in the first quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock valued at $344,000 after purchasing an additional 1,758 shares during the period. Finally, Intech Investment Management LLC grew its holdings in Ambarella by 48.1% in the first quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock valued at $1,288,000 after purchasing an additional 8,306 shares during the period. 82.09% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Ambarella

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 and slightly above estimates, while non-GAAP EPS of $0.18 exceeded consensus. The company also forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with expectations. Ambarella fiscal Q2 results
• Positive Sentiment: Management highlighted record edge-AI revenue and announced long-term agreements with Macnica and Capgemini. The partnerships could expand distribution, systems integration, and enterprise adoption of Ambarella’s edge and physical AI products. Macnica strategic agreement
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and sees substantial potential appreciation despite reducing its price target from $106 to $90. Stifel price target update

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.