Zacks Investment Research lowered shares of Ambarella (NASDAQ:AMBA) from a hold rating to a sell rating in a report released on Thursday.
According to Zacks, “Ambarella reported better-than-expected Q4 results. We remain encouraged by the company’s efforts toward expanding its reach in other markets, such as IP security, automotive, non-GoPro wearable and drones/flying cameras and simultaneously lower dependency on GoPro. However, the company’s disappointing revenue guidance for the forthcoming quarter makes us slightly cautious about its near-term prospect. The soft guidance provided by the video compression and image processing semiconductors developer may be due to the number of challenges it has been facing. The company faces three main challenges, reducing revenue contribution from one of its largest customer, weakness in the drone market and increasing threat from QUALCOMM, which is acquiring NXP Semiconductors to build its presence in the same space. Notably, the stock has underperformed the industry in the last one year.”
AMBA has been the subject of several other reports. Needham & Company LLC reissued a hold rating on shares of Ambarella in a report on Friday, December 1st. UBS Group raised shares of Ambarella from a market perform rating to an outperform rating in a report on Wednesday, January 3rd. BidaskClub lowered shares of Ambarella from a hold rating to a sell rating in a report on Thursday, December 7th. Stifel Nicolaus restated a buy rating and issued a $62.00 price target (up from $52.00) on shares of Ambarella in a research report on Wednesday, November 22nd. Finally, Morgan Stanley raised their price target on shares of Ambarella from $60.00 to $65.00 and gave the stock an overweight rating in a research report on Wednesday, December 13th. Two analysts have rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $61.15.
Ambarella (NASDAQ:AMBA) last announced its quarterly earnings data on Thursday, March 1st. The semiconductor company reported $0.45 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.08. The company had revenue of $70.60 million during the quarter, compared to analyst estimates of $70.26 million. Ambarella had a net margin of 6.38% and a return on equity of 4.08%. The firm’s revenue for the quarter was down 19.3% compared to the same quarter last year. During the same period last year, the business earned $0.92 EPS. research analysts anticipate that Ambarella will post 0.22 EPS for the current year.
In related news, insider Leslie Kohn sold 4,614 shares of Ambarella stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $57.69, for a total value of $266,181.66. Following the sale, the insider now directly owns 906,766 shares in the company, valued at approximately $52,311,330.54. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Yun-Lung Chen sold 4,435 shares of Ambarella stock in a transaction dated Friday, December 29th. The shares were sold at an average price of $59.80, for a total transaction of $265,213.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 36,553 shares of company stock worth $2,145,108. Insiders own 5.80% of the company’s stock.
A number of large investors have recently modified their holdings of AMBA. Parametric Portfolio Associates LLC lifted its position in Ambarella by 35.8% in the 2nd quarter. Parametric Portfolio Associates LLC now owns 12,707 shares of the semiconductor company’s stock valued at $617,000 after purchasing an additional 3,347 shares during the last quarter. State Street Corp lifted its position in Ambarella by 5.9% in the 2nd quarter. State Street Corp now owns 595,044 shares of the semiconductor company’s stock valued at $28,894,000 after purchasing an additional 33,237 shares during the last quarter. The Manufacturers Life Insurance Company lifted its position in Ambarella by 1.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 24,951 shares of the semiconductor company’s stock valued at $1,212,000 after purchasing an additional 376 shares during the last quarter. Raymond James Financial Services Advisors Inc. lifted its position in Ambarella by 17.6% in the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 4,908 shares of the semiconductor company’s stock valued at $238,000 after purchasing an additional 734 shares during the last quarter. Finally, Aperio Group LLC bought a new stake in Ambarella in the 3rd quarter valued at about $213,000. Hedge funds and other institutional investors own 69.87% of the company’s stock.
Ambarella Company Profile
Ambarella, Inc offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip.
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