Ambarella (NASDAQ:AMBA) Reaches New 12-Month Low After Analyst Downgrade

Ambarella, Inc. (NASDAQ:AMBA)’s stock price hit a new 52-week low on Wednesday after Bank of America lowered their price target on the stock from $62.00 to $50.00. Bank of America currently has an underperform rating on the stock. Ambarella traded as low as $43.23 and last traded at $43.66, with a volume of 494610 shares changing hands. The stock had previously closed at $44.49.

Other equities analysts also recently issued reports about the company. Wells Fargo & Company downgraded Ambarella from an “overweight” rating to an “equal weight” rating and reduced their price target for the company from $85.00 to $65.00 in a report on Wednesday, January 3rd. Morgan Stanley lifted their price objective on Ambarella from $67.00 to $73.00 and gave the stock an “overweight” rating in a report on Wednesday, February 28th. Susquehanna lifted their price objective on Ambarella from $70.00 to $80.00 and gave the stock a “positive” rating in a report on Wednesday, February 28th. StockNews.com upgraded Ambarella to a “sell” rating in a report on Saturday, April 13th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $90.00 price objective on shares of Ambarella in a report on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $71.08.

Insiders Place Their Bets

In other Ambarella news, COO Chan W. Lee sold 1,075 shares of the firm’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $49.27, for a total value of $52,965.25. Following the transaction, the chief operating officer now directly owns 124,146 shares of the company’s stock, valued at $6,116,673.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Ambarella news, COO Chan W. Lee sold 1,075 shares of the firm’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $49.27, for a total value of $52,965.25. Following the transaction, the chief operating officer now directly owns 124,146 shares of the company’s stock, valued at $6,116,673.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Leslie Kohn sold 1,198 shares of Ambarella stock in a transaction dated Monday, March 18th. The shares were sold at an average price of $49.27, for a total value of $59,025.46. Following the transaction, the chief technology officer now directly owns 964,664 shares in the company, valued at $47,528,995.28. The disclosure for this sale can be found here. Over the last three months, insiders have sold 6,648 shares of company stock valued at $327,595. Insiders own 5.90% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. LM Advisors LLC purchased a new position in shares of Ambarella during the 4th quarter valued at about $25,000. Creative Planning purchased a new position in shares of Ambarella during the 3rd quarter valued at about $27,000. Stephens Inc. AR lifted its holdings in Ambarella by 73.0% in the 1st quarter. Stephens Inc. AR now owns 1,095 shares of the semiconductor company’s stock worth $85,000 after purchasing an additional 462 shares in the last quarter. Acadian Asset Management LLC purchased a new position in Ambarella in the 3rd quarter worth approximately $66,000. Finally, DekaBank Deutsche Girozentrale purchased a new position in Ambarella in the 4th quarter worth approximately $78,000. 82.09% of the stock is owned by hedge funds and other institutional investors.

Ambarella Stock Performance

The stock has a fifty day moving average of $52.33 and a 200 day moving average of $54.09. The company has a market capitalization of $1.79 billion, a PE ratio of -10.30 and a beta of 1.66.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings results on Tuesday, February 27th. The semiconductor company reported ($0.95) EPS for the quarter, topping analysts’ consensus estimates of ($0.98) by $0.03. Ambarella had a negative return on equity of 23.78% and a negative net margin of 74.81%. The company had revenue of $51.62 million for the quarter, compared to analysts’ expectations of $51.68 million. As a group, equities analysts predict that Ambarella, Inc. will post -3.53 EPS for the current year.

About Ambarella

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network 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.