Needham & Company LLC Reiterates Buy Rating for Ambarella (NASDAQ:AMBA)

Ambarella (NASDAQ:AMBA)‘s stock had its “buy” rating reissued by Needham & Company LLC in a research note issued on Wednesday,Benzinga reports. They presently have a $100.00 target price on the semiconductor company’s stock. Needham & Company LLC’s price target would suggest a potential upside of 35.34% from the stock’s previous close.

AMBA has been the subject of several other research reports. Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price target on shares of Ambarella in a research note on Monday. Roth Capital reaffirmed a “neutral” rating on shares of Ambarella in a research report on Friday, August 29th. Stifel Nicolaus reiterated a “buy” rating and issued a $100.00 target price (up from $90.00) on shares of Ambarella in a report on Wednesday. Summit Insights raised Ambarella from a “hold” rating to a “buy” rating in a research report on Friday, August 29th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Ambarella in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $96.00.

Ambarella Trading Down 18.8%

Shares of NASDAQ AMBA opened at $73.89 on Wednesday. Ambarella has a 12-month low of $38.86 and a 12-month high of $96.69. The firm’s 50-day moving average price is $84.88 and its 200-day moving average price is $72.68. The stock has a market capitalization of $3.15 billion, a price-to-earnings ratio of -35.02 and a beta of 2.14.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Tuesday, November 25th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.21 by $0.06. The company had revenue of $108.45 million during the quarter, compared to analyst estimates of $104.11 million. Ambarella had a negative net margin of 25.46% and a negative return on equity of 14.73%. Ambarella’s quarterly revenue was up 31.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.11 earnings per share. Ambarella has set its Q4 2026 guidance at EPS. On average, equities analysts predict that Ambarella will post -2.81 EPS for the current fiscal year.

Insider Activity

In other news, COO Chan W. Lee sold 1,947 shares of the stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $79.43, for a total value of $154,650.21. Following the transaction, the chief operating officer directly owned 126,972 shares of the company’s stock, valued at approximately $10,085,385.96. This represents a 1.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Elizabeth M. Schwarting sold 2,664 shares of Ambarella stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $85.38, for a total value of $227,452.32. Following the transaction, the director owned 7,314 shares of the company’s stock, valued at $624,469.32. The trade was a 26.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 35,227 shares of company stock valued at $2,875,131. 5.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ambarella

Institutional investors have recently added to or reduced their stakes in the stock. Bayforest Capital Ltd raised its stake in shares of Ambarella by 72.2% in the 2nd quarter. Bayforest Capital Ltd now owns 9,461 shares of the semiconductor company’s stock valued at $625,000 after acquiring an additional 3,966 shares during the period. Sigma Planning Corp acquired a new stake in Ambarella in the 2nd quarter valued at approximately $373,000. Wealth Enhancement Advisory Services LLC purchased a new stake in Ambarella in the second quarter valued at approximately $471,000. Stanley Laman Group Ltd. purchased a new stake in Ambarella in the second quarter valued at approximately $7,344,000. Finally, Asset Management One Co. Ltd. lifted its stake in Ambarella by 268.8% during the second quarter. Asset Management One Co. Ltd. now owns 5,407 shares of the semiconductor company’s stock worth $357,000 after purchasing an additional 3,941 shares in the last quarter. Institutional investors and hedge funds own 82.09% of the company’s stock.

About Ambarella

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence 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.