Ambarella (NASDAQ:AMBA) Trading 7% Higher – Time to Buy?

Shares of Ambarella, Inc. (NASDAQ:AMBA) shot up 7% during mid-day trading on Friday . The stock traded as high as $70.77 and last traded at $69.1520. 520,635 shares traded hands during mid-day trading, a decline of 62% from the average session volume of 1,355,141 shares. The stock had previously closed at $64.60.

Analyst Ratings Changes

A number of brokerages have weighed in on AMBA. Summit Insights raised Ambarella from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, November 25th. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Ambarella in a report on Wednesday, November 26th. Rosenblatt Securities increased their target price on Ambarella from $100.00 to $115.00 and gave the company a “buy” rating in a report on Wednesday, November 26th. Roth Capital restated a “neutral” rating on shares of Ambarella in a research note on Wednesday, November 26th. Finally, Wall Street Zen lowered shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Saturday, December 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Ambarella has a consensus rating of “Moderate Buy” and an average price target of $96.00.

Ambarella Trading Up 8.0%

The firm’s 50 day simple moving average is $76.59 and its 200 day simple moving average is $76.10. The firm has a market cap of $3.00 billion, a PE ratio of -37.12 and a beta of 1.95.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Tuesday, November 25th. The semiconductor company reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.06. Ambarella had a negative return on equity of 13.02% and a negative net margin of 21.31%.The firm had revenue of $108.45 million during the quarter, compared to analyst estimates of $104.11 million. During the same quarter last year, the business posted $0.11 earnings per share. The business’s quarterly revenue was up 31.2% compared to the same quarter last year. As a group, equities research analysts predict that Ambarella, Inc. will post -2.81 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Feng-Ming Wang sold 4,950 shares of Ambarella stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $71.82, for a total value of $355,509.00. Following the completion of the transaction, the chief executive officer owned 783,979 shares in the company, valued at approximately $56,305,371.78. The trade was a 0.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Elizabeth M. Schwarting sold 624 shares of the stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $72.38, for a total value of $45,165.12. Following the sale, the director owned 6,690 shares in the company, valued at $484,222.20. The trade was a 8.53% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 27,685 shares of company stock worth $2,016,598. 5.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Stephens Inc. AR boosted its stake in shares of Ambarella by 3.7% during the 3rd quarter. Stephens Inc. AR now owns 3,804 shares of the semiconductor company’s stock worth $314,000 after purchasing an additional 137 shares during the period. Vanguard Personalized Indexing Management LLC lifted its stake in Ambarella by 3.2% in the third quarter. Vanguard Personalized Indexing Management LLC now owns 4,537 shares of the semiconductor company’s stock worth $374,000 after purchasing an additional 142 shares during the last quarter. Arizona State Retirement System boosted its position in shares of Ambarella by 1.3% during the third quarter. Arizona State Retirement System now owns 11,899 shares of the semiconductor company’s stock valued at $982,000 after buying an additional 157 shares during the period. National Bank of Canada FI grew its stake in shares of Ambarella by 18.9% during the third quarter. National Bank of Canada FI now owns 1,146 shares of the semiconductor company’s stock valued at $95,000 after buying an additional 182 shares during the last quarter. Finally, Pallas Capital Advisors LLC lifted its stake in shares of Ambarella by 6.5% during the 4th quarter. Pallas Capital Advisors LLC now owns 3,109 shares of the semiconductor company’s stock worth $220,000 after acquiring an additional 190 shares during the last quarter. 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.