Ambarella (NASDAQ:AMBA) Lifted to Hold at Zacks Investment Research

Ambarella (NASDAQ:AMBA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports. The brokerage presently has a $47.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 2.53% from the stock’s current price.

According to Zacks, “Ambarella is benefiting from its transition to a video AI company. Ramping up of production and shipments in the automotive and security camera market is a key driver. Ambarella’s CV portfolio is also attracting customers and helping it expand client base. Customers are also replacing products of HiSilicon with Ambarella, which is a positive for the company. Growing application of computer vision for ADAS and Driver Monitor System is a positive too. However, global tariff issues, export restrictions and hostile macroeconomic conditions remain concerns. Moreover, Ambarella predicts consumer electronics revenues to decline as a percentage of revenues over the next three years, which makes us apprehensive. Also, the pandemic coronavirus is likely to impact Ambarella's supply chain. The stock has underperformed the industry over the past year.”

A number of other equities analysts have also commented on the stock. Craig Hallum cut their price objective on shares of Ambarella from $68.00 to $60.00 and set a “hold” rating for the company in a research report on Thursday, May 28th. Morgan Stanley dropped their target price on shares of Ambarella from $85.00 to $79.00 and set an “overweight” rating for the company in a research report on Wednesday, March 18th. Rosenblatt Securities started coverage on shares of Ambarella in a research report on Monday, June 22nd. They set a “buy” rating and a $60.00 target price for the company. Stifel Nicolaus lifted their target price on shares of Ambarella from $60.00 to $62.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Finally, Cfra boosted their price objective on shares of Ambarella from $60.00 to $65.00 and gave the stock a “hold” rating in a report on Wednesday, March 4th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and eight have issued a buy rating to the stock. Ambarella presently has an average rating of “Hold” and a consensus target price of $59.77.

NASDAQ AMBA traded up $1.40 on Tuesday, hitting $45.84. 2,618 shares of the company were exchanged, compared to its average volume of 772,415. The company has a market cap of $1.54 billion, a PE ratio of -35.77 and a beta of 1.24. Ambarella has a 12 month low of $36.02 and a 12 month high of $73.59. The stock has a fifty day moving average of $52.98 and a 200-day moving average of $55.04. The company has a current ratio of 8.91, a quick ratio of 8.48 and a debt-to-equity ratio of 0.02.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Tuesday, June 2nd. The semiconductor company reported $0.04 earnings per share for the quarter, topping the consensus estimate of ($0.01) by $0.05. The firm had revenue of $54.60 million during the quarter, compared to the consensus estimate of $54.32 million. Ambarella had a negative net margin of 18.18% and a negative return on equity of 9.00%. The company’s revenue was up 15.7% on a year-over-year basis. During the same quarter last year, the company earned $0.01 earnings per share. On average, analysts expect that Ambarella will post -1.52 earnings per share for the current year.

In other news, Director Christopher B. Paisley sold 1,500 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $54.67, for a total value of $82,005.00. Also, Director David Jeffrey Richardson sold 7,453 shares of the company’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $54.92, for a total transaction of $409,318.76. Following the completion of the sale, the director now directly owns 9,046 shares in the company, valued at $496,806.32. The disclosure for this sale can be found here. Insiders sold a total of 14,508 shares of company stock worth $801,404 over the last ninety days. Insiders own 5.69% of the company’s stock.

A number of institutional investors have recently made changes to their positions in AMBA. FMR LLC boosted its stake in Ambarella by 2,202.9% in the 4th quarter. FMR LLC now owns 647,356 shares of the semiconductor company’s stock worth $39,204,000 after purchasing an additional 619,245 shares in the last quarter. Morgan Stanley boosted its stake in Ambarella by 142.8% in the 1st quarter. Morgan Stanley now owns 732,675 shares of the semiconductor company’s stock worth $35,579,000 after purchasing an additional 430,915 shares in the last quarter. Frontier Capital Management Co. LLC bought a new position in Ambarella in the 1st quarter worth about $17,623,000. Renaissance Technologies LLC boosted its stake in Ambarella by 37.8% in the 4th quarter. Renaissance Technologies LLC now owns 1,084,633 shares of the semiconductor company’s stock worth $65,685,000 after purchasing an additional 297,407 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its stake in Ambarella by 28.0% in the 4th quarter. Janus Henderson Group PLC now owns 933,242 shares of the semiconductor company’s stock worth $56,512,000 after purchasing an additional 204,353 shares in the last quarter. Institutional investors own 75.11% of the company’s stock.

About Ambarella

Ambarella, Inc develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, computer vision functionality, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.

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