Ambarella (NASDAQ:AMBA) Trading Down 2.7% After Insider Selling

Ambarella, Inc. (NASDAQ:AMBA)’s share price dropped 2.7% on Friday following insider selling activity. The company traded as low as $54.09 and last traded at $54.26. Approximately 129,973 shares were traded during trading, a decline of 79% from the average daily volume of 619,652 shares. The stock had previously closed at $55.77.

Specifically, CEO Feng-Ming Wang sold 4,301 shares of the company’s stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $53.54, for a total value of $230,275.54. Following the completion of the sale, the chief executive officer now owns 799,527 shares of the company’s stock, valued at $42,806,675.58. 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 1,608 shares of Ambarella stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $53.54, for a total transaction of $86,092.32. Following the transaction, the chief technology officer now directly owns 961,433 shares in the company, valued at $51,475,122.82. The disclosure for this sale can be found here. In other news, COO Chan W. Lee sold 1,490 shares of the stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $53.54, for a total value of $79,774.60. Following the completion of the sale, the chief operating officer now owns 121,406 shares of the company’s stock, valued at approximately $6,500,077.24. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Wall Street Analyst Weigh In

A number of research analysts recently commented on AMBA shares. Bank of America upped their price objective on Ambarella from $50.00 to $57.00 and gave the company an “underperform” rating in a report on Wednesday, August 28th. Westpark Capital reaffirmed a “buy” rating and issued a $85.00 price target on shares of Ambarella in a research note on Monday, August 26th. Needham & Company LLC reissued a “buy” rating and set a $90.00 price objective on shares of Ambarella in a research report on Wednesday, August 28th. Roth Mkm restated a “neutral” rating and issued a $60.00 price objective on shares of Ambarella in a report on Wednesday, August 28th. Finally, Stifel Nicolaus increased their target price on shares of Ambarella from $75.00 to $80.00 and gave the stock a “buy” rating in a research note on Wednesday, August 28th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $75.00.

Ambarella Price Performance

The stock’s 50 day simple moving average is $52.07 and its 200-day simple moving average is $51.49. The company has a market capitalization of $2.23 billion, a PE ratio of -12.77 and a beta of 1.63.

Ambarella (NASDAQ:AMBA) last announced its earnings results on Tuesday, August 27th. The semiconductor company reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.19) by $0.06. Ambarella had a negative net margin of 79.46% and a negative return on equity of 26.01%. The firm had revenue of $63.70 million for the quarter, compared to the consensus estimate of $62.10 million. During the same period in the prior year, the firm earned ($0.76) EPS. The firm’s revenue for the quarter was up 2.6% on a year-over-year basis. On average, equities analysts predict that Ambarella, Inc. will post -2.99 earnings per share for the current year.

Institutional Trading of Ambarella

Hedge funds have recently modified their holdings of the stock. Meeder Asset Management Inc. purchased a new stake in Ambarella during the 2nd quarter worth about $26,000. CWM LLC increased its stake in shares of Ambarella by 127.7% during the second quarter. CWM LLC now owns 542 shares of the semiconductor company’s stock worth $29,000 after buying an additional 304 shares during the period. Van ECK Associates Corp raised its holdings in Ambarella by 62.1% in the second quarter. Van ECK Associates Corp now owns 1,441 shares of the semiconductor company’s stock valued at $78,000 after acquiring an additional 552 shares in the last quarter. Larson Financial Group LLC lifted its stake in Ambarella by 13,576.9% in the first quarter. Larson Financial Group LLC now owns 1,778 shares of the semiconductor company’s stock worth $90,000 after acquiring an additional 1,765 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Ambarella by 22.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,275 shares of the semiconductor company’s stock worth $177,000 after acquiring an additional 590 shares in the last quarter. 82.09% of the stock is currently owned by institutional investors and hedge funds.

Ambarella Company Profile

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.