Ambarella, Inc. (AMBA) Raised to Hold at Zacks Investment Research
Ambarella, Inc. (NASDAQ:AMBA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Video compression and image processing semiconductors developer, Ambarella has outperformed the industry in the past three months. We remain encouraged by the company’s efforts toward expanding its reach in other markets, such as IP security, automotive, non-GoPro wearable and drones/flying cameras and simultaneously lower dependency on GoPro. Nonetheless, the company’s disappointing guidance for the forthcoming quarter as well as downbeat revenue outlook for fiscal 2018 makes us increasingly cautious about its near-term prospect. The company faces three main challenges, the risk of losing its largest customer, GoPro; weakness in the drone market and increasing threat from QUALCOMM, which is acquiring NXP Semiconductors to build its presence in the same space. “
Other equities research analysts also recently issued reports about the company. Stifel Nicolaus reissued a “buy” rating and issued a $52.00 price objective (down from $64.00) on shares of Ambarella in a research note on Friday, August 25th. Canaccord Genuity reissued a “buy” rating and issued a $72.00 price objective on shares of Ambarella in a research note on Tuesday, July 11th. Dougherty & Co reduced their price objective on Ambarella from $75.00 to $60.00 and set a “buy” rating for the company in a research note on Friday, September 1st. Roth Capital reissued a “buy” rating and issued a $65.00 price objective on shares of Ambarella in a research note on Thursday, August 31st. Finally, Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Ambarella in a research note on Friday, September 1st. Eight research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Ambarella presently has an average rating of “Buy” and an average price target of $58.86.
Ambarella (NASDAQ:AMBA) last announced its quarterly earnings data on Thursday, August 31st. The semiconductor company reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.04. The firm had revenue of $71.63 million during the quarter, compared to the consensus estimate of $70.79 million. Ambarella had a return on equity of 11.94% and a net margin of 16.45%. The business’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 EPS.
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In other news, insider Leslie Kohn sold 6,467 shares of the stock in a transaction dated Monday, September 18th. The stock was sold at an average price of $46.50, for a total transaction of $300,715.50. Following the transaction, the insider now owns 907,645 shares of the company’s stock, valued at approximately $42,205,492.50. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Feng-Ming Wang sold 11,629 shares of the stock in a transaction dated Monday, September 18th. The shares were sold at an average price of $46.50, for a total value of $540,748.50. The disclosure for this sale can be found here. Insiders have sold a total of 27,835 shares of company stock valued at $1,301,265 over the last ninety days. Company insiders own 5.80% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Alps Advisors Inc. increased its holdings in shares of Ambarella by 0.3% during the 2nd quarter. Alps Advisors Inc. now owns 8,559 shares of the semiconductor company’s stock valued at $416,000 after acquiring an additional 22 shares during the last quarter. Amalgamated Bank increased its holdings in shares of Ambarella by 3.6% during the 2nd quarter. Amalgamated Bank now owns 4,126 shares of the semiconductor company’s stock valued at $200,000 after acquiring an additional 143 shares during the last quarter. Dubuque Bank & Trust Co. increased its holdings in shares of Ambarella by 4.0% during the 2nd quarter. Dubuque Bank & Trust Co. now owns 3,793 shares of the semiconductor company’s stock valued at $184,000 after acquiring an additional 147 shares during the last quarter. First National Bank of Omaha increased its holdings in shares of Ambarella by 0.9% during the 2nd quarter. First National Bank of Omaha now owns 22,583 shares of the semiconductor company’s stock valued at $1,096,000 after acquiring an additional 205 shares during the last quarter. Finally, Legal & General Group Plc increased its holdings in shares of Ambarella by 2.6% during the 2nd quarter. Legal & General Group Plc now owns 11,127 shares of the semiconductor company’s stock valued at $543,000 after acquiring an additional 285 shares during the last quarter. 56.84% of the stock is currently owned by institutional investors and hedge funds.
Ambarella, Inc offers semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company operates through the development and sale of low-power, high-definition video products segment. Its system-on-a-chip designs incorporate HD video processing, image processing, audio processing and system functions onto a single chip.
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