Ambarella (NASDAQ:AMBA) Downgraded by Summit Insights to “Hold”

Summit Insights downgraded shares of Ambarella (NASDAQ:AMBA) from a buy rating to a hold rating in a research note issued to investors on Friday, Marketbeat Ratings reports.

Other research analysts also recently issued reports about the company. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 target price on shares of Ambarella in a report on Tuesday. Bank of America upped their price objective on Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a report on Friday. Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Finally, Stifel Nicolaus set a $106.00 price objective on Ambarella in a report on Friday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $99.75.

Ambarella Price Performance

Shares of AMBA opened at $72.18 on Friday. The company has a market capitalization of $3.17 billion, a P/E ratio of -44.83 and a beta of 2.17. Ambarella has a one year low of $48.30 and a one year high of $96.69. The business’s 50 day simple moving average is $65.86 and its 200-day simple moving average is $68.45.

Ambarella (NASDAQ:AMBA) last announced its earnings results on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, hitting the consensus estimate of $0.11. The business had revenue of $100.36 million for the quarter, compared to the consensus estimate of $100.12 million. Ambarella had a negative return on equity of 11.02% and a negative net margin of 17.18%.Ambarella’s revenue was up 16.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.07 EPS. On average, sell-side analysts anticipate that Ambarella will post -1.27 EPS for the current fiscal year.

Insider Transactions at Ambarella

In other Ambarella news, CFO John Alexander Young sold 4,577 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $241,528.29. Following the transaction, the chief financial officer owned 117,072 shares of the company’s stock, valued at approximately $6,177,889.44. This represents a 3.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Chi-Hong Ju sold 4,729 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total value of $249,549.33. Following the transaction, the vice president directly owned 164,166 shares in the company, valued at approximately $8,663,039.82. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 136,799 shares of company stock worth $8,917,902 in the last quarter. 4.50% of the stock is owned by corporate insiders.

Institutional Trading of Ambarella

Institutional investors and hedge funds have recently made changes to their positions in the business. GSA Capital Partners LLP raised its position in shares of Ambarella by 145.2% during the 4th quarter. GSA Capital Partners LLP now owns 24,800 shares of the semiconductor company’s stock valued at $1,757,000 after acquiring an additional 14,685 shares during the last quarter. Exchange Traded Concepts LLC raised its position in shares of Ambarella by 30.1% during the 4th quarter. Exchange Traded Concepts LLC now owns 353,101 shares of the semiconductor company’s stock valued at $25,014,000 after acquiring an additional 81,668 shares during the last quarter. Leonteq Securities AG bought a new stake in shares of Ambarella during the 4th quarter valued at $1,903,000. Handelsbanken Fonder AB raised its position in shares of Ambarella by 84.0% during the 4th quarter. Handelsbanken Fonder AB now owns 312,326 shares of the semiconductor company’s stock valued at $22,125,000 after acquiring an additional 142,551 shares during the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. bought a new stake in shares of Ambarella during the 4th quarter valued at $1,345,000. Institutional investors own 82.09% of the company’s stock.

Trending Headlines about Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q1 revenue rose 16.9% year over year to $100.4 million and EPS matched expectations, showing solid execution. Ambarella (AMBA) Meets Q1 Earnings Estimates
• Positive Sentiment: The Hanwha edge-AI partnership could bring over $800 million in potential revenue over time, strengthening Ambarella’s long-term growth case. Hanwha and Ambarella Enter Into Long-Term Edge AI Agreement
• Positive Sentiment: Analysts such as Needham and Bank of America raised price targets, signaling continued optimism about Ambarella’s edge-AI and automotive opportunity. Quinn Bolton Reiterates Buy on Ambarella, Sets $100 DCF-Based Price Target on Strengthening Auto, Robotics, and Long-Term Deal Momentum
• Neutral Sentiment: Management announced a $50 million buyback, but investors seem focused more on the near-term outlook than capital return. Ambarella, Inc. Announces First Quarter Fiscal Year 2027 Financial Results
• Negative Sentiment: Second-quarter revenue guidance came in cautious, and supply-chain cost pressures raised concerns about demand and margins later in the year. Ambarella Stock Slides After Lackluster Q1 Results
• Negative Sentiment: Summit Insights downgraded Ambarella to Hold, which reinforced the post-earnings selloff. Summit Insights downgrade on Ambarella

Ambarella Company Profile

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.