Ambarella, Inc. (NASDAQ:AMBA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday, July 11th.
According to Zacks, “Ambarella develops video compression and image processing semiconductors. The company had reported better-than-expected first-quarter fiscal 2018 results. However, the company’s disappointing guidance for the forthcoming quarter makes us increasingly cautious about its near-term prospect. The soft guidance provided by the company may be due to the number of challenges it has been facing. 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. Also, macroeconomic challenges and tepid IT spending remain other near-term concerns. Notably, the stock has underperformed the broader market in the last one year.”
A number of other equities research analysts also recently commented on the company. Canaccord Genuity reaffirmed a “buy” rating and issued a $72.00 price objective on shares of Ambarella in a research report on Tuesday, July 11th. BidaskClub downgraded Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, June 16th. Needham & Company LLC reaffirmed a “hold” rating on shares of Ambarella in a research report on Friday, June 9th. Oppenheimer Holdings, Inc. reaffirmed a “market perform” rating on shares of Ambarella in a research report on Friday, June 9th. Finally, Deutsche Bank AG lowered their price objective on Ambarella from $55.00 to $54.00 and set a “hold” rating for the company in a research report on Friday, June 9th. Six equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Ambarella has a consensus rating of “Buy” and a consensus price target of $67.88.
Ambarella (AMBA) traded up 0.34% during trading on Tuesday, reaching $50.70. The company’s stock had a trading volume of 395,239 shares. Ambarella has a 52 week low of $46.80 and a 52 week high of $74.95. The company has a market capitalization of $1.70 billion, a PE ratio of 29.96 and a beta of 1.61. The company has a 50 day moving average price of $50.26 and a 200-day moving average price of $54.11.
Ambarella (NASDAQ:AMBA) last announced its quarterly earnings data on Tuesday, June 6th. The semiconductor company reported $0.39 EPS for the quarter, beating the Zacks’ consensus estimate of $0.36 by $0.03. The business had revenue of $64.10 million during the quarter, compared to the consensus estimate of $63.54 million. Ambarella had a return on equity of 13.70% and a net margin of 18.47%. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.34 earnings per share. Equities research analysts anticipate that Ambarella will post $2.07 earnings per share for the current year.
Ambarella declared that its Board of Directors has approved a share buyback program on Tuesday, June 6th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.
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In other news, CEO Feng-Ming Wang sold 11,628 shares of Ambarella stock in a transaction dated Friday, June 16th. The stock was sold at an average price of $48.77, for a total transaction of $567,097.56. Following the sale, the chief executive officer now directly owns 290,691 shares of the company’s stock, valued at $14,177,000.07. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Leslie Kohn sold 5,973 shares of Ambarella stock in a transaction dated Friday, June 16th. The stock was sold at an average price of $48.77, for a total value of $291,303.21. Following the sale, the insider now directly owns 904,530 shares in the company, valued at $44,113,928.10. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 23,963 shares of company stock worth $1,168,676. 5.80% of the stock is currently owned by insiders.
Hedge funds have recently made changes to their positions in the company. First National Bank of Omaha raised its stake in shares of Ambarella by 53.9% in the first quarter. First National Bank of Omaha now owns 22,378 shares of the semiconductor company’s stock valued at $1,224,000 after buying an additional 7,835 shares in the last quarter. Teachers Advisors LLC raised its stake in shares of Ambarella by 60.3% in the fourth quarter. Teachers Advisors LLC now owns 265,381 shares of the semiconductor company’s stock valued at $14,365,000 after buying an additional 99,777 shares in the last quarter. State Street Corp raised its stake in shares of Ambarella by 6.0% in the fourth quarter. State Street Corp now owns 542,915 shares of the semiconductor company’s stock valued at $29,388,000 after buying an additional 30,766 shares in the last quarter. Russell Investments Group Ltd. purchased a new stake in shares of Ambarella during the fourth quarter valued at $1,517,000. Finally, Tudor Investment Corp ET AL purchased a new stake in shares of Ambarella during the first quarter valued at $796,000. 57.65% 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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