Stifel Nicolaus Lowers Ambarella (NASDAQ:AMBA) Price Target to $90.00

Ambarella (NASDAQ:AMBA) had its price objective cut by Stifel Nicolaus from $106.00 to $90.00 in a research note issued on Friday, Benzinga reports. The firm presently has a “buy” rating on the semiconductor company’s stock. Stifel Nicolaus’ price objective suggests a potential upside of 38.96% from the company’s current price.

A number of other equities research analysts have also recently commented on AMBA. Northland Securities set a $101.00 price objective on shares of Ambarella in a research note on Wednesday, June 17th. Summit Insights cut shares of Ambarella from a “buy” rating to a “hold” rating in a research report on Friday, May 29th. Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Bank of America lowered their price target on shares of Ambarella from $96.00 to $70.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $120.00 price objective on shares of Ambarella in a research note on Monday. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ambarella presently has an average rating of “Hold” and an average target price of $89.56.

Ambarella Stock Performance

AMBA stock traded up $1.39 during midday trading on Friday, hitting $64.77. 2,835,728 shares of the stock were exchanged, compared to its average volume of 1,278,222. The stock’s 50-day moving average price is $74.31 and its 200-day moving average price is $68.23. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of -39.94 and a beta of 2.09. Ambarella has a fifty-two week low of $48.30 and a fifty-two week high of $96.69.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.01. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The company had revenue of $108.12 million for the quarter, compared to analyst estimates of $107.76 million. During the same quarter in the prior year, the company earned $0.15 earnings per share. Ambarella’s revenue was up 13.2% compared to the same quarter last year. Research analysts anticipate that Ambarella will post -1.13 EPS for the current year.

Insider Activity at Ambarella

In related news, CFO John Young sold 5,033 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the transaction, the chief financial officer owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Yun-Lung Chen sold 5,958 shares of Ambarella stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $78.66, for a total transaction of $468,656.28. Following the completion of the sale, the vice president directly owned 60,557 shares of the company’s stock, valued at $4,763,413.62. The trade was a 8.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 58,519 shares of company stock worth $4,595,475 over the last three months. Company insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several hedge funds have recently made changes to their positions in AMBA. Royal Bank of Canada lifted its position in Ambarella by 2.1% during the first quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock worth $3,258,000 after buying an additional 1,307 shares during the period. Advisors Asset Management Inc. increased its stake in shares of Ambarella by 44.1% during the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock valued at $47,000 after acquiring an additional 286 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Ambarella by 126.6% during the 1st quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company’s stock worth $4,272,000 after acquiring an additional 47,414 shares during the period. Empowered Funds LLC lifted its holdings in shares of Ambarella by 34.6% during the 1st quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock worth $344,000 after acquiring an additional 1,758 shares during the period. Finally, Intech Investment Management LLC lifted its holdings in shares of Ambarella by 48.1% during the 1st quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock worth $1,288,000 after acquiring an additional 8,306 shares during the period. Institutional investors and hedge funds own 82.09% of the company’s stock.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year, narrowly exceeding the $107.8 million consensus estimate. Non-GAAP EPS of $0.18 also topped expectations and increased from $0.15 a year earlier. Ambarella fiscal Q2 financial results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with the approximately $119.3 million analyst estimate, supporting expectations for continued edge-AI growth. Ambarella Q3 revenue guidance
• Positive Sentiment: Long-term agreements with Macnica and Capgemini could expand Ambarella’s distribution, engineering and systems-integration reach for edge and physical AI applications, although the revenue impact is not yet quantified. Ambarella and Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya maintained a Hold rating, citing elevated valuation and near-term margin uncertainty, while retaining a $96 price objective. Ambarella valuation and margin analysis
• Negative Sentiment: Craig Hallum downgraded Ambarella from Buy to Hold and set a $70 price target. The downgrade signals reduced conviction in the near-term upside following the earnings release. Craig Hallum downgrade
• Negative Sentiment: GAAP results remained unprofitable, with a $6.7 million net loss, while GAAP gross margin declined to 57.7% from 58.9% a year earlier. Management also expects fiscal Q3 non-GAAP gross margin of 59% to 60%, indicating continued margin pressure.
• Negative Sentiment: Reported insider activity remains a cautionary signal: company insiders recorded 23 open-market sales and no purchases over the past six months.

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.