Ambarella (NASDAQ:AMBA) Shares Gap Down – Should You Sell?

Ambarella, Inc. (NASDAQ:AMBA) gapped down before the market opened on Wednesday . The stock had previously closed at $90.97, but opened at $79.97. Ambarella shares last traded at $77.4210, with a volume of 962,855 shares changing hands.

Analysts Set New Price Targets

AMBA has been the topic of a number of analyst reports. Bank of America lifted their price target on Ambarella from $63.00 to $90.00 and gave the company a “neutral” rating in a report on Friday, August 29th. Stifel Nicolaus reiterated a “buy” rating and issued a $100.00 target price (up previously from $90.00) on shares of Ambarella in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $80.00 price target on shares of Ambarella in a research report on Wednesday. Northland Securities increased their target price on shares of Ambarella from $75.00 to $95.00 and gave the company an “outperform” rating in a research report on Friday, August 29th. Finally, BNP Paribas upgraded shares of Ambarella to a “strong-buy” rating in a research note on Friday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Ambarella has a consensus rating of “Moderate Buy” and an average target price of $93.44.

Ambarella Trading Down 15.2%

The company’s 50-day moving average is $85.17 and its 200 day moving average is $72.66. The stock has a market capitalization of $3.29 billion, a PE ratio of -36.55 and a beta of 2.14.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings results on Tuesday, November 25th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.06. The business had revenue of $108.45 million for the quarter, compared to analyst estimates of $104.11 million. Ambarella had a negative net margin of 25.46% and a negative return on equity of 14.73%. Ambarella’s revenue for the quarter was up 31.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.11 EPS. Ambarella has set its Q4 2026 guidance at EPS. Sell-side analysts forecast that Ambarella, Inc. will post -2.81 EPS for the current fiscal year.

Insider Transactions at Ambarella

In other news, Director Elizabeth M. Schwarting sold 2,664 shares of the stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $85.38, for a total value of $227,452.32. Following the transaction, the director directly owned 7,314 shares of the company’s stock, valued at approximately $624,469.32. This represents a 26.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Chi-Hong Ju sold 6,156 shares of Ambarella stock in a transaction dated Tuesday, October 14th. The stock was sold at an average price of $80.96, for a total value of $498,389.76. Following the sale, the vice president directly owned 158,874 shares of the company’s stock, valued at $12,862,439.04. This trade represents a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,227 shares of company stock worth $2,875,131 over the last 90 days. Insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Ambarella

Institutional investors have recently bought and sold shares of the business. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Ambarella by 13.2% in the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 7,032 shares of the semiconductor company’s stock valued at $354,000 after acquiring an additional 822 shares during the last quarter. Skandinaviska Enskilda Banken AB publ lifted its position in Ambarella by 452.4% during the first quarter. Skandinaviska Enskilda Banken AB publ now owns 2,497 shares of the semiconductor company’s stock valued at $126,000 after purchasing an additional 2,045 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Ambarella by 8.7% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,721 shares of the semiconductor company’s stock valued at $389,000 after purchasing an additional 615 shares during the last quarter. Mackenzie Financial Corp boosted its holdings in Ambarella by 18.6% in the first quarter. Mackenzie Financial Corp now owns 7,596 shares of the semiconductor company’s stock valued at $382,000 after purchasing an additional 1,190 shares during the last quarter. Finally, Valliance Asset Management Ltd acquired a new stake in Ambarella during the 1st quarter worth about $1,007,000. 82.09% of the stock is owned by hedge funds and other institutional investors.

About Ambarella

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.