Needham & Company LLC Forecasts Strong Price Appreciation for Ambarella (NASDAQ:AMBA) Stock

Ambarella (NASDAQ:AMBA) had its price target hoisted by equities research analysts at Needham & Company LLC from $90.00 to $100.00 in a note issued to investors on Wednesday, MarketBeat reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s target price would indicate a potential upside of 38.05% from the stock’s previous close.

A number of other brokerages also recently weighed in on AMBA. Susquehanna cut their price objective on Ambarella from $80.00 to $70.00 and set a “positive” rating on the stock in a research note on Monday, October 21st. Bank of America lifted their target price on shares of Ambarella from $50.00 to $57.00 and gave the stock an “underperform” rating in a report on Wednesday, August 28th. Roth Mkm reaffirmed a “neutral” rating and issued a $60.00 price target on shares of Ambarella in a research report on Wednesday, August 28th. Westpark Capital restated a “buy” rating and set a $85.00 target price on shares of Ambarella in a research note on Monday, August 26th. Finally, Stifel Nicolaus increased their price objective on Ambarella from $75.00 to $80.00 and gave the company a “buy” rating in a research report on Wednesday, August 28th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $81.67.

Ambarella Stock Performance

Shares of NASDAQ AMBA opened at $72.44 on Wednesday. The stock has a market cap of $2.99 billion, a price-to-earnings ratio of -16.77 and a beta of 1.63. The business has a 50 day simple moving average of $58.93 and a 200 day simple moving average of $55.13. Ambarella has a 52 week low of $39.69 and a 52 week high of $81.32.

Ambarella (NASDAQ:AMBA) last posted its earnings results on Tuesday, August 27th. The semiconductor company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.19) by $0.06. The company had revenue of $63.70 million during the quarter, compared to the consensus estimate of $62.10 million. Ambarella had a negative net margin of 79.46% and a negative return on equity of 26.01%. The company’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.76) earnings per share. On average, analysts predict that Ambarella will post -3 EPS for the current year.

Insider Activity

In related news, VP Christopher Day sold 483 shares of the business’s stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $53.54, for a total transaction of $25,859.82. Following the completion of the sale, the vice president now directly owns 21,370 shares of the company’s stock, valued at $1,144,149.80. The trade was a 2.21 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Yun-Lung Chen sold 5,963 shares of the stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $57.56, for a total value of $343,230.28. Following the completion of the transaction, the vice president now directly owns 62,026 shares in the company, valued at $3,570,216.56. The trade was a 8.77 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 24,423 shares of company stock worth $1,356,402. Company insiders own 5.70% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in Ambarella by 6.1% during the first quarter. Vanguard Group Inc. now owns 4,340,831 shares of the semiconductor company’s stock worth $220,384,000 after purchasing an additional 248,297 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Ambarella by 7.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 20,575 shares of the semiconductor company’s stock valued at $1,045,000 after buying an additional 1,502 shares during the last quarter. Virtu Financial LLC raised its position in shares of Ambarella by 134.2% in the first quarter. Virtu Financial LLC now owns 13,837 shares of the semiconductor company’s stock valued at $702,000 after purchasing an additional 7,928 shares during the period. CWM LLC raised its holdings in Ambarella by 127.7% in the 2nd quarter. CWM LLC now owns 542 shares of the semiconductor company’s stock valued at $29,000 after acquiring an additional 304 shares during the period. Finally, Linden Thomas Advisory Services LLC increased its stake in shares of Ambarella by 1.7% during the second quarter. Linden Thomas Advisory Services LLC now owns 17,522 shares of the semiconductor company’s stock worth $945,000 after purchasing an additional 288 shares during the period. Institutional investors own 82.09% of the company’s stock.

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.