Morgan Stanley Forecasts Strong Price Appreciation for Ambarella (NASDAQ:AMBA) Stock

Ambarella (NASDAQ:AMBA) had its price objective upped by Morgan Stanley from $73.00 to $90.00 in a report published on Wednesday morning,Benzinga reports. They currently have an overweight rating on the semiconductor company’s stock.

Other equities research analysts have also recently issued research reports about the stock. Roth Mkm reaffirmed a “neutral” rating and issued a $60.00 price objective on shares of Ambarella in a research note on Wednesday, August 28th. Bank of America upped their price target on shares of Ambarella from $57.00 to $65.00 and gave the company an “underperform” rating in a research report on Wednesday. Susquehanna lifted their price objective on Ambarella from $70.00 to $85.00 and gave the stock a “positive” rating in a report on Wednesday. TD Cowen boosted their target price on Ambarella from $65.00 to $75.00 and gave the company a “hold” rating in a research note on Wednesday, August 28th. Finally, Northland Securities restated an “outperform” rating and set a $95.00 price target (up from $75.00) on shares of Ambarella in a research report on Wednesday. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $81.67.

Ambarella Stock Performance

Shares of NASDAQ:AMBA opened at $71.55 on Wednesday. The firm has a fifty day moving average of $59.27 and a 200 day moving average of $55.31. Ambarella has a 52-week low of $39.69 and a 52-week high of $81.32. The firm has a market capitalization of $2.95 billion, a PE ratio of -18.54 and a beta of 1.63.

Ambarella (NASDAQ:AMBA) last released its earnings results on Tuesday, August 27th. The semiconductor company reported ($0.13) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.19) by $0.06. Ambarella had a negative return on equity of 23.52% and a negative net margin of 62.38%. The company had revenue of $63.70 million during the quarter, compared to the consensus estimate of $62.10 million. During the same quarter in the previous year, the company posted ($0.76) EPS. Ambarella’s quarterly revenue was up 2.6% compared to the same quarter last year. On average, sell-side analysts forecast that Ambarella will post -3 EPS for the current fiscal year.

Insider Activity

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

Institutional Trading of Ambarella

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Point72 Asset Management L.P. lifted its position in shares of Ambarella by 1,556.9% during the 2nd quarter. Point72 Asset Management L.P. now owns 507,006 shares of the semiconductor company’s stock valued at $27,353,000 after buying an additional 476,406 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in Ambarella by 36.2% during the second quarter. The Manufacturers Life Insurance Company now owns 1,291,900 shares of the semiconductor company’s stock valued at $69,698,000 after purchasing an additional 343,385 shares in the last quarter. Barclays PLC boosted its position in shares of Ambarella by 281.3% in the third quarter. Barclays PLC now owns 388,090 shares of the semiconductor company’s stock worth $21,891,000 after purchasing an additional 286,296 shares during the period. Marshall Wace LLP increased its stake in shares of Ambarella by 69.2% in the second quarter. Marshall Wace LLP now owns 613,346 shares of the semiconductor company’s stock worth $33,090,000 after purchasing an additional 250,778 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake in shares of Ambarella by 6.1% in 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 in the last quarter. Hedge funds and other institutional investors own 82.09% of the company’s stock.

Ambarella Company Profile

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.