Ambarella (NASDAQ:AMBA) Stock Price Down 3% Following Insider Selling

Ambarella, Inc. (NASDAQ:AMBA)’s stock price fell 3% on Friday after an insider sold shares in the company. The company traded as low as $52.15 and last traded at $52.45. 109,129 shares traded hands during trading, a decline of 83% from the average session volume of 625,595 shares. The stock had previously closed at $54.09.

Specifically, CEO Feng-Ming Wang sold 4,382 shares of Ambarella stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $56.02, for a total value of $245,479.64. Following the completion of the transaction, the chief executive officer now directly owns 803,574 shares of the company’s stock, valued at $45,016,215.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Yun-Lung Chen sold 5,963 shares of the company’s stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $57.56, for a total transaction of $343,230.28. Following the transaction, the vice president now owns 62,026 shares in the company, valued at approximately $3,570,216.56. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on AMBA. Rosenblatt Securities reaffirmed a “buy” rating and issued a $85.00 target price on shares of Ambarella in a research note on Friday, August 23rd. Bank of America boosted their price objective on shares of Ambarella from $50.00 to $57.00 and gave the stock an “underperform” rating in a research report on Wednesday, August 28th. 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. Morgan Stanley boosted their target price on Ambarella from $67.00 to $73.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 28th. Finally, Wells Fargo & Company decreased their price target on Ambarella from $65.00 to $55.00 and set an “equal weight” rating on the stock in a report on Friday, May 31st. Two analysts have rated the stock with a sell rating, three have given a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, Ambarella currently has an average rating of “Hold” and a consensus target price of $74.58.

Ambarella Trading Down 3.8 %

The company has a market capitalization of $2.13 billion, a P/E ratio of -12.22 and a beta of 1.63. The business has a 50 day moving average price of $53.14 and a 200 day moving average price of $51.71.

Ambarella (NASDAQ:AMBA) last issued its earnings results on Tuesday, August 27th. The semiconductor company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.19) by $0.06. The firm 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 25.76%. The business’s quarterly revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.76) earnings per share. On average, analysts forecast that Ambarella, Inc. will post -2.99 EPS for the current fiscal year.

Institutional Trading of Ambarella

Hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Ambarella by 22.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,275 shares of the semiconductor company’s stock worth $177,000 after acquiring an additional 590 shares in the last quarter. Creative Planning bought a new stake in Ambarella during the 2nd quarter worth approximately $325,000. Cim Investment Management Inc. bought a new stake in Ambarella during the 2nd quarter worth approximately $239,000. The Manufacturers Life Insurance Company raised its holdings in Ambarella by 36.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,291,900 shares of the semiconductor company’s stock worth $69,698,000 after buying an additional 343,385 shares during the period. Finally, Millennium Management LLC lifted its stake in Ambarella by 7.0% in the second quarter. Millennium Management LLC now owns 1,447,466 shares of the semiconductor company’s stock valued at $78,091,000 after buying an additional 94,257 shares in the last quarter. Institutional investors and hedge funds 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.