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

Ambarella (NASDAQ:AMBA) had its price objective hoisted by stock analysts at Morgan Stanley from $73.00 to $90.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an “overweight” rating on the semiconductor company’s stock. Morgan Stanley’s price objective suggests a potential upside of 24.24% from the company’s current price.

Several other equities research analysts have also recently commented on the stock. Stifel Nicolaus lifted their price target on shares of Ambarella from $75.00 to $80.00 and gave the stock a “buy” rating in a research report on Wednesday, August 28th. Westpark Capital reiterated a “buy” rating and set a $85.00 target price on shares of Ambarella in a research report on Monday, August 26th. Needham & Company LLC raised their price target on Ambarella from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Wednesday. Bank of America upped their price objective on Ambarella from $57.00 to $65.00 and gave the company an “underperform” rating in a report on Wednesday. Finally, Roth Mkm restated a “neutral” rating and set a $60.00 target price on shares of Ambarella in a report on Wednesday, August 28th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, Ambarella currently has an average rating of “Hold” and a consensus price target of $81.67.

Ambarella Price Performance

AMBA opened at $72.44 on Wednesday. The company’s 50 day simple moving average is $58.93 and its 200-day simple moving average is $55.13. Ambarella has a one year low of $39.69 and a one year high of $81.32. The stock has a market capitalization of $2.99 billion, a P/E ratio of -16.77 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. The company had revenue of $63.70 million during the quarter, compared to the consensus estimate of $62.10 million. Ambarella had a negative return on equity of 26.01% and a negative net margin of 79.46%. The firm’s quarterly revenue was up 2.6% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.76) earnings per share. As a group, analysts anticipate that Ambarella will post -3 EPS for the current year.

Insider Activity at Ambarella

In other news, CFO John Alexander Young sold 2,139 shares of Ambarella stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $53.54, for a total value of $114,522.06. Following the sale, the chief financial officer now directly owns 103,529 shares in the company, valued at $5,542,942.66. This trade represents a 2.02 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Yun-Lung Chen sold 5,963 shares of the stock in a transaction on 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 of the company’s stock, 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 valued at $1,356,402. 5.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ambarella

Several hedge funds have recently modified their holdings of the stock. Dynamic Technology Lab Private Ltd boosted its position in Ambarella by 592.2% during the third quarter. Dynamic Technology Lab Private Ltd now owns 25,883 shares of the semiconductor company’s stock valued at $1,460,000 after purchasing an additional 22,144 shares during the last quarter. Mirabella Financial Services LLP acquired a new stake in shares of Ambarella in the 3rd quarter valued at approximately $1,530,000. SWS Partners grew its stake in shares of Ambarella by 25.3% in the second quarter. SWS Partners now owns 79,522 shares of the semiconductor company’s stock valued at $4,290,000 after buying an additional 16,049 shares in the last quarter. Millennium Management LLC increased its holdings in Ambarella by 7.0% during the second quarter. Millennium Management LLC now owns 1,447,466 shares of the semiconductor company’s stock worth $78,091,000 after buying an additional 94,257 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. lifted its stake in Ambarella by 18.9% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 226,502 shares of the semiconductor company’s stock valued at $12,776,000 after acquiring an additional 35,977 shares during the last quarter. 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.