Mobileye NV (MBLY) Shares Plunge On NVIDEA (NVDA) News


Mobileye NV (NYSE:MBLY) shares have been hit hard over the last four and a half months. In fact the stock is down over 40% since August, and the bleeding has continued today. The stock fell significantly throughout trading today, after news broke that NVIDEA would be entering the automated car space with a new supercomputer made just for self-driving vehicles.

Analysts, however, feel that the selloff may not have been unwarranted, especially since Mobileye NV (NYSE:MBLY) specializes in software for computer vision, while the news from NVIDEA today is related more to the hardware side of the automated vehicle space. Shares are up over 2.75% in after hours trading, however, as many traders may now view the stock us being oversold. The stock decreased 9.56% or $3.82 during the last trading session, hitting $36.12. About 11.00M shares traded hands or 208.99% up from the average. MBLY has declined 13.96% since June 1, 2015 and is downtrending. It has underperformed the S&P500 by 9.27%.

From a total of 8 analysts covering Mobileye (NYSE:MBLY) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $80 while the lowest target price is $50. The mean of all analyst targets is $70.67 which is 95.65% above today’s ($36.12) stock price. Mobileye was the topic of 10 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. FBR Capital initiated shares on December 10 with a “Mkt Perform” rating. Barclays Capital upgraded MBLY stock in a recent report from October 9 to a “Neutral” rating.

Mobileye NV designs and develops software and related technologies for camera advanced driver assistance systems . The company has a market cap of $8.68 billion. The Company’s software algorithms and EyeQ system on a chip (SOC) perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. It has 165.23 P/E ratio. The Company’s products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights.