While analysts are generally positive on the company, shares of Ambarella Inc (NASDAQ:AMBA) are down big for the second straight day. While yesterday’s decline could have been chalked up to the general market selloff, today, as the Dow is only down slightly, shares of Ambarella Inc (NASDAQ:AMBA) have fallen close to 6% on below average volume.
The stock, which was trading as high as $62.81 as recently as six weeks ago started a major downtrend at the end of December despite a number of solid ratings from analysts. Investors seem perplexed as there appears to be no real end in sight to the carnage. Shares have dropped over 65% since June and the PE ratio for Ambarella Inc (NASDAQ:AMBA) sits at around 17.8 as analysts expect the company to grow their earnings by more that 50% this year over last.
The stock is down 5.92% or $2.98 following the news, hitting $47.36 per share. Approximately 652,100 shares traded hands. AMBA shares have declined 49.85% since June 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 45.15%.
From a total of 18 analysts covering Ambarella Corporation (NASDAQ:AMBA) stock, 12 rate it a “Buy”, 1 a “Sell”, and 5 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $122 while the lowest target price is $60. The mean of all analyst targets is $88.25 which is 86.34% above today’s ($47.36) stock price. Ambarella Corporation was the topic of 33 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Craig Hallum initiated shares on December 23 with a “Buy” rating. Ladenburg Thalmann initiated shares with a”Buy” rating and a $96 target share price in their report from a September 10. Deutsche Bank maintained AMBA stock in a recent report from December 4 with a “Hold” rating. Vetr upgraded the rating on September 3. Vetr has a “Strong-Buy” rating and a $98.44 price target on shares. Finally, Topeka Capital Markets maintained the stock with a “Buy” rating in a report they issued on a December 4.
The institutional sentiment decreased to 1.03 in Q2 2015. It’s down 0.07, from 1.1 in 2015Q2. The ratio turned negative, as 64 funds sold all their Ambarella Inc shares they owned while 68 reduced their positions. 56 funds bought stakes while 80 increased their total positions. Institutions now own 26.66 million shares which is 70.29% more than the previous share count of 15.66 million in 2015Q2.
Valentine Capital Asset Management Inc. holds 2.67% of its total portfolio in Ambarella Inc, equating to 52,299 shares. Mcglinn Capital Management Inc owns 13,500 shares representing 2.35% of their total US portfolio. Moreover, Cadian Capital Management Lp has 1.71% of their total portfolio invested in the company, equating to 821,684 shares. The Illinois-based Premier Asset Managment Llc has a total of 1.69% of their portfolio invested in the stock. Cg Asset Management Llc, a New York-based fund reported 68,100 shares owned.
Since March 13, 2015, the stock had 0 insider buys, and 9 insider sales for a total of $3.02 million in net activity. Day Christopher sold 1,010 shares worth $58,742. Chen Yun-Lung sold 5,739 shares worth $424,309. Kohn Leslie sold 5,415 shares worth $383,382. Laplante George sold 4,450 shares worth $315,060. The insider Wang Feng-Ming sold 8,483 shares worth $600,596.
Ambarella, Inc. is a developer of semiconductor processing solutions for video that enable high-definition , video capture, sharing and display. The company has a market cap of $1.48 billion. The Company’s system-on-a-chip (SoC) creates HD video processing, image processing, audio processing and system functions onto a single chip, delivering video and image. It has 17.89 P/E ratio. In the camera market, its platform enables the creation of high-quality video content in wearable sports cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP), security cameras, telepresence cameras and unmanned aerial vehicles (UAVs).