Uncovering Institutional Buying In Ambarella Inc. (NASDAQ: AMBA)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Ambarella Inc. (NASDAQ:AMBA). The institutional investor has increased its shareholding in the Technology company by 4.40% to 3.05 million shares with purchase of 0.13 million shares. This fresh investment now brings its stake to 8.87% valued currently at $137.89 million. In addition, BlackRock Fund Advisors raised its holdings by 33610.0 to 2.24 million shares. And Renaissance Technologies LLC has lifted its position by 5.34% or 79900.0 shares – to 1.58 million shares.

    With over 2.04 million Ambarella Inc. (AMBA) shares trading Tuesday and a closing price of $57.72 on the day, the dollar volume was approximately $117.58 million. The shares have shown a positive weekly performance of 11.60% and its price on 09/01/20 gained nearly 9.53%. Currently, there are 34.08M common shares owned by the public and among those 32.72M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for AMBA have a consensus price objective of $59.83. The analysts have set the share’s price value over the next 12 months at a high of $79.00 and a low of $50.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ambarella Inc. stock is 2.50 for the next 12 months. The average price target is 3.53% above its last price level and an upside to the estimated low will see the stock lose -15.44% over that period. But an upside of 26.94% will see the stock hit the forecast high price target while mean target price for the stock is $60.00.

    Insiders at the company have transacted a total of 138 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 61 of these insider trades were purchases, accounting for 342,071 shares. Insider sales of the common stock occurred on 77 occasions, with total insider shares sold totaling 228,259 shares.

    The top 3 mutual fund holders in Ambarella Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and iShares Russell 2000 ETF. Vanguard Total Stock Market Index owns 0.92 million shares of the company’s stock, all valued at over $41.67 million. The company sold 16839.0 shares recently to bring their total holdings to about 2.68% of the shares outstanding. Vanguard Small Cap Index Fund sold 8060.0 shares to see its total holdings shrink to 0.81 million shares valued at over $36.68 million and representing 2.36% of the shares outstanding. iShares Russell 2000 ETF sold 31892.0 shares to bring its total holdings to over 0.68 million shares at a value of $30.93 million. iShares Russell 2000 ETF now owns shares totaling to 1.99% of the shares outstanding.

    Shares of Ambarella Inc. (NASDAQ: AMBA) opened at $52.95, up $0.25 from a prior closing price of $52.70. However, the script later closed the day at $57.72, up 9.53%. The company’s stock has a 5-day price change of 11.60% and 8.92% over the past three months. AMBA shares are trading -4.69% year to date (YTD), with the 12-month market performance down to -0.98% lower. It has a 12-month low price of $36.02 and touched a high of $73.59 over the same period. Currently, 2.04 million shares have been traded, compared to an average intraday trading volume of 520.61K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 21.22%, 23.03%, and 8.78% respectively.

    Institutional ownership of Ambarella Inc. (NASDAQ: AMBA) shares accounts for 77.10% of the company’s 34.08M shares outstanding. Mutual fund holders own 34.05%, while other institutional holders and individual stakeholders account for 39.91% and 14.61% respectively.

    It has a market capitalization of $1.87B and a beta (3y monthly) value of 1.16. The earnings-per-share (ttm) stands at -$1.28. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.86% over the week and 3.85% over the month.

    Analysts forecast that Ambarella Inc. (AMBA) will achieve an EPS of -$0.02 for the current quarter, $0.04 for the next quarter and $0.38 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.04 while analysts give the company a high EPS estimate of $0. Comparatively, EPS for the current quarter was $0.21 a year ago. Earnings per share for the fiscal year are expected to decrease by -45.50%, and 537.29% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to -23.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Ambarella Inc. (AMBA) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 6 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the AMBA, a number of firms have released research notes about the stock. Needham stated their Buy rating for the stock in a research note on July 07, 2020, with the firm’s price target at $55. Rosenblatt coverage for the Ambarella Inc. (AMBA) stock in a research note released on June 23, 2020 offered a Buy rating with a price target of $60. Imperial Capital was of a view on June 23, 2020 that the stock is Outperform, while Robert W. Baird gave the stock Neutral rating on May 29, 2020, issuing a price target of $60. Stifel on their part issued Buy rating on March 26, 2020.


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