A look into Ambarella Inc. (AMBA)’s deeper side

Ambarella Inc. (NASDAQ: AMBA) stock jumped 1.38% on Monday to $57.90 against a previous-day closing price of $57.11. With 0.62 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.6 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $57.92 whereas the lowest price it dropped to was $56.50. The 52-week range on AMBA shows that it touched its highest point at $99.86 and its lowest point at $49.02 during that stretch. It currently has a 1-year price target of $78.47. Beta for the stock currently stands at 1.55.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AMBA was down-trending over the past week, with a drop of -3.23%, but this was down by -15.61% over a month. Three-month performance dropped to -32.47% while six-month performance fell -24.62%. The stock lost -11.26% in the past year, while it has lost -29.59% so far this year. A look at the trailing 12-month EPS for AMBA yields -2.50 with Next year EPS estimates of -0.92. For the next quarter, that number is -0.39. This implies an EPS growth rate of -136.00% for this year and 16.50% for next year.

Float and Shares Shorts:

At present, 39.74 million AMBA shares are outstanding with a float of 37.46 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.34 million, which was 3.36% higher than short shares on Jul 30, 2023. In addition to Dr. Feng-Ming Wang Ph.D. as the firm’s Co-Founder, Pres, CEO & Exec. Chairman, Mr. Leslie D. Kohn serves as its Co-Founder, CTO & Director.

Institutional Ownership:

Through their ownership of 79.27% of AMBA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.42% of AMBA, in contrast to 32.04% held by mutual funds. Shares owned by individuals account for 15.09%. As the largest shareholder in AMBA with 10.18% of the stake, The Vanguard Group, Inc. holds 4,032,792 shares worth 4,032,792. A second-largest stockholder of AMBA, BlackRock Fund Advisors, holds 2,411,085 shares, controlling over 6.09% of the firm’s shares. William Blair Investment Manageme is the third largest shareholder in AMBA, holding 1,683,222 shares or 4.25% stake. With a 3.20% stake in AMBA, the Delaware Ivy Science and Technolo is the largest stakeholder. A total of 1,268,614 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.93% of AMBA stock, is the second-largest Mutual Fund holder. It holds 1,159,198 shares valued at 72.04 million. Vanguard Small Cap Index Fund holds 2.47% of the stake in AMBA, owning 979,954 shares worth 60.9 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMBA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AMBA analysts setting a high price target of $105.00 and a low target of $58.00, the average target price over the next 12 months is $78.00. Based on these targets, AMBA could surge 81.35% to reach the target high and rise by 0.17% to reach the target low. Reaching the average price target will result in a growth of 34.72% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded AMBA stock several times over the past three months with 7 Buys and 8 Sells. In these transactions, 22,526 shares were bought while 17,415 shares were sold. The number of buy transactions has increased to 53 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 424,543 while 124,096 shares were sold.