It’s still a bull thesis, just subverted: Ambarella Inc (AMBA)

At the time of writing, Ambarella Inc [AMBA] stock is trading at $76.22, up 5.09%. In order to assess the stock’s recent performance, you can check whether its short-term value is rising or falling. The AMBA shares have gain 2.02% over the last week, with a monthly amount glided 30.29%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Ambarella Inc [NASDAQ: AMBA] stock has seen the most recent analyst activity on December 16, 2024, when BofA Securities upgraded its rating to a Neutral but kept the price target unchanged to $80 for it. Previously, Needham reaffirmed its Buy rating on November 27, 2024, and elevated its price target to $100. On August 28, 2024, TD Cowen reiterated its Hold rating and revised its price target to $75 on the stock. Wells Fargo downgraded its rating to a Equal Weight and decreased its price target to $65 on January 03, 2024. Northland Capital initiated its recommendation with a Outperform and recommended $70 as its price target on September 18, 2023. Needham reiterated a Buy rating for this stock on August 30, 2023, and downed its price target to $90. In a note dated August 30, 2023, TD Cowen downgraded an Market Perform rating on this stock and revised its target price from $90 to $65.

For the past year, the stock price of Ambarella Inc fluctuated between $39.69 and $81.32. Currently, Wall Street analysts expect the stock to reach $75 within the next 12 months. Ambarella Inc [NASDAQ: AMBA] shares were valued at $76.22 at the most recent close of the market. An investor can expect a potential drop of -1.6% based on the average AMBA price forecast.

Analyzing the AMBA fundamentals

According to Ambarella Inc [NASDAQ:AMBA], the company’s sales were 252.47M for trailing twelve months, which represents an 63.36% jump. Gross Profit Margin for this corporation currently stands at 0.6% with Operating Profit Margin at -0.56%, Pretax Profit Margin comes in at -0.53%, and Net Profit Margin reading is -0.62%. To continue investigating profitability, this company’s Return on Assets is posted at -0.23, Equity is -0.28 and Total Capital is -0.25. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.01.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 73.92 points at the first support level, and at 71.62 for the second support level. However, for the 1st resistance point, the stock is sitting at 77.90, and for the 2nd resistance point, it is at 79.58.

Ratios To Look Out For

It is important to note that Ambarella Inc [NASDAQ:AMBA] has a current ratio of 2.84. In addition, the Quick Ratio stands at 2.50 and the Cash Ratio stands at 1.19. Considering the valuation of this stock, the price to sales ratio is 12.49, the price to book ratio is 5.73.

Transactions by insiders

Recent insider trading involved Hon Hsiao-Wuen, Director, that happened on Dec 13 ’24 when 377.0 shares were sold. Sr. Vice President, Systems, Ju Chi-Hong completed a deal on Dec 09 ’24 to sell 5118.0 shares. Meanwhile, Officer Ju Chi-Hong bought 5118.0 shares on Dec 09 ’24.

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