Ambarella (NASDAQ:AMBA) Posts Earnings Results, Misses Estimates By $0.44 EPS

Ambarella (NASDAQ:AMBA) posted its quarterly earnings results on Wednesday. The semiconductor company reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.44), Zacks reports. Ambarella had a negative net margin of 62.38% and a negative return on equity of 23.52%. Ambarella updated its Q1 2026 guidance to EPS.

Ambarella Trading Up 3.0 %

Shares of AMBA traded up $2.18 during midday trading on Wednesday, hitting $75.81. 1,535,003 shares of the company’s stock traded hands, compared to its average volume of 677,291. Ambarella has a 1 year low of $39.69 and a 1 year high of $85.15. The firm’s fifty day moving average is $76.25 and its 200-day moving average is $64.86. The stock has a market capitalization of $3.16 billion, a price-to-earnings ratio of -19.64 and a beta of 1.66.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AMBA shares. Susquehanna boosted their target price on shares of Ambarella from $95.00 to $100.00 and gave the company a “positive” rating in a research report on Wednesday, January 22nd. Craig Hallum boosted their price objective on shares of Ambarella from $85.00 to $90.00 and gave the company a “buy” rating in a report on Wednesday, November 27th. Needham & Company LLC raised their target price on shares of Ambarella from $90.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, November 27th. Bank of America raised Ambarella from an “underperform” rating to a “neutral” rating and set a $80.00 price target on the stock in a research report on Monday, December 16th. Finally, Stifel Nicolaus raised their price objective on Ambarella from $80.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday, November 27th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $85.42.

Insider Activity

In other Ambarella news, VP Chi-Hong Ju sold 5,118 shares of the company’s stock in a transaction on Monday, December 9th. The shares were sold at an average price of $75.71, for a total value of $387,483.78. Following the sale, the vice president now directly owns 158,686 shares of the company’s stock, valued at approximately $12,014,117.06. This represents a 3.12 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Chan W. Lee sold 1,488 shares of Ambarella stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $75.41, for a total transaction of $112,210.08. Following the transaction, the chief operating officer now directly owns 119,918 shares of the company’s stock, valued at approximately $9,043,016.38. This trade represents a 1.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 25,861 shares of company stock worth $1,945,436 over the last 90 days. 5.70% of the stock is currently owned by corporate insiders.

Ambarella Company Profile

Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.