Ambarella (NASDAQ:AMBA) Releases Quarterly Earnings Results, Misses Expectations By $0.44 EPS

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

Ambarella Trading Up 3.0 %

Shares of NASDAQ:AMBA traded up $2.18 during midday trading on Wednesday, hitting $75.81. The stock had a trading volume of 1,535,003 shares, compared to its average volume of 677,291. The company has a market capitalization of $3.16 billion, a PE ratio of -19.64 and a beta of 1.66. Ambarella has a 1 year low of $39.69 and a 1 year high of $85.15. The stock has a 50 day moving average price of $76.25 and a two-hundred day moving average price of $64.86.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AMBA shares. Needham & Company LLC increased their price objective on Ambarella from $90.00 to $100.00 and gave the company a “buy” rating in a report on Wednesday, November 27th. StockNews.com lowered shares of Ambarella from a “hold” rating to a “sell” rating in a research note on Tuesday, December 10th. Rosenblatt Securities reissued a “buy” rating and set a $100.00 price objective on shares of Ambarella in a report on Friday, December 6th. Stifel Nicolaus upped their target price on shares of Ambarella from $80.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, November 27th. Finally, Bank of America raised shares of Ambarella from an “underperform” rating to a “neutral” rating and set a $80.00 price target for the company in a research report on Monday, December 16th. One 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’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $85.42.

Insider Activity at Ambarella

In other news, COO Chan W. Lee sold 1,000 shares of the company’s stock in a transaction on Monday, January 6th. The shares were sold at an average price of $79.15, for a total transaction of $79,150.00. Following the transaction, the chief operating officer now directly owns 116,918 shares of the company’s stock, valued at $9,254,059.70. This represents a 0.85 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Hsiao-Wuen Hon sold 377 shares of the firm’s stock in a transaction dated Friday, December 13th. The shares were sold at an average price of $74.15, for a total transaction of $27,954.55. Following the completion of the sale, the director now owns 28,278 shares of the company’s stock, valued at $2,096,813.70. This trade represents a 1.32 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 25,861 shares of company stock worth $1,945,436 over the last 90 days. Company insiders own 5.70% of the company’s stock.

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.