Ambarella Inc. [AMBA] is -66.54% lower this YTD. Is it still time to buy?

Ambarella Inc. [NASDAQ: AMBA] plunged by -$16.62 during the normal trading session on Wednesday and reaching a high of $77.57 during the day while it closed the day at $67.88. The company report on August 30, 2022 that Ambarella, Inc. Announces Second Quarter Fiscal Year 2023 Financial Results.

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Ambarella, Inc. (NASDAQ: AMBA), an edge AI vision silicon company, today announced financial results for its second quarter of fiscal year 2023 ended July 31, 2022.

Revenue for the second quarter of fiscal 2023 was $80.9 million, up 2% from $79.3 million in the same period in fiscal 2022. For the six months ended July 31, 2022, revenue was $171.2 million, up 15% from $149.5 million for the six months ended July 31, 2021.

Ambarella Inc. stock has also loss -18.95% of its value over the past 7 days. However, AMBA stock has declined by -18.62% in the 3 months of the year. Over the past six months meanwhile, it has lost -31.98% and lost -66.54% year-on date.

The market cap for AMBA stock reached $2.69 billion, with 37.72 million shares outstanding and 35.97 million shares in the current float. Compared to the average trading volume of 528.35K shares, AMBA reached a trading volume of 4536539 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Ambarella Inc. [AMBA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AMBA shares is $113.04 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AMBA stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Summit Insights have made an estimate for Ambarella Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 31, 2022. While these analysts kept the previous recommendation, Wells Fargo dropped their target price from $205 to $175. The new note on the price target was released on March 01, 2022, representing the official price target for Ambarella Inc. stock. Previously, the target price had yet another drop from $230 to $190, while Stifel kept a Buy rating on AMBA stock. On March 01, 2022, analysts decreased their price target for AMBA shares from 250 to 200.

The Average True Range (ATR) for Ambarella Inc. is set at 4.99, with the Price to Sales ratio for AMBA stock in the period of the last 12 months amounting to 7.65. The Price to Book ratio for the last quarter was 4.46. Price to Free Cash Flow for AMBA in the course of the last twelve months was 41.75 with Quick ratio for the last quarter at 3.20.

AMBA stock trade performance evaluation

Ambarella Inc. [AMBA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -18.95. With this latest performance, AMBA shares dropped by -22.13% in over the last four-week period, additionally sinking by -31.98% over the last 6 months – not to mention a drop of -34.46% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AMBA stock in for the last two-week period is set at 32.52, with the RSI for the last a single of trading hit 24.71, and the three-weeks RSI is set at 37.77 for Ambarella Inc. [AMBA]. The present Moving Average for the last 50 days of trading for this stock 78.06, while it was recorded at 81.80 for the last single week of trading, and 113.77 for the last 200 days.

Ambarella Inc. [AMBA]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Ambarella Inc. [AMBA] shares currently have an operating margin of -7.79 and a Gross Margin at +61.87. Ambarella Inc.’s Net Margin is presently recorded at -7.96.

Return on Equity for this stock declined to -5.17, with Return on Assets sitting at -4.29.

Ambarella Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.20 and a Current Ratio set at 3.70.

Earnings per share (EPS) analysis for Ambarella Inc. [AMBA] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AMBA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ambarella Inc. go to 15.91%.

Ambarella Inc. [AMBA]: Insider Ownership positions

There are presently around $2,022 million, or 81.90% of AMBA stock, in the hands of institutional investors. The top three institutional holders of AMBA stocks are: BLACKROCK INC. with ownership of 3,931,326, which is approximately -2.401% of the company’s market cap and around 5.50% of the total institutional ownership; VANGUARD GROUP INC, holding 3,491,715 shares of the stock with an approximate value of $237.02 million in AMBA stocks shares; and MACQUARIE GROUP LTD, currently with $111.34 million in AMBA stock with ownership of nearly 61.864% of the company’s market capitalization.

Positions in Ambarella Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 127 institutional holders increased their position in Ambarella Inc. [NASDAQ:AMBA] by around 4,323,171 shares. Additionally, 155 investors decreased positions by around 3,924,865 shares, while 42 investors held positions by with 21,535,847 shares. The mentioned changes placed institutional holdings at 29,783,883 shares, according to the latest SEC report filing. AMBA stock had 29 new institutional investments in for a total of 586,663 shares, while 56 institutional investors sold positions of 756,748 shares during the same period.


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