Today’s big question for investors is, “what’s going on with Ambarella, Inc. (NASDAQ:AMBA) stock? Its price is jumping 1.46 points, trading at $46.26 levels, and is up 3.26% from its previous close of $44.8. The shares seem to have an active trading volume day with a reported 282033 contracts so far this session. AMBA shares had a relatively better volume day versus average trading capacity of 625.75 thousand shares, but with a 31.14 million float and a 0.79% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AMBA stock indicates that the average analyst price target is $47.44 per share. This means the stock has a potential increase of 2.55% from where the AMBA share price has been trading recently which is between $44.71 and $45.6. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $38.
The shorts are running away from Ambarella, Inc. (AMBA) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a drop in short interest in AMBA shares. While short interest still represents only 14.91% of AMBA’s float, the number of shares shorted have fallen by -149027. The number of shares shorted fell to 4494467 shares, down from 4643494 shares during the preceding fortnight. With average daily trading volumes at 440835 shares, days to cover increased to about 4.572051 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Bosch Honors Ambarella with Bosch Global Supplier Award” and dated July 11, 2019.
During the recent trading session for Ambarella, Inc. (NASDAQ:AMBA), the company witnessed their stock rise $1.76 over a week and surge $4.17 from the price 20 days ago. When compared to their established 52-week high of $52.12, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 04/24/19. The recent low of $30 stood for a -11.24% since 11/20/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.31 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Ambarella, Inc., the two-week RSI stands at 61.38. This figure suggests that AMBA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AMBA readings is similarly very revealing as it has a stochastic reading of 70.7% at this stage. This figure means that AMBA share price today is being oversold.
Technical chart claims that Ambarella, Inc. (AMBA) would settle between $45.36/share to $45.93/share level. However, if the stock price goes below the $44.47 mark, then the market for Ambarella, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $44.15 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.45. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at BofA/Merrill lifted target price for shares of AMBA but were stick to Underperform recommendation for the stock in their opinion released on June 05. The price target has been raised from $36 to $42. Needham analysts have lowered their rating of Ambarella, Inc. (NASDAQ:AMBA) stock from Hold to Underperform in a separate flash note issued to investors on June 05. Analysts at Craig Hallum released an upgrade from Hold to Buy for the stock, in a research note that dated back to March 06.
AMBA equity has an average rating of 2.5, with the figure leaning towards a bullish end. 12 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 8 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 6 analysts rated Ambarella, Inc. (NASDAQ:AMBA) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AMBA stock price is currently trading at 84.53X forward 12-month Consensus EPS estimates, and its P/S ratio is 5.1 while for the average stock in the same group, the multiple is 8.19. Ambarella, Inc. current P/E ratio of 32.3 means it is trading at a discount against its industry’s 165.55. In the past 5 years, this ratio for the stock has been fluctuating between 16.54 and 37.71.
Ambarella, Inc. (AMBA)’s current-quarter revenues are projected to climb by nearly -16.68% to hit $52.05 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -8.37% from $227770 to a noteworthy $208710. At the other end of the current quarter income statement, Ambarella, Inc. is expected to see its adjusted earnings surge by roughly -92% to hit $0.02 per share. For the fiscal year, AMBA’s earnings are projected to climb by roughly -86.3% to hit $0.1 per share.