Ambarella Inc. (NASDAQ:AMBA) shares fell to a low of $99.62 before closing at $100.38. Intraday shares traded counted 0.41 million, which was 22.96% higher than its 30-day average trading volume of 536.44K. AMBA’s previous close was $101.95 while the outstanding shares total 35.34M. The firm has a beta of 1.37. The stock’s Relative Strength Index (RSI) is 57.43, with weekly volatility at 3.11% and ATR at 3.91. The AMBA stock’s 52-week price range has touched low of $43.69 and a $137.21 high. The stock traded lower over the last trading session, losing -1.54% on 05/28/21.
Investors have identified the Semiconductor Equipment & Materials company Ambarella Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.70 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Ambarella Inc. (AMBA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 497.3 million total, with 73.97 million as their total liabilities.
AMBA were able to record 28.85 million as free cash flow during the 09/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by 9.87 million. In cash movements, the company had a total of 30.8 million as operating cash flow.
Potential earnings growth for Ambarella Inc. (AMBA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/02/2021 quarter of the year, Ambarella Inc. recorded a total of 62.14 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.93% coming in sequential stages and their sales for the 09/02/2021 quarter increasing by 9.74%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 24.34 million trying to sell their products during the last quarter, with the result yielding a gross income of 37.8 million. This allows shareholders to hold on to 35.34M with the recently reported earning now reading -0.35 cents per share. This is a figure that compared to analyst’s prediction for their 09/02/2021 (-0.39 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AMBA sounds very interesting.
Is the stock of AMBA attractive?
In related news, VP, Marketing, Day Christopher sold 4,585 shares of the company’s stock in a transaction that recorded on Mar 17. The sale was performed at an average price of 109.74, for a total value of 503,180. As the sale deal closes, the VP, Marketing, Day Christopher now sold 5,616 shares of the company’s stock, valued at 628,992. Also, CFO, EICHLER KEVIN C sold 3,301 shares of the company’s stock in a deal that was recorded on Mar 16. The shares were price at an average price of 112.00 per share, with a total market value of 369,712. Following this completion of acquisition, the CEO, Wang Feng-Ming now holds 41,838 shares of the company’s stock, valued at 4,685,856. In the last 6 months, insiders have changed their ownership in shares of company stock by 4.80%.
11 out of 17 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Ambarella Inc.. 0 analysts has assigned a Sell rating on the AMBA stock. The 12-month mean consensus price target for the company’s shares has been set at $132.47.