The stock of Ambarella, Inc. (NASDAQ:AMBA) is now priced at $57.72 and the shares are 5.02 points up or 9.53% higher compared to its previous closing price of $52.7. The stock had 2.047 million contracts set over the past session. AMBA shares’ daily volume is compared to its average trading volume at 520515 shares. However, it has a float of 32.72 million and although its performance was 11.6% over the week, it’s one to watch. Analysts have given the AMBA stock a yearly average price target of $59.83 per share. It means the stock’s upside potential is 3.66% with the AMBA share price recently placing at $52.71 to $57.75. However, some brokerage firms have priced the stock below the average, including one that has called $50.
The shorts are climbing into the Ambarella, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the AMBA shares have risen. Short interest in the stock represents just 7.86% of its float, but the volume has raised by 83124. The volume of shorted shares rised to 2.572 million from 2.489 million shares over the last two weeks. The average intraday trading volume has been 238170 shares, which means that days to cover moved to roughly 10.800248.
In the last trading session, Ambarella, Inc. (NASDAQ:AMBA) raised by $6 over the week and gained $11.06 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $73.59. The stock recorded its established 52-week high on 02/12/20.
Since 03/17/20, the stock has traded to a low of $36.02 at 60.24%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.16. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Ambarella, Inc.’s two-week RSI is 75.52. This suggests that the stock is oversold at the moment and that AMBA shares’ price movement remains not stable. The stochastic readings are equally revealing at 90.49% meaning the AMBA share price is currently in oversold territory.
The technical chart shows that the AMBA stock will likely settle at between $59.41 and $61.1 per share. However, if the stock dips below $54.37, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $51.02.
Currently, the stock is trading in the green of MACD, with a reading of 3.62. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Needham raised their recommendation for AMBA from Underperform to Buy in July 07 review while maintain their target price of $55. Rosenblatt analysts see the stock as a Buy with a target price of $60 in a flash note released to investors on June 23 initiating covering the stock. Imperial Capital analysts see the stock as Outperform when the analysts initiated the share price coverage on June 23, placing it at $58.
The average rating for the AMBA equity is 2.47 and is currently gathering a bullish momentum. Of 15 analysts tracking Ambarella, Inc. polled by Reuters, 7 rated AMBA as a hold. The remaining 8 analysts were split evenly. However, the split wasn’t equal as a majority (7) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the AMBA stock price is 153.51X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 31.5. Ambarella, Inc. has its P/E ratio at 4.4, which means that the stock is currently trading at a discount relative to the 8.1 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Ambarella, Inc. (NASDAQ:AMBA) will decrease by about -99.91%, which will see them reach $50.03 million. The company’s full-year revenues are, however, expected to diminish by about -6.93%, down from $229 million to $213 million. AMBA’s expected adjusted earnings should drop almost -109.52% to end up at -$0.02 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -91.3% to record $0.06/share.