Lee Chan W, the Chief Operating Officer of Ambarella Inc . (NASDAQ:AMBA), recently sold 1,488 shares of the company's stock, according to a filing with the Securities and Exchange Commission. The transaction, which took place on December 16, was executed at a price of $75.41 per share, amounting to a total sale value of approximately $112,210. The sale occurred as the stock trades near its 52-week high of $81.32, with InvestingPro data showing the company's market capitalization at $2.93 billion.
Following this transaction, Lee Chan holds 119,918 shares in the semiconductor company. The sale was made to cover tax obligations associated with the vesting of restricted stock units, as noted in the filing. InvestingPro analysis indicates the stock has shown strong momentum with a 34% return over the past six months, though current valuations suggest the stock is slightly overvalued. Subscribers can access 10 additional ProTips and comprehensive financial analysis in the Pro Research Report.
In other recent news, Ambarella, a semiconductor company, has seen numerous upgrades from analysts following a strong third quarter. Needham, Rosenblatt Securities, Susquehanna, and Stifel all increased their price targets for the company, with Needham and Rosenblatt both setting it at $100.00. This optimism comes after Ambarella reported third-quarter results that exceeded expectations, with revenue reaching $82.7 million, a 63% year-over-year increase.
The company's success has been attributed to advancements in the Internet of Things (IoT) and Automotive sectors, with AI-related revenue now constituting approximately 70% of the total revenue. Analysts are predicting a 15% year-over-year increase for fiscal year 2026, and Ambarella's management is confident in this growth trajectory.
Despite a decrease in the auto revenue funnel from $2.4 billion to $2.2 billion, due to project delays or cancellations, Ambarella is actively pursuing additional contracts for its AI System on Chips (SoCs). The company provided a midpoint revenue guidance of $78.0 million for the fourth quarter of fiscal year 2025, with a forecast of 22-24% revenue growth for fiscal 2025, expecting this growth to continue into fiscal 2026.
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