Ambarella Stock Story

AMBA -  USA Stock  

USD 130.51  2.80  2.10%

While some millenniums are indifferent towards technology space, it makes sense to go over Ambarella in terms of its current potentials. Even if we see continued rise in the economy, Ambarella may not be as resilient as the market. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Strong fundamental drivers of the company may also suggest signals of long term gains for Ambarella investors. Ambarella is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 30th of November 2021.
Published over a month ago
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Will Ambarella (NASDAQ:AMBA) price continue to rise in December?
The company's average rating is Buy from 10 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Ambarella market sentiment investors' perception of the future value of Ambarella. Let us look at a few aspects of Ambarella technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Ambarella. In general, we focus on analyzing Ambarella stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Ambarella's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Ambarella's intrinsic value. In addition to deriving basic predictive indicators for Ambarella, we also check how macroeconomic factors affect Ambarella price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Ambarella's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Ambarella in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ambarella. Your research has to be compared to or analyzed against Ambarella's peers to derive any actionable benefits. When done correctly, Ambarella's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Ambarella.

How important is Ambarella's Liquidity

Ambarella financial leverage refers to using borrowed capital as a funding source to finance Ambarella ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ambarella financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ambarella's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Ambarella, but it might be worth checking our own buy vs. sell analysis

Sale by Ju Chihong of 536 shares of Ambarella

Legal trades by Ambarella insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ambarella insider trading alert for sale of ordinary shares by Ju Chihong, Sr. Vice President Systems, on 3rd of January 2022. This event was filed by Ambarella Inc with SEC on 2022-01-03. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Ambarella Standard Deviation

Ambarella has current Standard Deviation of 4.6. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
=  
SQRT(V) 
 = 
4.6
SQRT = Square root notation
V =   Variance of Ambarella returns
Let's now compare Ambarella Standard Deviation to its closest peers:
AMBA
ACLS
ACMR
AEHR
AMBA4.601904566934051
ACLS2.35
ACMR3.94
AEHR8.37

Our perspective of the current Ambarella rise

Current variance is at 21.18.
As of the 29th of November, Ambarella shows the risk adjusted performance of 0.1598, and Mean Deviation of 2.81. Ambarella technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen technical drivers for Ambarella, which can be compared to its rivals. Please confirm Ambarella mean deviation, standard deviation, treynor ratio, as well as the relationship between the downside deviation and information ratio to decide if Ambarella is priced correctly, providing market reflects its regular price of 189.82 per share. Given that Ambarella has jensen alpha of 0.9826, we suggest you to validate Ambarella's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas other companies within the semiconductor equipment & materials industry are still a little expensive, even after the recent corrections, Ambarella may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to short Ambarella as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ambarella.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ambarella. Please refer to our Terms of Use for any information regarding our disclosure principles.

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