Investors have great interest in Ambarella Inc. (AMBA), CrowdStrike Holdings Inc. (CRWD)

Ambarella Inc. (NASDAQ: AMBA) shares are -4.69% down in the year-to-date (YTD) period and have moved 9.53% or $5.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +60.24% lower. Comparatively, the stock is -21.57% down YTD and 8.92% over the trailing 3-month period. If we look at the shorter duration, its week performance is 11.60% and 25.72% over the month.

Analyst Recommendations

On June 23, 2020, Rosenblatt recommended the AMBA stock is a Buy, while earlier, Needham had Upgrade the stock as a Buy on July 07, 2020. 14 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the AMBA stock is a “Moderate Buy. 0 of the 14 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 7 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $57.72 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $59.83. The forecasts give the Ambarella Inc. stock a price target range of $79.00 on the higher side while at least one analyst think the stock could plunge to a low of $50.00. The two limits represent an upside potential of 26.94% or -15.44%.

Earnings Forecast

Analysts estimate the earnings to increase 500.00% in the current quarter to -$0.02, down from the $0.21 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.06, down -6.90% from $0.69 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.02 and $0.11. Wall Street estimates earnings per share to be at an average of $0.38 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 61 over the last 12 months, while SEC filings reveal that there have been 77 insider sales over the same period. Insiders have purchases 342,071 shares while those sold by company executives and officers stand at 228,259. The last 3 months have seen insiders trade a total of 47,566 and 45,432 in purchases and sales respectively.

Meng Teresa H, a Director at the company, sold 429 shares worth $22415.0 at $52.25 per share on Jun 17. The VP, Marketing had earlier sold another 1,267 AMBA shares valued at $58175.0 on Jun 30. The shares were sold at $45.92 per share. EICHLER KEVIN C (CFO) sold 3,101 shares at $52.13 per share on Jun 16 for a total of $0.16 million while Wang Feng-Ming, (CEO) sold 5,342 shares on Jun 16 for $0.28 million with each share fetching $52.13.

CrowdStrike Holdings Inc. (NASDAQ:CRWD), on the other hand, is trading around $143.69 with a market cap of $30.64B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $112.67 and spell out a less modest performance – a -27.53% return. Some analysts are even forecasting -$0.04 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the CrowdStrike Holdings Inc. (CRWD) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CRWD’s operating margin was negative on the trailing 12 months basis, remaining steady at -25.40%, while the operating expenses over the recent quarter were at $154.65 million. This represented a 13.15% of the company’s total revenues which amounted $178.08 million. With this in place, we can see that the company’s diluted EPS declined -$0.09 on the year-over-year period, shrinking to -$0.55 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $1.52 billion from $1.4 billion over the previous quarter. The cash flow from operating activities totaled $98.58 million, significantly higher than the $1.42 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $88.88 million.

Insider activity

Insiders have transacted a total of 514 times at CrowdStrike Holdings Inc. over the last 6 months, with insider purchases undertaken 180 times and accounting for 54,588,472 shares. Insider sales totaled 53,279,186 shares over the same period, with these deals completed in 334 transactions. Looking at these numbers, we realize that net purchases over that period are -154.0 shares. Insiders now hold a total of 2.89M shares after the latest sales, with -107.20% net shares purchased.

Major holders

Insiders own 0.90% of the company shares, while shares held by institutions stand at 90.80% with a share float percentage of 148.85M. Investors are also buoyed by the number of investors in a company, with CrowdStrike Holdings Inc. having a total of 351 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 12.62 million shares worth more than $1.27 billion. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 8.40% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 11.26 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $1.13 billion and represent 7.50% of shares outstanding.