Ambarella Inc (AMBA): Today's Featured Technology Laggard

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Ambarella ( AMBA) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Ambarella fell $0.84 (-2.8%) to $29.54 on average volume. Throughout the day, 1,105,426 shares of Ambarella exchanged hands as compared to its average daily volume of 1,315,400 shares. The stock ranged in price between $29.27-$30.78 after having opened the day at $30.50 as compared to the previous trading day's close of $30.38. Other companies within the Technology sector that declined today were: Alliance Fiber Optic Products ( AFOP), down 22.4%, Kingtone Wirelessinfo Solution ( KONE), down 19.0%, Peregrine Semiconductor ( PSMI), down 16.1% and Park City Group ( PCYG), down 10.8%.

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display. Ambarella has a market cap of $903.7 million and is part of the electronics industry. The company has a P/E ratio of 41.6, above the S&P 500 P/E ratio of 17.7. Shares are down 5.5% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Ambarella a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Ambarella as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, ATMI ( ATMI), up 25.5%, Alvarion ( ALVR), up 17.5%, Plug Power ( PLUG), up 15.1% and Integrated Device Technology ( IDTI), up 12.7% , were all gainers within the technology sector with Hewlett-Packard ( HPQ) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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