Even Short Sellers Think Ambarella Will Move Higher
Karl Loomes, market analyst at SunGard's Astec Analytics, said short sellers are not expecting shares of Ambarella Inc (NASDAQ: AMBA) to fall any time soon, according to Astec data. Borrowing volumes, Loomes pointed out, have declined 43 percent since mid-February.
"When we see the securities lending numbers going in this direction at the same time as a positive price move," he said, "it consistently points to the short side not expecting prices to fall any time soon."
However, Loomes did caution that Ambarella's cost of borrowing "is still fairly high by comparison" at 17 percent per annum. That is double the cost at the start of 2015. The higher cost suggests that "at least some short sellers are trying to get a hold of the stock," Loomes concluded.
Ambarella recently traded at $74.00; shares are up 47 percent on the year.
The stock moved higher as Xiaomi announced its GoPro Inc (NASDAQ: GPRO) competitor would use Ambarella's solution.
Latest Ratings for AMBA
|Sep 2016||Roth Capital||Initiates Coverage on||Buy|
|Jun 2016||Deutsche Bank||Maintains||Hold|
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