Mobileye Global (NASDAQ:MBLY) Shares Gap Down - Here's Why

Mobileye Global Inc. (NASDAQ:MBLY) experienced a notable decline in its share price before the market opening on Friday. The stock closed the previous day at $12.29 but opened lower at $11.79. As trading progressed, shares were last seen at $12.09, with a total trading volume of 676,807 shares.

Analysts Adjust Their Ratings

Several research analysts have recently provided updates regarding Mobileye Global's stock. On August 5th, Daiwa America changed its recommendation for Mobileye from a "strong-buy" to a "hold" rating. That same day, Barclays reduced their price target from $40.00 to $27.00, maintaining an "overweight" rating. Mizuho also downgraded Mobileye Global from "outperform" to "neutral" and adjusted their price target from $30.00 to $13.00. On September 10th, Deutsche Bank reaffirmed a "hold" rating with a price target of $15.00. Additionally, the Royal Bank of Canada lowered its price target from $34.00 to $24.00 while keeping an "outperform" rating. Overall, four analysts rated the stock as a sell, ten as a hold, eleven as a buy, and one as a strong buy. According to MarketBeat.com, Mobileye Global holds an average rating of "Hold" with a price target of approximately $26.85.

Mobileye Global Trades Higher

Recently, Mobileye Global's stock saw a 4.5% increase. The company has a 50-day simple moving average of $13.41 and a 200-day simple moving average of $22.92. It currently boasts a market capitalization of $10.39 billion with a price-to-earnings (P/E) ratio of -43.89 and a beta of 0.08.

Recent Earnings Report

Mobileye Global announced its earnings on August 1st, reporting earnings per share of $0.09, surpassing analysts' expectations of $0.08 by $0.01. The company generated revenue of $439.00 million, which was higher than the forecasted $424.34 million. However, compared to the same quarter last year, the revenue decreased by 3.3%, down from $0.11 earnings per share last year. Analysts anticipate an average earnings per share of -$0.06 for the current fiscal year.

Insider Transactions

In a move that caught attention, CEO Amnon Shashua purchased 631,963 shares of Mobileye Global on August 2nd, at an average price of $16.51 per share, totaling approximately $10.43 million. This brought his total holdings to 4,080,097 shares valued at around $67.36 million, representing no change in percentage terms. The transaction was officially disclosed in a filing to the Securities and Exchange Commission. Additionally, Director Patrick P. Gelsinger acquired 6,400 shares on August 5th at an average price of $15.48 per share, amounting to about $99,072. After this purchase, he holds approximately 139,106 shares valued at nearly $2.15 million. Insiders own about 1.80% of the company’s stock.

Institutional Investments

A variety of institutional investors have amended their positions in Mobileye Global recently. Baillie Gifford & Co. increased its stake by 89.8% in the first quarter, now owning 15,985,212 shares worth approximately $513.93 million after adding 7,560,929 shares over the last quarter. The Manufacturers Life Insurance Company also expanded its holdings by 807.3% in the second quarter and now owns 9,073,601 shares valued at about $254.83 million after acquiring an additional 8,073,552 shares. Wellington Management Group LLP added 200.3% to its stake in the fourth quarter, now holding 3,398,211 shares worth roughly $147.21 million. DAVENPORT & Co LLC grew its position by 20.9% in the first quarter, while Bank of New York Mellon Corp increased its stake by 4.2% in the second quarter. Overall, institutional investors own approximately 13.25% of Mobileye Global's stock.

Overview of Mobileye Global

Mobileye Global Inc. specializes in creating and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies worldwide. The company operates through its Mobileye and Other segments, offering various products, including Driver Assist, providing real-time detection of hazards on the road; Cloud-Enhanced Driver Assist, for immediate scene interpretation; and the Mobileye SuperVision solutions that enhance navigation and assistive driving capabilities.

Should You Consider Investing?

Before making any investment decisions regarding Mobileye Global, it’s important to weigh the latest insights from analysts and market trends. While the stock is currently rated as a "Hold," numerous analysts highlight other stocks that show more potential for investment. Investors are encouraged to conduct thorough research and analysis before taking any action on their portfolios.

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