Rambus (NASDAQ:RMBS) Shares Gap Up – What’s Next?

Rambus, Inc. (NASDAQ:RMBS) gapped up before the market opened on Friday . The stock had previously closed at $138.50, but opened at $149.67. Rambus shares last traded at $148.7690, with a volume of 406,423 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Zacks Research upgraded Rambus to a “hold” rating in a report on Monday, January 26th. Evercore lowered their price target on Rambus from $126.00 to $119.00 and set an “outperform” rating on the stock in a report on Tuesday, February 3rd. Susquehanna dropped their price target on shares of Rambus from $100.00 to $90.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 3rd. Rosenblatt Securities restated a “buy” rating and issued a $130.00 price objective on shares of Rambus in a research note on Tuesday, February 3rd. Finally, Weiss Ratings downgraded shares of Rambus from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, March 10th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $105.71.

Rambus Price Performance

The firm has a market capitalization of $17.13 billion, a P/E ratio of 75.07 and a beta of 1.63. The business has a 50 day moving average price of $101.69 and a 200 day moving average price of $100.95.

Rambus (NASDAQ:RMBS) last posted its quarterly earnings data on Monday, February 2nd. The semiconductor company reported $0.68 earnings per share for the quarter, meeting the consensus estimate of $0.68. The company had revenue of $190.24 million during the quarter, compared to analysts’ expectations of $188.21 million. Rambus had a return on equity of 17.69% and a net margin of 32.57%. As a group, equities analysts expect that Rambus, Inc. will post 2.49 EPS for the current year.

Insider Activity at Rambus

In other Rambus news, Director Meera Rao sold 8,538 shares of the firm’s stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $118.08, for a total value of $1,008,167.04. Following the completion of the sale, the director owned 22,946 shares in the company, valued at approximately $2,709,463.68. This trade represents a 27.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Luc Seraphin sold 39,914 shares of Rambus stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $98.63, for a total value of $3,936,717.82. Following the sale, the chief executive officer directly owned 331,070 shares in the company, valued at $32,653,434.10. The trade was a 10.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 58,151 shares of company stock worth $5,848,885 over the last three months. Company insiders own 0.75% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RMBS. Steigerwald Gordon & Koch Inc. acquired a new stake in Rambus during the third quarter worth $25,000. Acumen Wealth Advisors LLC acquired a new position in shares of Rambus in the 4th quarter valued at $25,000. Torren Management LLC acquired a new position in shares of Rambus in the 4th quarter valued at $26,000. Spire Wealth Management lifted its holdings in shares of Rambus by 199.0% during the 4th quarter. Spire Wealth Management now owns 302 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 201 shares during the period. Finally, University of Texas Texas AM Investment Management Co. bought a new position in shares of Rambus during the 4th quarter worth about $28,000. 88.54% of the stock is currently owned by institutional investors and hedge funds.

About Rambus

Rambus Inc is a technology licensing company specializing in semiconductor and system-level interface solutions. Founded in 1990 by Stanford University researchers Mike Farmwald and Mark Horowitz, Rambus established its headquarters in Sunnyvale, California. The company initially gained prominence by developing high-speed DRAM interface technology and securing a broad patent portfolio covering memory architecture, data signaling and power management innovations.

Today, Rambus licenses its proprietary intellectual property (IP) to semiconductor companies, original equipment manufacturers (OEMs) and system integrators worldwide.