Rambus (NASDAQ:RMBS) Shares Gap Up – Here’s What Happened

Rambus, Inc. (NASDAQ:RMBS) shares gapped up prior to trading on Thursday . The stock had previously closed at $125.93, but opened at $133.00. Rambus shares last traded at $125.2920, with a volume of 1,924,352 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RMBS shares. Weiss Ratings cut Rambus from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 12th. Rosenblatt Securities restated a “buy” rating and set a $130.00 target price on shares of Rambus in a report on Tuesday, October 28th. Cfra Research lowered shares of Rambus from a “hold” rating to a “moderate sell” rating in a research note on Monday, December 15th. Wells Fargo & Company upped their price target on shares of Rambus from $73.00 to $115.00 and gave the company an “overweight” rating in a report on Tuesday, October 28th. Finally, Evercore ISI raised their price objective on shares of Rambus from $114.00 to $126.00 and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $108.14.

Rambus Stock Down 7.6%

The firm has a market cap of $12.41 billion, a price-to-earnings ratio of 54.65 and a beta of 1.51. The company’s fifty day moving average is $97.73 and its 200 day moving average is $90.15.

Rambus (NASDAQ:RMBS) last posted its quarterly earnings results on Monday, October 27th. The semiconductor company reported $0.44 earnings per share for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.18). Rambus had a net margin of 33.72% and a return on equity of 17.73%. The company had revenue of $178.51 million during the quarter, compared to the consensus estimate of $175.60 million. During the same quarter in the prior year, the business earned $0.45 earnings per share. The firm’s revenue for the quarter was up 22.7% compared to the same quarter last year. On average, equities research analysts forecast that Rambus, Inc. will post 1.89 EPS for the current fiscal year.

Insider Transactions at Rambus

In other news, Director Eric B. Stang sold 4,000 shares of the stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $111.78, for a total value of $447,120.00. Following the transaction, the director directly owned 20,394 shares of the company’s stock, valued at $2,279,641.32. This represents a 16.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rambus

Institutional investors and hedge funds have recently modified their holdings of the business. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Rambus in the third quarter valued at approximately $25,000. True Wealth Design LLC increased its stake in Rambus by 162.5% during the 2nd quarter. True Wealth Design LLC now owns 420 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 260 shares during the period. Abound Wealth Management bought a new position in Rambus during the 3rd quarter worth $28,000. Spire Wealth Management raised its holdings in Rambus by 199.0% in the 4th quarter. Spire Wealth Management now owns 302 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 201 shares in the last quarter. Finally, Bessemer Group Inc. lifted its position in shares of Rambus by 105.8% during the 2nd quarter. Bessemer Group Inc. now owns 463 shares of the semiconductor company’s stock valued at $30,000 after acquiring an additional 238 shares during the period. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Rambus Company Profile

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.