Rambus (NASDAQ:RMBS) Shares Up 7.8% – Here’s Why

Shares of Rambus, Inc. (NASDAQ:RMBS) rose 7.8% during trading on Friday . The stock traded as high as $97.96 and last traded at $99.0960. Approximately 95,804 shares were traded during trading, a decline of 92% from the average daily volume of 1,192,451 shares. The stock had previously closed at $91.89.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Jefferies Financial Group raised shares of Rambus to a “strong-buy” rating in a research report on Tuesday, October 28th. Cfra Research cut Rambus from a “hold” rating to a “moderate sell” rating in a report on Monday, December 15th. Wells Fargo & Company boosted their price target on Rambus from $73.00 to $115.00 and gave the company an “overweight” rating in a report on Tuesday, October 28th. Evercore ISI upped their price objective on Rambus from $114.00 to $126.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 28th. Finally, Susquehanna set a $100.00 price objective on Rambus and gave the stock a “neutral” rating in a report on Monday, October 6th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Rambus presently has a consensus rating of “Buy” and a consensus price target of $108.14.

Rambus Trading Up 6.9%

The firm’s 50 day moving average price is $98.22 and its two-hundred day moving average price is $85.61. The company has a market capitalization of $10.58 billion, a price-to-earnings ratio of 46.57 and a beta of 1.51.

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). The business had revenue of $178.51 million during the quarter, compared to the consensus estimate of $175.60 million. Rambus had a net margin of 33.72% and a return on equity of 17.73%. The firm’s revenue was up 22.7% on a year-over-year basis. During the same quarter last year, the company posted $0.45 EPS. As a group, equities research analysts predict that Rambus, Inc. will post 1.89 EPS for the current year.

Insider Activity

In other news, Director Eric B. Stang sold 4,000 shares of the company’s stock in a transaction on Monday, November 10th. The stock was sold at an average price of $111.78, for a total transaction of $447,120.00. Following the completion of the sale, the director directly owned 20,394 shares in the company, valued at approximately $2,279,641.32. This represents a 16.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Rambus

A number of hedge funds have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Rambus by 16.3% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 5,819 shares of the semiconductor company’s stock valued at $301,000 after purchasing an additional 815 shares in the last quarter. Ieq Capital LLC bought a new position in Rambus in the 1st quarter valued at approximately $543,000. State of Wyoming acquired a new stake in Rambus during the 1st quarter worth approximately $55,000. Focus Partners Advisor Solutions LLC acquired a new stake in Rambus during the 1st quarter worth approximately $268,000. Finally, EdgePoint Investment Group Inc. bought a new stake in Rambus during the 1st quarter worth approximately $60,535,000. 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.