Rambus (NASDAQ:RMBS) Shares Down 5.2% – Here’s Why

Rambus, Inc. (NASDAQ:RMBS)’s stock price dropped 5.2% during mid-day trading on Friday . The company traded as low as $115.98 and last traded at $118.3070. Approximately 604,819 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 2,153,190 shares. The stock had previously closed at $124.77.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on RMBS. Susquehanna set a $100.00 price objective on shares of Rambus and gave the company a “neutral” rating in a research report on Monday, October 6th. Cfra Research cut shares of Rambus from a “hold” rating to a “moderate sell” rating in a research note on Monday, December 15th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 target price on shares of Rambus in a report on Tuesday, October 28th. Evercore ISI increased their price target on shares of Rambus from $114.00 to $126.00 and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Finally, William Blair assumed coverage on shares of Rambus in a research report on Thursday. They issued an “outperform” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Rambus presently has an average rating of “Buy” and an average target price of $108.14.

Rambus Stock Down 8.0%

The stock’s fifty day simple moving average is $97.33 and its 200-day simple moving average is $89.79. The company has a market capitalization of $12.36 billion, a PE ratio of 54.27 and a beta of 1.51.

Rambus (NASDAQ:RMBS) last released 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 firm had revenue of $178.51 million during the quarter, compared to analyst estimates of $175.60 million. Rambus had a return on equity of 17.73% and a net margin of 33.72%.The business’s revenue was up 22.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.45 EPS. Analysts expect that Rambus, Inc. will post 1.89 EPS for the current year.

Insider Activity

In other news, Director Eric B. Stang sold 5,000 shares of Rambus stock in a transaction on Friday, November 7th. The stock was sold at an average price of $102.35, for a total transaction of $511,750.00. Following the completion of the transaction, the director owned 24,394 shares of the company’s stock, valued at $2,496,725.90. The trade was a 17.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rambus

Hedge funds have recently added to or reduced their stakes in the business. Steigerwald Gordon & Koch Inc. purchased a new stake in shares of Rambus in the third quarter valued at about $25,000. True Wealth Design LLC raised its position in shares of 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 purchasing an additional 260 shares during the last quarter. Abound Wealth Management purchased a new stake in Rambus in the 3rd quarter valued at approximately $28,000. Spire Wealth Management grew its holdings in Rambus by 199.0% during the 4th quarter. Spire Wealth Management now owns 302 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 201 shares during the last quarter. Finally, Bessemer Group Inc. grew its holdings in 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 buying an additional 238 shares during the last quarter. 88.54% of the stock is currently owned by hedge funds and other institutional investors.

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.