Bank of New York Mellon Corp Makes New $109.94 Million Investment in Rambus, Inc. $RMBS

Key Points

• Bank of New York Mellon purchased 828,233 Rambus shares worth approximately $109.94 million, giving it a 0.76% stake. Institutional investors collectively own 88.54% of the company.
• Analysts remain generally bullish, with a consensus “Moderate Buy” rating and an average price target of $139.78, compared with Rambus’s opening price of $87.07.
• Rambus exceeded quarterly expectations, reporting adjusted EPS of $0.77 versus estimates of $0.72 and revenue of $207.39 million, up 20.4% year over year. Meanwhile, company directors sold a combined 15,000 shares in June.

Bank of New York Mellon Corp purchased a new stake in shares of Rambus, Inc. (NASDAQ:RMBS - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 828,233 shares of the semiconductor company's stock, valued at approximately $109,940,000. Bank of New York Mellon Corp owned approximately 0.76% of Rambus at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of the stock. NewEdge Advisors LLC raised its holdings in Rambus by 22,321.4% in the 1st quarter. NewEdge Advisors LLC now owns 9,417 shares of the semiconductor company's stock worth $488,000 after acquiring an additional 9,375 shares during the last quarter. Empowered Funds LLC boosted its stake in Rambus by 34.1% during the 1st quarter. Empowered Funds LLC now owns 22,750 shares of the semiconductor company's stock valued at $1,178,000 after purchasing an additional 5,783 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Rambus by 6.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 309,512 shares of the semiconductor company's stock worth $16,025,000 after purchasing an additional 19,120 shares in the last quarter. Acadian Asset Management LLC bought a new stake in shares of Rambus in the 1st quarter worth $218,000. Finally, Quantbot Technologies LP bought a new stake in shares of Rambus in the 2nd quarter worth $102,000. Hedge funds and other institutional investors own 88.54% of the company's stock.

Wall Street Analysts Forecast Growth

RMBS has been the topic of a number of research analyst reports. Jefferies Financial Group upped their price target on Rambus from $120.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, April 28th. Glj Research set a $165.00 target price on Rambus in a research report on Tuesday, July 28th. Wells Fargo & Company upped their target price on shares of Rambus from $115.00 to $145.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Benchmark reaffirmed a "buy" rating on shares of Rambus in a report on Tuesday, July 28th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $165.00 price target on shares of Rambus in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $139.78.

Insider Activity

In other news, Director Necip Sayiner sold 5,000 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $170.15, for a total value of $850,750.00. Following the transaction, the director owned 18,223 shares in the company, valued at $3,100,643.45. This represents a 21.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Emiko Higashi sold 10,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $160.50, for a total transaction of $1,605,000.00. Following the completion of the transaction, the director owned 49,519 shares in the company, valued at $7,947,799.50. This trade represents a 16.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 20,000 shares of company stock valued at $3,185,750 in the last quarter. 0.75% of the stock is currently owned by insiders.

Rambus Price Performance

RMBS stock opened at $87.07 on Tuesday. Rambus, Inc. has a 1 year low of $70.90 and a 1 year high of $174.10. The company has a market cap of $9.44 billion, a P/E ratio of 39.94 and a beta of 1.88. The stock's fifty day moving average price is $106.95 and its 200-day moving average price is $112.48.

Rambus (NASDAQ:RMBS - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The semiconductor company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.05. The company had revenue of $207.39 million during the quarter, compared to analysts' expectations of $199.30 million. Rambus had a return on equity of 17.89% and a net margin of 31.69%.Rambus's revenue for the quarter was up 20.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.53 earnings per share. As a group, analysts expect that Rambus, Inc. will post 2.52 earnings per share for the current year.

Rambus 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.

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