Bessemer Group Inc. Buys 946,177 Shares of Rambus, Inc. $RMBS

Key Points

• Bessemer Group Inc. sharply increased its Rambus stake in Q1, buying 946,177 shares and lifting its holdings to 1,039,905 shares, worth about $89.5 million.
• Rambus reported better-than-expected quarterly results, with EPS of $0.63 versus estimates of $0.61 and revenue of $180.19 million, just above consensus forecasts.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $134.75, even as some insiders recently sold shares.

Bessemer Group Inc. grew its stake in Rambus, Inc. (NASDAQ:RMBS - Free Report) by 1,009.5% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,039,905 shares of the semiconductor company's stock after purchasing an additional 946,177 shares during the quarter. Bessemer Group Inc. owned approximately 0.96% of Rambus worth $89,463,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of RMBS. Krilogy Financial LLC boosted its holdings in Rambus by 3.8% during the 1st quarter. Krilogy Financial LLC now owns 2,238 shares of the semiconductor company's stock worth $193,000 after acquiring an additional 81 shares during the last quarter. Oak Grove Capital LLC lifted its position in shares of Rambus by 1.3% during the 4th quarter. Oak Grove Capital LLC now owns 7,600 shares of the semiconductor company's stock worth $698,000 after buying an additional 100 shares in the last quarter. Northwestern Mutual Investment Management Company LLC boosted its stake in shares of Rambus by 0.4% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 24,085 shares of the semiconductor company's stock worth $2,213,000 after buying an additional 103 shares during the last quarter. Ashton Thomas Private Wealth LLC grew its holdings in shares of Rambus by 3.3% in the fourth quarter. Ashton Thomas Private Wealth LLC now owns 3,445 shares of the semiconductor company's stock valued at $317,000 after acquiring an additional 110 shares in the last quarter. Finally, Meeder Advisory Services Inc. grew its holdings in shares of Rambus by 3.0% in the fourth quarter. Meeder Advisory Services Inc. now owns 3,883 shares of the semiconductor company's stock valued at $357,000 after acquiring an additional 114 shares in the last quarter. Hedge funds and other institutional investors own 88.54% of the company's stock.

Rambus Price Performance

NASDAQ:RMBS opened at $101.44 on Friday. Rambus, Inc. has a 1 year low of $62.81 and a 1 year high of $174.10. The stock's fifty day moving average price is $131.72 and its two-hundred day moving average price is $114.01. The company has a market cap of $10.97 billion, a P/E ratio of 48.30 and a beta of 1.84.

Rambus (NASDAQ:RMBS - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The semiconductor company reported $0.63 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.02. The business had revenue of $180.19 million for the quarter, compared to analysts' expectations of $179.94 million. Rambus had a return on equity of 17.41% and a net margin of 31.90%. On average, analysts expect that Rambus, Inc. will post 2.44 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RMBS. Weiss Ratings restated a "hold (c+)" rating on shares of Rambus in a research note on Friday, June 5th. Evercore restated an "outperform" rating and set a $172.00 price target on shares of Rambus in a research report on Tuesday, April 28th. Rosenblatt Securities raised their price objective on shares of Rambus from $130.00 to $150.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. Robert W. Baird downgraded shares of Rambus from an "outperform" rating to a "neutral" rating and set a $120.00 target price for the company. in a research report on Tuesday, April 28th. Finally, Jefferies Financial Group raised their price target on shares of Rambus from $120.00 to $145.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $134.75.

Insider Transactions at Rambus

In other Rambus news, EVP Xianzhi Sean Fan sold 37,914 shares of Rambus stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $151.69, for a total transaction of $5,751,174.66. Following the completion of the sale, the executive vice president owned 168,358 shares of the company's stock, valued at $25,538,225.02. The trade was a 18.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Meera Rao sold 2,972 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $150.30, for a total transaction of $446,691.60. Following the transaction, the director owned 19,974 shares in the company, valued at $3,002,092.20. The trade was a 12.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 65,886 shares of company stock valued at $10,171,466. Corporate insiders own 0.75% of the company's stock.

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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