BlackRock Inc. Purchases New Holdings in Rambus, Inc. $RMBS

Key Points

• BlackRock acquired 13.96 million Rambus shares in the second quarter, valued at approximately $1.85 billion and representing about 12.88% of the company. Institutional investors collectively own 88.54% of Rambus.
• Rambus reported quarterly EPS of $0.77, beating estimates by $0.05, while revenue rose 20.4% year over year to $207.39 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $139.78.
• Rambus shares opened at $90.85, well below their 52-week high of $174.10. Meanwhile, company insiders sold 62,914 shares worth roughly $9.7 million during the latest quarter.

BlackRock Inc. bought a new position in shares of Rambus, Inc. (NASDAQ:RMBS - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 13,964,477 shares of the semiconductor company's stock, valued at approximately $1,853,645,000. BlackRock Inc. owned about 12.88% of Rambus as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Invesco Ltd. raised its position in shares of Rambus by 70.6% in the fourth quarter. Invesco Ltd. now owns 4,148,653 shares of the semiconductor company's stock valued at $381,220,000 after purchasing an additional 1,716,621 shares during the period. Norges Bank bought a new position in shares of Rambus during the fourth quarter worth approximately $156,356,000. Bank of America Corp DE raised its position in shares of Rambus by 196.0% in the third quarter. Bank of America Corp DE now owns 1,550,665 shares of the semiconductor company's stock valued at $161,579,000 after buying an additional 1,026,776 shares in the last quarter. Bessemer Group Inc. raised its position in shares of Rambus by 1,009.5% in the first quarter. Bessemer Group Inc. now owns 1,039,905 shares of the semiconductor company's stock valued at $89,463,000 after buying an additional 946,177 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Rambus in the second quarter valued at approximately $109,940,000. Institutional investors own 88.54% of the company's stock.

Insider Transactions at Rambus

In related news, EVP Xianzhi Sean Fan sold 37,914 shares of the business's stock in a transaction on 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 sale, the executive vice president owned 168,358 shares in the company, valued at $25,538,225.02. The trade was a 18.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Necip Sayiner sold 5,000 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $170.15, for a total value of $850,750.00. Following the completion of the transaction, the director owned 18,223 shares of the company's stock, valued at $3,100,643.45. This represents a 21.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 62,914 shares of company stock worth $9,724,775. 0.75% of the stock is currently owned by insiders.

Rambus Price Performance

Shares of NASDAQ:RMBS opened at $90.85 on Thursday. The company has a market cap of $9.85 billion, a price-to-earnings ratio of 41.67 and a beta of 1.88. The firm has a 50 day simple moving average of $110.23 and a 200 day simple moving average of $112.87. Rambus, Inc. has a one year low of $67.15 and a one year high of $174.10.

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

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Glj Research set a $165.00 price objective on Rambus in a research note on Tuesday, July 28th. Evercore reaffirmed an "outperform" rating and set a $172.00 price target on shares of Rambus in a report on Tuesday, April 28th. Rosenblatt Securities reiterated a "buy" rating and set a $165.00 price target on shares of Rambus in a research report on Tuesday, July 28th. Jefferies Financial Group lifted their price objective on shares of Rambus from $120.00 to $145.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Rambus in a research note on Friday, June 5th. One equities research 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 data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $139.78.

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.

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