Capstone Capital Management Ltd Acquires Shares of 23,326 Rambus, Inc. $RMBS

Key Points

• Capstone Capital Management opened a new position in Rambus during the first quarter, buying 23,326 shares valued at about $2.0 million. The stake represents roughly 2.0% of its portfolio and is now its 15th-largest holding.
• Rambus reported better-than-expected quarterly results, with EPS of $0.63 versus the $0.61 estimate and revenue of $180.19 million slightly topping forecasts. Analysts now expect the company to earn $2.44 per share this year.
• Sentiment on the stock remains mixed: several firms raised price targets, but one analyst downgraded the shares, leaving Rambus with a Moderate Buy consensus and an average target of $130.43. Meanwhile, insiders sold shares over the last 90 days, including director sales by Meera Rao and Necip Sayiner.

Capstone Capital Management Ltd acquired a new position in Rambus, Inc. (NASDAQ:RMBS - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 23,326 shares of the semiconductor company's stock, valued at approximately $2,007,000. Rambus makes up about 2.0% of Capstone Capital Management Ltd's investment portfolio, making the stock its 15th biggest position.

Other large investors also recently made changes to their positions in the company. Acumen Wealth Advisors LLC bought a new position in shares of Rambus in the fourth quarter valued at about $25,000. Torren Management LLC bought a new stake in Rambus during the 4th quarter worth about $26,000. 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 worth $28,000 after acquiring an additional 201 shares during the last quarter. University of Texas Texas AM Investment Management Co. acquired a new stake in Rambus in the 4th quarter valued at about $28,000. Finally, IFP Advisors Inc increased its position in Rambus by 126.7% in the 3rd quarter. IFP Advisors Inc now owns 442 shares of the semiconductor company's stock valued at $47,000 after acquiring an additional 247 shares in the last quarter. Institutional investors own 88.54% of the company's stock.

Rambus Price Performance

Shares of RMBS stock opened at $109.64 on Thursday. The stock has a market cap of $11.86 billion, a PE ratio of 52.21 and a beta of 1.84. The stock has a 50-day moving average of $133.76 and a 200-day moving average of $113.60. Rambus, Inc. has a one year low of $61.16 and a one year high of $174.10.

Rambus (NASDAQ:RMBS - Get Free Report) last announced its quarterly earnings results on Monday, April 27th. The semiconductor company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.02. The company had revenue of $180.19 million during the quarter, compared to analyst estimates of $179.94 million. Rambus had a net margin of 31.90% and a return on equity of 17.41%. As a group, research analysts anticipate that Rambus, Inc. will post 2.44 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on RMBS shares. Jefferies Financial Group upped their target price on shares of Rambus from $120.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, April 28th. Evercore reissued an "outperform" rating and issued a $172.00 price target on shares of Rambus in a report on Tuesday, April 28th. Rosenblatt Securities boosted their price objective on shares of Rambus from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Tuesday, April 28th. Robert W. Baird downgraded Rambus from an "outperform" rating to a "neutral" rating and set a $120.00 price objective on the stock. in a report on Tuesday, April 28th. Finally, Wells Fargo & Company upped their price objective on Rambus from $115.00 to $145.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $130.43.

Insiders Place Their Bets

In related news, Director Meera Rao sold 2,972 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $150.30, for a total value of $446,691.60. Following the completion of the transaction, the director directly owned 19,974 shares of the company's stock, valued at approximately $3,002,092.20. This represents a 12.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Necip Sayiner sold 5,000 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was 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 of the company's stock, valued at approximately $3,100,643.45. This trade represents a 21.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 74,424 shares of company stock worth $11,179,633 in the last ninety days. 0.75% of the stock is owned by insiders.

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.

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