EdgePoint Investment Group Inc. Buys 541,056 Shares of Rambus, Inc. $RMBS

Key Points

• EdgePoint Investment Group increased its Rambus stake by 38.5%, purchasing 541,056 additional shares to hold 1.95 million shares worth approximately $167.6 million, or 1.8% of the company.
• Rambus reported quarterly EPS of $0.63, exceeding the $0.61 analyst consensus, while revenue of $180.19 million was roughly in line with expectations. Institutional investors own 88.54% of the stock.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $134.75, although insiders sold 62,914 shares valued at about $9.7 million during the latest quarter.

EdgePoint Investment Group Inc. grew its position in shares of Rambus, Inc. (NASDAQ:RMBS - Free Report) by 38.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,947,742 shares of the semiconductor company's stock after buying an additional 541,056 shares during the period. Rambus accounts for 1.3% of EdgePoint Investment Group Inc.'s investment portfolio, making the stock its 20th largest position. EdgePoint Investment Group Inc. owned about 1.80% of Rambus worth $167,564,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Krilogy Financial LLC grew 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 valued at $193,000 after buying an additional 81 shares in the last quarter. Oak Grove Capital LLC raised its position in shares of Rambus by 1.3% in the fourth 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 raised its position in shares of Rambus by 0.4% in the fourth 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 in the last quarter. Balefire LLC boosted its stake in Rambus by 3.8% during the first quarter. Balefire LLC now owns 2,932 shares of the semiconductor company's stock valued at $252,000 after buying an additional 108 shares during the period. Finally, Ashton Thomas Private Wealth LLC boosted its stake in Rambus by 3.3% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 3,445 shares of the semiconductor company's stock valued at $317,000 after buying an additional 110 shares during the period. 88.54% of the stock is owned by institutional investors.

Rambus Price Performance

Shares of NASDAQ RMBS opened at $96.42 on Tuesday. The stock has a market capitalization of $10.43 billion, a P/E ratio of 45.91 and a beta of 1.84. Rambus, Inc. has a one year low of $63.30 and a one year high of $174.10. The firm's 50 day simple moving average is $128.23 and its two-hundred day simple moving average is $114.40.

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

Insider Activity

In other Rambus news, Director Eric B. Stang sold 5,000 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $146.00, for a total transaction of $730,000.00. Following the completion of the sale, the director owned 19,218 shares of the company's stock, valued at $2,805,828. This represents a 20.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Necip Sayiner sold 5,000 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $170.15, for a total transaction of $850,750.00. Following the transaction, the director directly 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 62,914 shares of company stock valued at $9,724,775. 0.75% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts have weighed in on RMBS shares. Evercore restated an "outperform" rating and issued a $172.00 target price on shares of Rambus in a research note on Tuesday, April 28th. Rosenblatt Securities lifted their price target on Rambus from $130.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, April 28th. Jefferies Financial Group boosted their price objective on Rambus from $120.00 to $145.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. Wells Fargo & Company upped their price objective on shares of Rambus from $115.00 to $145.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Finally, Benchmark assumed coverage on shares of Rambus in a research note on Wednesday, July 15th. They issued a "buy" rating and a $165.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Rambus has an average rating of "Moderate Buy" and an average target price of $134.75.

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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