Primecap Management Co. CA Buys Shares of 47,500 Rambus, Inc. $RMBS

Key Points

• Primecap Management initiated a Rambus position by purchasing 47,500 shares valued at approximately $6.3 million. Institutional investors collectively own 88.54% of the company.
• Rambus exceeded quarterly expectations, reporting $0.77 in earnings per share versus a $0.72 consensus estimate and revenue of $207.39 million, up 20.4% year over year.
• Analysts maintain a “Moderate Buy” consensus rating with a $139.78 average price target, although company directors sold 20,000 shares worth roughly $3.19 million over the past 90 days.

Primecap Management Co. CA bought a new position in Rambus, Inc. (NASDAQ:RMBS - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 47,500 shares of the semiconductor company's stock, valued at approximately $6,305,000.

A number of other large investors have also made changes to their positions in the company. Acumen Wealth Advisors LLC bought a new position in shares of Rambus in the 4th quarter worth approximately $25,000. Torren Management LLC bought a new stake in Rambus during the fourth quarter valued at approximately $26,000. Danske Bank A S bought a new stake in Rambus during the second quarter valued at approximately $27,000. University of Texas Texas AM Investment Management Co. bought a new stake in Rambus during the fourth quarter valued at approximately $28,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Rambus during the second quarter valued at approximately $41,000. 88.54% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

RMBS has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Rambus in a report on Friday, June 5th. Glj Research set a $165.00 price target on Rambus in a report on Tuesday, July 28th. Benchmark restated a "buy" rating on shares of Rambus in a research report on Tuesday, July 28th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $165.00 price objective on shares of Rambus in a research note on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $139.78.

Rambus Price Performance

Shares of RMBS stock opened at $90.03 on Thursday. The company has a market capitalization of $9.76 billion, a price-to-earnings ratio of 41.30 and a beta of 1.88. Rambus, Inc. has a one year low of $70.90 and a one year high of $174.10. The company's fifty day moving average price is $105.30 and its 200-day moving average price is $112.34.

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

Insider Activity

In other news, Director Eric B. Stang sold 5,000 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $146.00, for a total value of $730,000.00. Following the transaction, the director directly owned 19,218 shares in the company, valued at $2,805,828. The trade was a 20.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Emiko Higashi sold 10,000 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $160.50, for a total value of $1,605,000.00. Following the completion of the transaction, the director directly owned 49,519 shares of the company's stock, valued at approximately $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 have sold 20,000 shares of company stock worth $3,185,750 over the last ninety days. Corporate insiders own 0.75% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source