Principal Financial Group Inc. Sells 38,183 Shares of Rambus, Inc. $RMBS

Key Points

• Principal Financial Group cut its Rambus stake by 9.3% in the first quarter, selling 38,183 shares and leaving it with 373,536 shares valued at about $32.1 million.
• Rambus posted stronger-than-expected quarterly results, with EPS of $0.63 versus the $0.61 consensus and revenue of $180.19 million, while analysts still expect full-year EPS of 2.44.
• Insider selling and mixed sentiment were notable, as directors sold shares in recent weeks and analysts currently rate the stock a “Moderate Buy” with a consensus price target of $134.75.

Principal Financial Group Inc. lowered its stake in shares of Rambus, Inc. (NASDAQ:RMBS - Free Report) by 9.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 373,536 shares of the semiconductor company's stock after selling 38,183 shares during the quarter. Principal Financial Group Inc. owned approximately 0.35% of Rambus worth $32,135,000 as of its most recent SEC filing.

A number of other large investors have also bought and sold shares of the company. NewEdge Advisors LLC increased its holdings in Rambus by 22,321.4% in the 1st quarter. NewEdge Advisors LLC now owns 9,417 shares of the semiconductor company's stock worth $488,000 after acquiring an additional 9,375 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of Rambus by 34.1% in the first quarter. Empowered Funds LLC now owns 22,750 shares of the semiconductor company's stock worth $1,178,000 after acquiring an additional 5,783 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Rambus by 6.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 309,512 shares of the semiconductor company's stock worth $16,025,000 after acquiring an additional 19,120 shares during the period. Acadian Asset Management LLC purchased a new position in shares of Rambus in the first quarter valued at $218,000. Finally, Quantbot Technologies LP purchased a new position in shares of Rambus in the second quarter valued at $102,000. 88.54% of the stock is owned by hedge funds and other institutional investors.

Rambus Stock Performance

NASDAQ RMBS opened at $101.44 on Monday. Rambus, Inc. has a 52-week low of $62.81 and a 52-week high of $174.10. The company has a market capitalization of $10.97 billion, a P/E ratio of 48.30 and a beta of 1.84. The company has a fifty day moving average of $131.72 and a 200-day moving average of $114.16.

Rambus (NASDAQ:RMBS - Get Free Report) last posted 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 firm had revenue of $180.19 million during 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%. As a group, analysts forecast that Rambus, Inc. will post 2.44 EPS 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 completion of the sale, the director owned 19,218 shares of the company's stock, valued at approximately $2,805,828. The trade was a 20.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Necip Sayiner sold 5,000 shares of Rambus stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $170.15, for a total value of $850,750.00. Following the completion of the transaction, the director directly owned 18,223 shares in the company, valued at $3,100,643.45. This trade represents a 21.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 65,886 shares of company stock valued at $10,171,466. Company insiders own 0.75% of the company's stock.

Wall Street Analysts Forecast Growth

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