Rakuten Investment Management Inc. Takes $1.73 Million Position in Rambus, Inc. $RMBS

Key Points

• Rakuten Investment Management acquired 13,968 Rambus shares worth approximately $1.73 million during the second quarter. Institutional investors collectively own 88.54% of the company.
• Rambus exceeded quarterly expectations, reporting $0.77 in EPS versus the $0.72 consensus estimate and $207.39 million in revenue, up 20.4% year over year.
• Analysts maintain a generally positive outlook, with six Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $145.88, compared with the stock’s reported $85.76 opening price.

Rakuten Investment Management Inc. acquired a new position in Rambus, Inc. (NASDAQ:RMBS - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 13,968 shares of the semiconductor company's stock, valued at approximately $1,731,000.

Several other large investors have also recently modified their holdings of RMBS. BlackRock Inc. purchased a new position in Rambus in the second quarter worth $1,853,645,000. Price T Rowe Associates Inc. MD lifted its holdings in shares of Rambus by 2.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,385,570 shares of the semiconductor company's stock valued at $494,881,000 after purchasing an additional 140,226 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Rambus by 70.6% during the 4th 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 last quarter. Geode Capital Management LLC boosted its position in shares of Rambus by 3.4% in the 4th quarter. Geode Capital Management LLC now owns 2,842,715 shares of the semiconductor company's stock worth $261,256,000 after purchasing an additional 94,214 shares in the last quarter. Finally, EdgePoint Investment Group Inc. grew its stake in Rambus by 38.5% during the 1st quarter. EdgePoint Investment Group Inc. now owns 1,947,742 shares of the semiconductor company's stock worth $167,564,000 after buying an additional 541,056 shares during the last quarter. Institutional investors own 88.54% of the company's stock.

Rambus Price Performance

NASDAQ RMBS opened at $85.76 on Monday. The stock's fifty day moving average price is $103.19 and its 200 day moving average price is $112.05. Rambus, Inc. has a 1 year low of $70.90 and a 1 year high of $174.10. The company has a market cap of $9.30 billion, a price-to-earnings ratio of 39.34 and a beta of 1.88.

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

Insider Transactions at Rambus

In related news, Director Emiko Higashi sold 10,000 shares of Rambus stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $160.50, for a total transaction of $1,605,000.00. Following the completion of the sale, the director owned 49,519 shares of the company's stock, valued at $7,947,799.50. The trade was a 16.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Necip Sayiner sold 5,000 shares of the company's stock in a transaction that occurred on 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 sale, the director owned 18,223 shares in the company, valued at approximately $3,100,643.45. This represents a 21.53% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.75% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have commented on RMBS. Rosenblatt Securities reiterated a "buy" rating and issued a $165.00 price target on shares of Rambus in a research note on Tuesday, July 28th. Glj Research set a $165.00 price target on Rambus in a research note on Tuesday, July 28th. Benchmark restated a "buy" rating on shares of Rambus in a report on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Rambus in a research report on Friday, June 5th. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $145.88.

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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