Rambus (NASDAQ:RMBS) Trading 7.4% Higher - Still a Buy?

Key Points

• Rambus shares rose 7.4% to about $94.10 in Monday trading, although volume was roughly 80% below the stock’s average daily level.
• 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.
• The company exceeded quarterly expectations, reporting $0.77 in EPS versus $0.72 expected and $207.4 million in revenue, up 20.4% year over year; institutional investors and hedge funds own 88.54% of the stock.

Rambus, Inc. (NASDAQ:RMBS - Get Free Report) shares shot up 7.4% during trading on Monday . The stock traded as high as $92.24 and last traded at $94.0950. Approximately 518,624 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 2,625,153 shares. The stock had previously closed at $87.60.

Wall Street Analyst Weigh In

A number of research firms have issued reports on RMBS. Rosenblatt Securities restated a "buy" rating and set a $165.00 price target on shares of Rambus in a report on Tuesday, July 28th. Weiss Ratings reissued a "hold (c+)" rating on shares of Rambus in a research report on Wednesday, September 2nd. Benchmark reaffirmed a "buy" rating on shares of Rambus in a report on Tuesday, July 28th. Finally, Glj Research set a $165.00 price target on Rambus in a research report on Tuesday, July 28th. Six equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $145.88.

Rambus Trading Up 11.5%

The company has a fifty day moving average price of $92.86 and a two-hundred day moving average price of $110.37. The company has a market cap of $10.59 billion, a price-to-earnings ratio of 44.80 and a beta of 1.88.

Rambus (NASDAQ:RMBS - Get Free Report) last released its earnings results on Monday, July 27th. The semiconductor company reported $0.77 earnings per share 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 the consensus estimate of $199.30 million. During the same quarter in the previous year, the company posted $0.53 earnings per share. The firm's quarterly revenue was up 20.4% on a year-over-year basis. Sell-side analysts anticipate that Rambus, Inc. will post 2.52 EPS for the current fiscal year.

Hedge Funds Weigh In On Rambus

Several large investors have recently bought and sold shares of RMBS. Danske Bank A S bought a new stake in shares of Rambus during the 2nd quarter valued at $27,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Rambus during the second quarter worth $41,000. Western Wealth Management LLC acquired a new stake in shares of Rambus during the first quarter worth $44,000. PenderFund Capital Management Ltd. bought a new stake in Rambus in the second quarter valued at about $46,000. Finally, Persistent Asset Partners Ltd bought a new stake in Rambus in the second quarter valued at about $49,000. 88.54% of the stock is currently owned by institutional investors and hedge funds.

About Rambus

Rambus Inc NASDAQ: RMBS is a technology company that develops semiconductor and intellectual property solutions for the data-intensive computing market. Its business focuses on improving the performance, capacity, security and energy efficiency of memory and other components used in data centers, personal computers, networking equipment and other electronic systems.

The company offers memory interface chips and related products, including registered clock drivers, memory interface chips and power-management solutions designed for high-performance memory modules.

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