Rambus, Inc. (NASDAQ:RMBS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Consensus "Moderate Buy": Ten analysts rate Rambus a consensus "Moderate Buy" (3 hold, 5 buy, 2 strong buy) with an average 1‑year price target of $105.71 and top targets up to $130.
• Quarterly results: Rambus reported Q4 EPS of $0.68 (in line) and revenue of $190.24M (slightly above expectations), with a 32.6% net margin and 17.7% ROE; the stock trades around $94 with a $10.17B market cap and a 44.6 P/E.
• Insider selling: CEO Luc Seraphin and CFO Desmond Lynch sold significant stakes in late Feb/early Mar (CEO down ~10.8%, CFO down ~6.3%), leaving insiders with about 1% ownership while institutions hold ~88.5%.

Shares of Rambus, Inc. (NASDAQ:RMBS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the ten research firms that are presently covering the stock, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and two have issued a strong buy rating on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $105.7143.

Several research firms recently issued reports on RMBS. William Blair initiated coverage on shares of Rambus in a research note on Thursday, January 22nd. They set an "outperform" rating on the stock. Rosenblatt Securities restated a "buy" rating and set a $130.00 target price on shares of Rambus in a research note on Tuesday, February 3rd. Cfra lowered Rambus from a "hold" rating to a "moderate sell" rating in a research report on Monday, December 15th. Zacks Research upgraded Rambus to a "hold" rating in a research note on Monday, January 26th. Finally, Evercore reduced their price target on Rambus from $126.00 to $119.00 and set an "outperform" rating for the company in a report on Tuesday, February 3rd.

Rambus Stock Up 4.7%

Shares of NASDAQ:RMBS opened at $94.01 on Friday. The company has a market capitalization of $10.17 billion, a price-to-earnings ratio of 44.55 and a beta of 1.55. The company has a 50 day moving average of $102.06 and a two-hundred day moving average of $97.92. Rambus has a 52-week low of $40.12 and a 52-week high of $135.75.

Rambus (NASDAQ:RMBS - Get Free Report) last posted its earnings results on Monday, February 2nd. The semiconductor company reported $0.68 EPS for the quarter, hitting analysts' consensus estimates of $0.68. The business had revenue of $190.24 million for the quarter, compared to analysts' expectations of $188.21 million. Rambus had a net margin of 32.57% and a return on equity of 17.69%. On average, equities analysts anticipate that Rambus will post 1.89 earnings per share for the current year.

Insider Activity at Rambus

In other news, CFO Desmond Lynch sold 4,273 shares of the business's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.53, for a total value of $433,837.69. Following the completion of the sale, the chief financial officer owned 63,618 shares of the company's stock, valued at approximately $6,459,135.54. The trade was a 6.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Luc Seraphin sold 39,914 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $98.63, for a total transaction of $3,936,717.82. Following the completion of the sale, the chief executive officer owned 331,070 shares in the company, valued at approximately $32,653,434.10. This trade represents a 10.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Oak Grove Capital LLC increased its holdings in shares of Rambus by 1.3% in the 4th quarter. Oak Grove Capital LLC now owns 7,600 shares of the semiconductor company's stock valued at $698,000 after acquiring an additional 100 shares during the last quarter. Northwestern Mutual Investment Management Company LLC lifted its stake in Rambus by 0.4% during 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 purchasing an additional 103 shares during the last quarter. Krilogy Financial LLC lifted its stake in Rambus by 5.3% during the fourth quarter. Krilogy Financial LLC now owns 2,157 shares of the semiconductor company's stock worth $198,000 after purchasing an additional 108 shares during the last quarter. Ashton Thomas Private Wealth LLC boosted its holdings in Rambus by 3.3% in the fourth quarter. Ashton Thomas Private Wealth LLC now owns 3,445 shares of the semiconductor company's stock worth $317,000 after purchasing an additional 110 shares during the period. Finally, Meeder Advisory Services Inc. boosted its holdings in Rambus by 3.0% in the fourth quarter. Meeder Advisory Services Inc. now owns 3,883 shares of the semiconductor company's stock worth $357,000 after purchasing an additional 114 shares during the period. Institutional investors own 88.54% of the company's stock.

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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