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

Key Points

• Rambus currently has a consensus analyst rating of “Moderate Buy” from 11 covering firms, with an average 12-month price target of $134.75.
• Recent analyst actions were mixed but mostly positive: Jefferies and Wells Fargo raised targets to $145, Evercore reiterated an outperform rating with a $172 target, while Baird downgraded the stock to neutral.
• Insiders have been selling shares, including directors Necip Sayiner and Emiko Higashi, while institutional ownership remains high at 88.54%. Rambus also recently beat quarterly EPS estimates, reporting $0.63 per share versus the expected $0.61.

Shares of Rambus, Inc. (NASDAQ:RMBS - Get Free Report) have received an average recommendation of "Moderate Buy" from the eleven research firms that are presently covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a hold rating, five have given a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $134.75.

Several equities analysts have recently weighed in on the company. Jefferies Financial Group increased their price target on Rambus from $120.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, April 28th. Robert W. Baird cut Rambus from an "outperform" rating to a "neutral" rating and set a $120.00 price objective for the company. in a research report on Tuesday, April 28th. Wells Fargo & Company increased their target price on Rambus from $115.00 to $145.00 and gave the company an "overweight" rating in a report on Tuesday, April 28th. Evercore reissued an "outperform" rating and issued a $172.00 target price on shares of Rambus in a research report on Tuesday, April 28th. Finally, Benchmark started coverage on Rambus in a research note on Wednesday. They set a "buy" rating and a $165.00 price target for the company.

Insider Buying and Selling

In other Rambus news, 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 transaction of $850,750.00. Following the completion of the sale, the director directly owned 18,223 shares of the company's stock, valued at approximately $3,100,643.45. This represents a 21.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Emiko Higashi sold 10,000 shares of the stock in a transaction that occurred on 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 transaction, the director owned 49,519 shares in the company, valued at $7,947,799.50. The trade was a 16.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 65,886 shares of company stock valued at $10,171,466 in the last 90 days. 0.75% of the stock is owned by insiders.

Hedge Funds Weigh In On Rambus

Institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its position in Rambus by 2.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,385,570 shares of the semiconductor company's stock worth $494,881,000 after buying an additional 140,226 shares in the last quarter. Invesco Ltd. grew its stake 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 acquiring an additional 1,716,621 shares during the period. Geode Capital Management LLC grew its stake in shares of Rambus by 3.4% during the 4th quarter. Geode Capital Management LLC now owns 2,842,715 shares of the semiconductor company's stock valued at $261,256,000 after acquiring an additional 94,214 shares during the period. EdgePoint Investment Group Inc. increased its holdings in Rambus by 38.5% in the 1st quarter. EdgePoint Investment Group Inc. now owns 1,947,742 shares of the semiconductor company's stock worth $167,564,000 after acquiring an additional 541,056 shares in the last quarter. Finally, Norges Bank purchased a new stake in Rambus in the 4th quarter worth approximately $156,356,000. 88.54% of the stock is owned by institutional investors.

Rambus Stock Up 0.0%

Shares of RMBS opened at $101.44 on Friday. Rambus has a 52 week low of $62.81 and a 52 week high of $174.10. The business's 50 day moving average price is $131.72 and its 200-day moving average price is $114.01. The stock has a market cap of $10.97 billion, a P/E ratio of 48.30 and a beta of 1.84.

Rambus (NASDAQ:RMBS - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The semiconductor company reported $0.63 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.02. Rambus had a net margin of 31.90% and a return on equity of 17.41%. The firm had revenue of $180.19 million for the quarter, compared to analysts' expectations of $179.94 million. On average, equities analysts anticipate that Rambus will post 2.44 EPS for the current year.

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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