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

Key Points

• Analysts give Rambus a consensus recommendation of Moderate Buy from 10 analysts with an average 1‑year target of $130.43, while some firms have recently raised targets (Rosenblatt $150, Wells Fargo $145) and others have downgraded.
• Rambus beat quarterly EPS estimates ($0.63 vs. $0.61) and reported $180.2M revenue with a 31.9% net margin and 17.4% ROE; the stock trades near $111.93 with a 52‑week range of $49.29–$161.80 and a PE of 53.3.
• Insiders have sold 61,123 shares in the past 90 days (including the CEO and a director), cutting insider ownership to 0.75%, while institutional investors hold about 88.54% of the shares.

Shares of Rambus, Inc. (NASDAQ:RMBS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the ten analysts that are presently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $130.4286.

A number of equities research analysts recently weighed in on RMBS shares. William Blair started coverage on shares of Rambus in a research report on Thursday, January 22nd. They set an "outperform" rating for the company. Robert W. Baird downgraded shares of 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. Rosenblatt Securities boosted 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. Weiss Ratings downgraded shares of Rambus from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, March 10th. Finally, Wells Fargo & Company boosted their price objective on shares of Rambus from $115.00 to $145.00 and gave the company an "overweight" rating in a research report on Tuesday, April 28th.

Rambus Price Performance

Shares of NASDAQ:RMBS opened at $111.93 on Monday. Rambus has a fifty-two week low of $49.29 and a fifty-two week high of $161.80. The firm has a 50-day simple moving average of $103.04 and a 200 day simple moving average of $101.66. The company has a market cap of $12.10 billion, a PE ratio of 53.30 and a beta of 1.79.

Rambus (NASDAQ:RMBS - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The semiconductor company reported $0.63 earnings per share 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 business had revenue of $180.19 million during the quarter, compared to the consensus estimate of $179.94 million. As a group, research analysts forecast that Rambus will post 2.44 EPS for the current fiscal year.

Insiders Place Their Bets

In other Rambus news, Director Meera Rao sold 8,538 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $118.08, for a total value of $1,008,167.04. Following the completion of the transaction, the director owned 22,946 shares in the company, valued at approximately $2,709,463.68. This represents a 27.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Luc Seraphin sold 39,914 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $98.63, for a total transaction of $3,936,717.82. Following the completion of the transaction, the chief executive officer owned 331,070 shares of the company's stock, valued at approximately $32,653,434.10. This trade represents a 10.76% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 61,123 shares of company stock worth $6,295,577. Insiders own 0.75% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RMBS. Steigerwald Gordon & Koch Inc. bought a new position in Rambus in the 3rd quarter worth about $25,000. Acumen Wealth Advisors LLC bought a new position in Rambus in the 4th quarter worth about $25,000. Torren Management LLC bought a new position in Rambus in the 4th quarter worth about $26,000. Spire Wealth Management grew its position in Rambus by 199.0% in the 4th quarter. Spire Wealth Management now owns 302 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 201 shares during the last quarter. Finally, University of Texas Texas AM Investment Management Co. bought a new position in Rambus in the 4th quarter worth about $28,000. 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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