Rambus (NASDAQ:RMBS) Releases Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Rambus reported earnings of $0.53 EPS for the quarter, missing analysts' estimates of $0.61 EPS by $0.08, although revenue grew by 30.4% year-over-year.
• Insider transactions revealed that Director Steven Laub sold 3,653 shares at an average price of $55.56, reducing his ownership by 25.09%.
• Research analysts maintain a strong outlook for Rambus, with a consensus rating of “Buy” and an average price target of $75.00.

Rambus (NASDAQ:RMBS - Get Free Report) released its earnings results on Monday. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.61 by ($0.08), Briefing.com reports. Rambus had a net margin of 34.23% and a return on equity of 18.01%. During the same period last year, the business posted $0.33 earnings per share. The company's revenue for the quarter was up 30.4% compared to the same quarter last year.

Rambus Trading Up 2.2%

RMBS stock traded up $1.39 during trading on Monday, hitting $64.24. The company had a trading volume of 1,856,627 shares, compared to its average volume of 1,015,013. The company has a fifty day moving average price of $60.89 and a two-hundred day moving average price of $57.27. Rambus has a fifty-two week low of $37.42 and a fifty-two week high of $70.05. The company has a market cap of $6.90 billion, a P/E ratio of 33.46 and a beta of 1.24.

Insider Transactions at Rambus

In other Rambus news, Director Steven Laub sold 3,653 shares of the stock in a transaction on Monday, May 19th. The stock was sold at an average price of $55.56, for a total transaction of $202,960.68. Following the completion of the transaction, the director directly owned 10,904 shares in the company, valued at $605,826.24. This represents a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RMBS. NewEdge Advisors LLC raised its stake in Rambus by 22,321.4% during the first quarter. NewEdge Advisors LLC now owns 9,417 shares of the semiconductor company's stock worth $488,000 after acquiring an additional 9,375 shares in the last quarter. Empowered Funds LLC boosted its stake in Rambus by 34.1% in the first quarter. Empowered Funds LLC now owns 22,750 shares of the semiconductor company's stock worth $1,178,000 after purchasing an additional 5,783 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Rambus by 6.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 309,512 shares of the semiconductor company's stock worth $16,025,000 after purchasing an additional 19,120 shares in the last quarter. Finally, Acadian Asset Management LLC acquired a new position in Rambus in the first quarter worth $218,000. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have recently commented on RMBS shares. Rosenblatt Securities reiterated a "buy" rating and set a $80.00 price target on shares of Rambus in a report on Tuesday, April 29th. Wall Street Zen raised Rambus from a "buy" rating to a "strong-buy" rating in a report on Friday, July 18th. Six investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $75.00.

Rambus Company Profile

Rambus Inc provides semiconductor products in the United States, South Korea, Singapore, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, OEMs, and hyperscalers; silicon IP, such as interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and interface IP solutions for high-speed memory and chip-to-chip digital controller IP.

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