Rambus (NASDAQ:RMBS) Shares Down 5.2% Following Insider Selling

Key Points

• Rambus shares fell 5.2% after insider director Meera Rao sold 653 shares at an average price of $101.99, resulting in a significant drop in stock value.
• Despite the recent decline, several analysts have upgraded their price targets for Rambus, with expectations ranging from $75.00 to $130.00 and a consensus rating of "Buy."
• Institutional investors are heavily vested in Rambus, with over 88% ownership held by hedge funds and other institutions, reflecting confidence in the company's future performance.

Rambus, Inc. (NASDAQ:RMBS - Get Free Report) shares dropped 5.2% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $97.88 and last traded at $98.30. Approximately 1,112,516 shares traded hands during trading, a decline of 12% from the average daily volume of 1,261,434 shares. The stock had previously closed at $103.71.

Specifically, Director Meera Rao sold 653 shares of the business's stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $101.99, for a total transaction of $66,599.47. Following the completion of the transaction, the director directly owned 29,261 shares of the company's stock, valued at approximately $2,984,329.39. The trade was a 2.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Rosenblatt Securities lifted their target price on shares of Rambus from $90.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. Robert W. Baird lifted their target price on Rambus from $90.00 to $120.00 and gave the company an "outperform" rating in a research note on Monday, September 15th. Arete upgraded shares of Rambus from a "neutral" rating to a "buy" rating and set a $91.00 price objective on the stock in a research report on Thursday, August 28th. Susquehanna upped their price objective on shares of Rambus from $70.00 to $75.00 and gave the stock a "positive" rating in a research report on Tuesday, July 29th. Finally, Jefferies Financial Group boosted their price target on shares of Rambus from $69.00 to $75.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the company. According to data from MarketBeat, Rambus presently has an average rating of "Buy" and an average target price of $93.50.

Rambus Price Performance

The company's 50-day moving average is $82.00 and its 200-day moving average is $64.95. The firm has a market capitalization of $10.59 billion, a price-to-earnings ratio of 46.36 and a beta of 1.46.

Institutional Investors Weigh In On Rambus

Institutional investors have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD boosted its position in shares of Rambus by 60.5% in the first quarter. Price T Rowe Associates Inc. MD now owns 8,746,856 shares of the semiconductor company's stock worth $452,870,000 after buying an additional 3,297,728 shares during the period. EdgePoint Investment Group Inc. boosted its holdings in Rambus by 138.4% in the 2nd quarter. EdgePoint Investment Group Inc. now owns 2,787,327 shares of the semiconductor company's stock worth $178,445,000 after acquiring an additional 1,618,133 shares during the period. Geode Capital Management LLC grew its position in Rambus by 1.3% in the second quarter. Geode Capital Management LLC now owns 2,687,691 shares of the semiconductor company's stock valued at $172,086,000 after acquiring an additional 35,744 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of Rambus by 13.2% during the second quarter. Bank of New York Mellon Corp now owns 2,019,504 shares of the semiconductor company's stock valued at $129,289,000 after purchasing an additional 235,253 shares during the period. Finally, Norges Bank acquired a new position in shares of Rambus during the second quarter worth $126,268,000. Hedge funds and other institutional investors own 88.54% of the company's stock.

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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