Rambus (NASDAQ:RMBS) Shares Down 6.9% – Here’s What Happened

Rambus, Inc. (NASDAQ:RMBS)’s share price dropped 6.9% on Monday . The company traded as low as $83.61 and last traded at $83.5050. Approximately 166,468 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 2,395,602 shares. The stock had previously closed at $89.73.

Analyst Ratings Changes

Several research analysts have recently issued reports on RMBS shares. Weiss Ratings cut Rambus from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, March 10th. Susquehanna cut their target price on Rambus from $100.00 to $90.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 3rd. Evercore decreased their target price on Rambus from $126.00 to $119.00 and set an “outperform” rating for the company in a research note on Tuesday, February 3rd. William Blair initiated coverage on Rambus in a report on Thursday, January 22nd. They issued an “outperform” rating for the company. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $130.00 price target on shares of Rambus in a research note on Tuesday, February 3rd. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Rambus has an average rating of “Moderate Buy” and an average target price of $105.71.

Rambus Price Performance

The firm’s 50 day simple moving average is $100.17 and its 200-day simple moving average is $99.27. The company has a market cap of $9.53 billion, a price-to-earnings ratio of 41.65 and a beta of 1.55.

Rambus (NASDAQ:RMBS) last posted its earnings results on Monday, February 2nd. The semiconductor company reported $0.68 earnings per share for the quarter, meeting the consensus estimate of $0.68. The business had revenue of $190.24 million during the quarter, compared to the consensus estimate of $188.21 million. Rambus had a return on equity of 17.69% and a net margin of 32.57%. On average, analysts forecast that Rambus, Inc. will post 1.89 EPS for the current year.

Insider Buying and Selling

In other news, CEO Luc Seraphin sold 39,914 shares of Rambus stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $98.63, for a total value of $3,936,717.82. Following the transaction, the chief executive officer directly owned 331,070 shares of the company’s stock, valued at $32,653,434.10. The trade was a 10.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Desmond Lynch sold 4,273 shares of the company’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.53, for a total transaction 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. This trade represents a 6.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.75% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RMBS. Norges Bank acquired a new stake in shares of Rambus during the second quarter worth about $126,268,000. Invesco Ltd. raised its stake in 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 last quarter. EdgePoint Investment Group Inc. raised its stake in Rambus by 138.4% during the 2nd quarter. EdgePoint Investment Group Inc. now owns 2,787,327 shares of the semiconductor company’s stock valued at $178,445,000 after acquiring an additional 1,618,133 shares during the last quarter. Alliancebernstein L.P. lifted its position in Rambus by 572.7% during the 3rd quarter. Alliancebernstein L.P. now owns 1,822,030 shares of the semiconductor company’s stock worth $189,856,000 after acquiring an additional 1,551,159 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of Rambus by 196.0% in the 3rd quarter. Bank of America Corp DE now owns 1,550,665 shares of the semiconductor company’s stock valued at $161,579,000 after purchasing an additional 1,026,776 shares during the last quarter. 88.54% of the stock is currently owned by institutional investors and hedge funds.

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.