Rambus (NASDAQ:RMBS) Trading Down 6.1% – Here’s Why

Rambus, Inc. (NASDAQ:RMBS)’s stock price was down 6.1% on Monday . The stock traded as low as $104.01 and last traded at $105.2210. 490,576 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 2,672,134 shares. The stock had previously closed at $112.10.

Analyst Upgrades and Downgrades

RMBS has been the subject of a number of analyst reports. Robert W. Baird downgraded Rambus from an “outperform” rating to a “neutral” rating and set a $120.00 target price for the company. in a research note on Tuesday, April 28th. Jefferies Financial Group lifted their price target on Rambus from $120.00 to $145.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Rosenblatt Securities upped their price objective on Rambus from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, April 28th. Evercore reiterated an “outperform” rating and issued a $172.00 price objective on shares of Rambus in a research report on Tuesday, April 28th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Rambus in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $130.43.

Rambus Trading Down 7.9%

The firm has a market capitalization of $11.17 billion, a PE ratio of 49.11 and a beta of 1.84. The stock’s 50 day moving average price is $133.82 and its two-hundred day moving average price is $113.85.

Rambus (NASDAQ:RMBS) last released its earnings results on Monday, April 27th. The semiconductor company reported $0.63 earnings per share (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 company had revenue of $180.19 million for the quarter, compared to analyst estimates of $179.94 million. Analysts expect that Rambus, Inc. will post 2.44 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Necip Sayiner sold 5,000 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $170.15, for a total value of $850,750.00. Following the completion of the sale, the director directly owned 18,223 shares in the company, valued at approximately $3,100,643.45. This represents a 21.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Eric B. Stang sold 5,000 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $146.00, for a total value of $730,000.00. Following the sale, the director owned 19,218 shares in the company, valued at approximately $2,805,828. The trade was a 20.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 74,424 shares of company stock valued at $11,179,633. 0.75% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Krilogy Financial LLC increased its stake in Rambus by 3.8% during the first quarter. Krilogy Financial LLC now owns 2,238 shares of the semiconductor company’s stock valued at $193,000 after purchasing an additional 81 shares during the last quarter. Oak Grove Capital LLC lifted its position in shares of Rambus by 1.3% in the 4th quarter. Oak Grove Capital LLC now owns 7,600 shares of the semiconductor company’s stock worth $698,000 after buying an additional 100 shares during the last quarter. Northwestern Mutual Investment Management Company LLC lifted its position in shares of Rambus by 0.4% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 24,085 shares of the semiconductor company’s stock worth $2,213,000 after buying an additional 103 shares during the last quarter. Balefire LLC boosted its holdings in shares of Rambus by 3.8% in the 1st quarter. Balefire LLC now owns 2,932 shares of the semiconductor company’s stock valued at $252,000 after buying an additional 108 shares during the period. Finally, Ashton Thomas Private Wealth LLC boosted its holdings in shares of Rambus by 3.3% in the 4th quarter. Ashton Thomas Private Wealth LLC now owns 3,445 shares of the semiconductor company’s stock valued at $317,000 after buying an additional 110 shares during the period. 88.54% of the stock is 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.