Rambus Inc. (RMBS) Lowered to “Sell” at Zacks Investment Research
Rambus Inc. (NASDAQ:RMBS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Rambus, Inc. designs, develops, licenses and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of computers, consumer electronics and other electronic systems. The company licenses semiconductor companies to manufacture and sell memory and logic integrated circuits incorporating Rambus interface technology and markets its solution to systems companies to encourage them to design Rambus interface technology into their products. “
A number of other equities analysts have also recently issued reports on the company. Benchmark Co. restated a “positive” rating on shares of Rambus in a report on Tuesday, October 4th. Roth Capital assumed coverage on Rambus in a report on Wednesday, August 31st. They set a “buy” rating and a $16.00 price target on the stock. Citigroup Inc. lifted their price target on Rambus from $14.00 to $15.00 and gave the company a “buy” rating in a report on Wednesday, July 20th. Jefferies Group reiterated a “hold” rating and set a $12.50 price target on shares of Rambus in a report on Wednesday, July 6th. Finally, JPMorgan Chase & Co. reiterated a “hold” rating and set a $12.50 price target on shares of Rambus in a report on Tuesday, July 5th. One analyst has rated the stock with a sell rating, three have given a hold rating and six have issued a buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $14.11.
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Shares of Rambus (NASDAQ:RMBS) opened at 11.99 on Wednesday. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 6.82 and a beta of 1.32. The stock has a 50 day moving average price of $13.07 and a 200-day moving average price of $12.72. Rambus has a 1-year low of $9.86 and a 1-year high of $14.50.
Rambus (NASDAQ:RMBS) last issued its earnings results on Monday, July 18th. The company reported $0.15 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.13 by $0.02. The business had revenue of $76.50 million for the quarter, compared to analysts’ expectations of $74.44 million. Rambus had a return on equity of 10.40% and a net margin of 66.99%. The company’s quarterly revenue was up 5.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.13 EPS. On average, equities research analysts expect that Rambus will post $0.56 earnings per share for the current fiscal year.
In other news, CEO Ronald D. Black sold 29,528 shares of the company’s stock in a transaction dated Thursday, July 21st. The stock was sold at an average price of $13.51, for a total transaction of $398,923.28. Following the completion of the sale, the chief executive officer now owns 359,241 shares in the company, valued at approximately $4,853,345.91. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Laura Stark sold 4,010 shares of the company’s stock in a transaction dated Thursday, October 6th. The stock was sold at an average price of $12.51, for a total value of $50,165.10. Following the sale, the senior vice president now owns 169,876 shares of the company’s stock, valued at approximately $2,125,148.76. The disclosure for this sale can be found here. Corporate insiders own 2.30% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in RMBS. Emerald Acquisition Ltd. bought a new stake in Rambus during the second quarter valued at about $4,979,000. Bank of Montreal Can bought a new stake in Rambus during the second quarter valued at about $4,881,000. Panagora Asset Management Inc. increased its stake in Rambus by 12,970.1% in the second quarter. Panagora Asset Management Inc. now owns 326,753 shares of the company’s stock valued at $3,947,000 after buying an additional 324,253 shares during the period. Dimensional Fund Advisors LP increased its stake in Rambus by 8.6% in the second quarter. Dimensional Fund Advisors LP now owns 3,845,877 shares of the company’s stock valued at $46,457,000 after buying an additional 304,699 shares during the period. Finally, BlackRock Group LTD increased its stake in Rambus by 73.5% in the first quarter. BlackRock Group LTD now owns 257,490 shares of the company’s stock valued at $3,541,000 after buying an additional 109,067 shares during the period. Institutional investors own 74.55% of the company’s stock.
Rambus Inc produces semiconductor and Internet protocol (IP) products, spanning memory and interfaces to security, sensors and lighting. The Company’s products are integrated into devices and systems, powering and securing diverse applications, including big data and media platforms. Its segments include Memory and Interfaces Division (MID) and Cryptography Research Division (CRD).
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