Rambus (NASDAQ:RMBS) Shares Gap Down After Earnings Miss

Rambus Inc. (NASDAQ:RMBS)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $60.48, but opened at $58.00. Rambus shares last traded at $57.84, with a volume of 305,210 shares changing hands.

The semiconductor company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.14). The business had revenue of $117.90 million for the quarter, compared to analyst estimates of $132.00 million. Rambus had a return on equity of 17.70% and a net margin of 72.41%. The business’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS.

Analyst Upgrades and Downgrades

RMBS has been the subject of a number of recent analyst reports. Rosenblatt Securities reiterated a “buy” rating and issued a $85.00 price target on shares of Rambus in a research note on Wednesday, March 13th. Wells Fargo & Company increased their price objective on shares of Rambus from $80.00 to $85.00 and gave the company an “overweight” rating in a research report on Friday, January 26th. One analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, Rambus has an average rating of “Moderate Buy” and an average price target of $77.75.

Insider Activity

In related news, CEO Luc Seraphin sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $62.17, for a total transaction of $932,550.00. Following the transaction, the chief executive officer now directly owns 304,755 shares of the company’s stock, valued at $18,946,618.35. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, CEO Luc Seraphin sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $62.17, for a total transaction of $932,550.00. Following the transaction, the chief executive officer now directly owns 304,755 shares of the company’s stock, valued at $18,946,618.35. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Xianzhi Sean Fan sold 2,004 shares of the firm’s stock in a transaction dated Tuesday, February 20th. The shares were sold at an average price of $55.00, for a total transaction of $110,220.00. Following the completion of the transaction, the chief operating officer now directly owns 121,229 shares in the company, valued at $6,667,595. The disclosure for this sale can be found here. Insiders have sold 121,084 shares of company stock valued at $7,408,298 over the last ninety days. 1.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rambus

Hedge funds have recently made changes to their positions in the stock. Rise Advisors LLC acquired a new stake in Rambus during the 1st quarter worth approximately $28,000. Blue Trust Inc. increased its stake in shares of Rambus by 100.4% in the 4th quarter. Blue Trust Inc. now owns 447 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 224 shares in the last quarter. Fifth Third Bancorp increased its stake in shares of Rambus by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 504 shares of the semiconductor company’s stock valued at $34,000 after acquiring an additional 200 shares in the last quarter. Orion Capital Management LLC bought a new stake in shares of Rambus in the 3rd quarter valued at $39,000. Finally, GAMMA Investing LLC bought a new stake in shares of Rambus in the 4th quarter valued at $66,000. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Rambus Stock Performance

The company has a market cap of $5.95 billion, a P/E ratio of 18.27 and a beta of 1.16. The firm’s 50 day moving average price is $60.07 and its two-hundred day moving average price is $62.55.

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.