Rambus (NASDAQ:RMBS) Shares Up 7.4% – Should You Buy?

Rambus, Inc. (NASDAQ:RMBS)’s share price shot up 7.4% during mid-day trading on Wednesday . The company traded as high as $124.09 and last traded at $124.2450. 1,525,922 shares were traded during mid-day trading, a decline of 32% from the average session volume of 2,235,657 shares. The stock had previously closed at $115.71.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Weiss Ratings raised shares of Rambus from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday. Cfra Research downgraded Rambus from a “hold” rating to a “moderate sell” rating in a research report on Monday, December 15th. Evercore ISI raised their price target on Rambus from $114.00 to $126.00 and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Rosenblatt Securities reiterated a “buy” rating and set a $130.00 price objective on shares of Rambus in a research note on Tuesday, October 28th. Finally, Susquehanna set a $100.00 target price on Rambus and gave the stock a “neutral” rating in a research note on Monday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $108.14.

Rambus Stock Down 6.4%

The firm has a market capitalization of $12.25 billion, a P/E ratio of 53.95 and a beta of 1.51. The business’s 50-day simple moving average is $100.64 and its 200 day simple moving average is $92.01.

Rambus (NASDAQ:RMBS) last issued its earnings results on Monday, October 27th. The semiconductor company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.18). Rambus had a net margin of 33.72% and a return on equity of 17.73%. The company had revenue of $178.51 million for the quarter, compared to analysts’ expectations of $175.60 million. During the same quarter in the prior year, the company earned $0.45 earnings per share. The company’s revenue was up 22.7% compared to the same quarter last year. Sell-side analysts predict that Rambus, Inc. will post 1.89 earnings per share for the current year.

Insider Activity

In other news, Director Eric B. Stang sold 5,000 shares of the company’s stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $102.35, for a total transaction of $511,750.00. Following the completion of the transaction, the director directly owned 24,394 shares of the company’s stock, valued at approximately $2,496,725.90. This represents a 17.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RMBS. Krilogy Financial LLC increased its stake in shares of Rambus by 5.3% during the fourth quarter. Krilogy Financial LLC now owns 2,157 shares of the semiconductor company’s stock valued at $198,000 after purchasing an additional 108 shares in the last quarter. Ashton Thomas Private Wealth LLC grew its stake 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 worth $317,000 after buying an additional 110 shares during the last quarter. Allworth Financial LP increased its position in Rambus by 8.2% during the 3rd quarter. Allworth Financial LP now owns 1,601 shares of the semiconductor company’s stock valued at $167,000 after buying an additional 121 shares in the last quarter. Coldstream Capital Management Inc. raised its stake in Rambus by 2.2% during the third quarter. Coldstream Capital Management Inc. now owns 5,703 shares of the semiconductor company’s stock valued at $594,000 after buying an additional 125 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Rambus by 3.3% in the fourth quarter. GAMMA Investing LLC now owns 4,833 shares of the semiconductor company’s stock worth $444,000 after acquiring an additional 153 shares in the last quarter. Hedge funds and other institutional investors own 88.54% of the company’s stock.

About Rambus

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.