Rambus (NASDAQ:RMBS) Shares Gap Up – Here’s Why

Rambus, Inc. (NASDAQ:RMBS)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $100.85, but opened at $107.50. Rambus shares last traded at $104.9560, with a volume of 240,218 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Rambus in a research note on Friday, June 5th. Evercore restated an “outperform” rating and set a $172.00 target price on shares of Rambus in a research report on Tuesday, April 28th. Robert W. Baird cut Rambus from an “outperform” rating to a “neutral” rating and set a $120.00 price target for the company. in a research note on Tuesday, April 28th. Benchmark started coverage on shares of Rambus in a research report on Wednesday, July 15th. They issued a “buy” rating and a $165.00 price target on the stock. Finally, Rosenblatt Securities lifted their price objective on shares of Rambus from $130.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, April 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $134.75.

Rambus Stock Performance

The stock’s 50-day moving average is $131.05 and its 200 day moving average is $114.20. The firm has a market cap of $11.38 billion, a P/E ratio of 50.18 and a beta of 1.84.

Rambus (NASDAQ:RMBS) last posted its earnings results on Monday, April 27th. The semiconductor company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.02. Rambus had a return on equity of 17.41% and a net margin of 31.90%.The firm had revenue of $180.19 million for the quarter, compared to analyst estimates of $179.94 million. On average, research analysts anticipate that Rambus, Inc. will post 2.44 EPS for the current year.

Insider Activity at Rambus

In other news, Director Meera Rao sold 2,972 shares of Rambus stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $150.30, for a total transaction of $446,691.60. Following the transaction, the director owned 19,974 shares in the company, valued at $3,002,092.20. The trade was a 12.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Xianzhi Sean Fan sold 37,914 shares of Rambus stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $151.69, for a total value of $5,751,174.66. Following the transaction, the executive vice president owned 168,358 shares in the company, valued at $25,538,225.02. This trade represents a 18.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 65,886 shares of company stock valued at $10,171,466 over the last 90 days. Insiders own 0.75% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RMBS. Acumen Wealth Advisors LLC bought a new stake in Rambus in the 4th quarter valued at $25,000. Torren Management LLC acquired a new position in Rambus in the 4th quarter worth $26,000. Spire Wealth Management increased its holdings in Rambus by 199.0% during the 4th quarter. Spire Wealth Management now owns 302 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 201 shares in the last quarter. University of Texas Texas AM Investment Management Co. bought a new position in Rambus during the 4th quarter worth about $28,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Rambus in the 1st quarter valued at about $44,000. 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.