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

Rambus, Inc. (NASDAQ:RMBS)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $121.60, but opened at $125.87. Rambus shares last traded at $122.4460, with a volume of 247,628 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RMBS. Evercore ISI increased their price objective on shares of Rambus from $114.00 to $126.00 and gave the company an “outperform” rating in a research report on Tuesday, October 28th. Wells Fargo & Company upped their target price on shares of Rambus from $73.00 to $115.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 28th. William Blair initiated coverage on shares of Rambus in a research report on Thursday, January 22nd. They set an “outperform” rating for the company. Jefferies Financial Group raised shares of Rambus to a “strong-buy” rating in a research report on Tuesday, October 28th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $130.00 target price on shares of Rambus in a research note on Tuesday, October 28th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $108.14.

Rambus Price Performance

The business’s 50 day moving average price is $100.12 and its 200 day moving average price is $91.66. The stock has a market capitalization of $13.18 billion, a P/E ratio of 58.03 and a beta of 1.51.

Rambus (NASDAQ:RMBS) last issued its quarterly earnings data on Monday, October 27th. The semiconductor company reported $0.44 earnings per share for the quarter, missing analysts’ consensus estimates 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 the consensus estimate of $175.60 million. During the same quarter last year, the company earned $0.45 EPS. The firm’s revenue for the quarter was up 22.7% on a year-over-year basis. As a group, analysts forecast that Rambus, Inc. will post 1.89 earnings per share for the current fiscal year.

Insider Buying and Selling at Rambus

In other news, Director Eric B. Stang sold 5,000 shares of the firm’s stock in a transaction on Friday, November 7th. The stock was sold at an average price of $102.35, for a total value of $511,750.00. Following the transaction, the director directly owned 24,394 shares in the company, valued at $2,496,725.90. This trade represents a 17.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Steigerwald Gordon & Koch Inc. purchased a new position in Rambus in the third quarter worth about $25,000. Abound Wealth Management bought a new position in shares of Rambus in the 3rd quarter worth approximately $28,000. Torren Management LLC purchased a new position in shares of Rambus in the fourth quarter worth approximately $26,000. Spire Wealth Management grew its position in Rambus by 199.0% during the fourth quarter. Spire Wealth Management now owns 302 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 201 shares during the period. Finally, True Wealth Design LLC grew its position in Rambus by 162.5% during the second quarter. True Wealth Design LLC now owns 420 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 260 shares during the period. Institutional investors own 88.54% of the company’s stock.

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.