Traders Buy Large Volume of Call Options on Rambus (NASDAQ:RMBS)


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Rambus Inc. (NASDAQ:RMBS) was the target of some unusual options trading activity on Wednesday. Stock traders purchased 11,814 call options on the company. This is an increase of 1,507% compared to the average volume of 735 call options.

Several equities research analysts recently weighed in on RMBS shares. BidaskClub raised shares of Rambus from a “hold” rating to a “buy” rating in a research note on Thursday, January 7th. Zacks Investment Research downgraded shares of Rambus from a “hold” rating to a “sell” rating in a research note on Tuesday, October 6th. Finally, Roth Capital boosted their price target on shares of Rambus from $18.00 to $21.00 and gave the stock a “buy” rating in a report on Wednesday, December 30th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and four have given a buy rating to the stock. Rambus presently has an average rating of “Buy” and an average target price of $18.06.

In other news, CEO Luc Seraphin sold 2,745 shares of the business’s stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $15.39, for a total value of $42,245.55. Following the sale, the chief executive officer now directly owns 209,841 shares of the company’s stock, valued at approximately $3,229,452.99. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Jae Kim sold 10,350 shares of the company’s stock in a transaction that occurred on Monday, November 23rd. The stock was sold at an average price of $16.00, for a total transaction of $165,600.00. Following the sale, the senior vice president now directly owns 111,819 shares in the company, valued at $1,789,104. The disclosure for this sale can be found here. Insiders sold a total of 34,313 shares of company stock worth $549,392 over the last three months. Insiders own 1.10% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the stock. Heard Capital LLC acquired a new stake in Rambus in the 3rd quarter valued at about $5,922,000. Assenagon Asset Management S.A. grew its stake in Rambus by 88.1% in the 3rd quarter. Assenagon Asset Management S.A. now owns 470,303 shares of the semiconductor company’s stock valued at $6,438,000 after acquiring an additional 220,251 shares during the last quarter. Matarin Capital Management LLC acquired a new stake in Rambus in the 3rd quarter valued at about $2,798,000. Neuberger Berman Group LLC boosted its stake in shares of Rambus by 5.1% during the 3rd quarter. Neuberger Berman Group LLC now owns 3,185,475 shares of the semiconductor company’s stock worth $43,556,000 after purchasing an additional 154,123 shares during the last quarter. Finally, Two Sigma Advisers LP boosted its stake in shares of Rambus by 20.6% during the 2nd quarter. Two Sigma Advisers LP now owns 570,885 shares of the semiconductor company’s stock worth $8,677,000 after purchasing an additional 97,600 shares during the last quarter. Hedge funds and other institutional investors own 82.40% of the company’s stock.

NASDAQ RMBS opened at $19.89 on Thursday. The company has a quick ratio of 8.32, a current ratio of 8.46 and a debt-to-equity ratio of 0.16. Rambus has a 52 week low of $9.01 and a 52 week high of $20.47. The stock has a market capitalization of $2.27 billion, a PE ratio of -48.51, a price-to-earnings-growth ratio of 1.01 and a beta of 0.87. The firm has a 50 day moving average of $17.59 and a two-hundred day moving average of $15.17.

Rambus (NASDAQ:RMBS) last issued its earnings results on Monday, November 2nd. The semiconductor company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.38). Rambus had a negative net margin of 18.91% and a negative return on equity of 2.97%. The company had revenue of $56.90 million during the quarter, compared to analyst estimates of $103.00 million. During the same quarter in the previous year, the company posted $0.23 EPS. The company’s quarterly revenue was down .9% on a year-over-year basis. On average, equities research analysts expect that Rambus will post 0.94 earnings per share for the current fiscal year.

Rambus announced that its board has approved a stock repurchase plan on Monday, November 2nd that allows the company to repurchase 20,000,000 shares. This repurchase authorization allows the semiconductor company to reacquire shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

About Rambus

Rambus Inc provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, Asia, and internationally. It offers DDR memory interface chips to module manufacturers and OEMs; physical interface and companion digital controller IPs for SoC designers; and industry-standard interface solutions, such as 28G, 32G, 56G, and 112G SerDes, as well as PCIe 5.0.

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