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

Rambus Inc. (NASDAQ:RMBS)’s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The semiconductor company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.14). The firm had revenue of $117.90 million during the quarter, compared to analysts’ expectations of $132.00 million. Rambus had a net margin of 72.41% and a return on equity of 17.70%. The company’s revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.35 EPS.

Analysts Set New Price Targets

Several research firms have recently commented on RMBS. Wells Fargo & Company boosted their price target on Rambus from $80.00 to $85.00 and gave the stock an “overweight” rating in a research report on Friday, January 26th. Rosenblatt Securities restated a “buy” rating and issued a $85.00 price target on shares of Rambus in a report on Wednesday, March 13th. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, Rambus currently has an average rating of “Moderate Buy” and a consensus price target of $77.75.

Insider Activity at Rambus

In other Rambus news, CEO Luc Seraphin sold 15,000 shares of the company’s stock in a transaction that occurred on 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 owns 304,755 shares in the company, valued at approximately $18,946,618.35. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, COO Xianzhi Sean Fan sold 2,004 shares of Rambus stock in a transaction that occurred on 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 of the company’s stock, valued at approximately $6,667,595. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Luc Seraphin sold 15,000 shares of the stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $62.17, for a total transaction of $932,550.00. Following the sale, the chief executive officer now directly owns 304,755 shares in the company, valued at $18,946,618.35. The disclosure for this sale can be found here. Insiders sold 121,084 shares of company stock valued at $7,408,298 in the last three months. 1.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Rambus

Hedge funds have recently bought and sold shares of the business. Rise Advisors LLC purchased a new stake in shares of Rambus during the first quarter worth $28,000. Blue Trust Inc. grew its stake in Rambus by 100.4% during 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 lifted its stake in Rambus by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 504 shares of the semiconductor company’s stock worth $34,000 after purchasing an additional 200 shares in the last quarter. Orion Capital Management LLC acquired a new position in shares of Rambus during the 3rd quarter worth approximately $39,000. Finally, GAMMA Investing LLC purchased a new position in Rambus during the fourth quarter worth approximately $66,000. Hedge funds and other institutional investors own 88.54% of the company’s stock.

Rambus Price Performance

The company has a market cap of $6.23 billion, a price-to-earnings ratio of 20.16 and a beta of 1.16. The stock has a 50 day simple moving average of $60.07 and a two-hundred day simple moving average of $62.57.

About Rambus

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.