Rambus (NASDAQ:RMBS) Shares Down 10.9% Following Insider Selling

Rambus, Inc. (NASDAQ:RMBS)’s share price was down 10.9% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $88.01 and last traded at $88.15. Approximately 1,547,054 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 2,651,306 shares. The stock had previously closed at $98.88.

Specifically, CEO Luc Seraphin sold 39,914 shares of the firm’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $98.63, for a total value of $3,936,717.82. Following the transaction, the chief executive officer owned 331,070 shares of the company’s stock, valued at approximately $32,653,434.10. This trade represents a 10.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link.

Analyst Upgrades and Downgrades

Several research firms recently commented on RMBS. Susquehanna reduced their price target on Rambus from $100.00 to $90.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 3rd. William Blair began coverage on Rambus in a research report on Thursday, January 22nd. They set an “outperform” rating on the stock. Rosenblatt Securities restated a “buy” rating and set a $130.00 price objective on shares of Rambus in a research note on Tuesday, February 3rd. Cfra cut shares of Rambus from a “hold” rating to a “moderate sell” rating in a report on Monday, December 15th. Finally, Zacks Research raised shares of Rambus to a “hold” rating in a research report on Monday, January 26th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $105.71.

Rambus Trading Down 0.9%

The firm has a market capitalization of $9.83 billion, a price-to-earnings ratio of 43.24 and a beta of 1.55. The business has a 50-day moving average price of $102.56 and a two-hundred day moving average price of $97.03.

Rambus (NASDAQ:RMBS) last issued its quarterly earnings data on Monday, February 2nd. The semiconductor company reported $0.68 EPS for the quarter, hitting analysts’ consensus estimates of $0.68. The firm had revenue of $190.24 million during the quarter, compared to the consensus estimate of $188.21 million. Rambus had a return on equity of 17.69% and a net margin of 32.57%. On average, equities research analysts predict that Rambus, Inc. will post 1.89 earnings per share for the current fiscal year.

Institutional Trading of Rambus

Several hedge funds have recently bought and sold shares of RMBS. Caitong International Asset Management Co. Ltd bought a new stake in shares of Rambus during the fourth quarter valued at approximately $80,000. Oak Grove Capital LLC increased its position in Rambus by 1.3% in the 4th quarter. Oak Grove Capital LLC now owns 7,600 shares of the semiconductor company’s stock valued at $698,000 after acquiring an additional 100 shares during the period. Pacer Advisors Inc. boosted its position in Rambus by 8.5% during the 4th quarter. Pacer Advisors Inc. now owns 20,459 shares of the semiconductor company’s stock worth $1,880,000 after acquiring an additional 1,595 shares during the period. Virtu Financial LLC bought a new position in shares of Rambus in the fourth quarter worth $253,000. Finally, Invesco Ltd. increased its holdings in shares of Rambus by 70.6% during the fourth quarter. Invesco Ltd. now owns 4,148,653 shares of the semiconductor company’s stock valued at $381,220,000 after purchasing an additional 1,716,621 shares during the period. 88.54% of the stock is currently owned by institutional investors.

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.