Allspring Global Investments Holdings LLC, an institutional investor, has recently increased its stake in Rambus Inc. by 25.8% in the fourth quarter of the fiscal year. According to the 13F filing with the Securities and Exchange Commission, Allspring Global now holds a total of 15,299 shares of Rambus’ stock which is worth $548,000. The company is known for its cutting-edge semiconductor and Internet Protocol products that span from memory and interfaces to security measures, smart sensors, and lighting. Among their list of products are Memory Interface Chips or MICs that function primarily as bridges between random-access memory devices and microprocessors.
Aside from Allspring Global’s holdings increase in Rambus’ shares, there have also been notable insider trades within the company. In particular, Director Necip Sayiner sold a total of 2,873 shares valued at around $130k on February 10th at an average price of $45.53 per share. Following this transaction, Sayiner now owns up to more than 25k shares directly under his name with an approximate value of over one million dollars in total.
Moreover, CEO Luc Seraphin previously sold around 12k Rambus Inc.’s stocks at a price point averaging at around $41 per share last March 13th with a total transaction value amounting to over half a million dollars. Following this sale transaction by Seraphin, he currently owns more than 354k company shares which values over $14 million altogether.
Overall, insider trades show us that members of Rambus’ management team do not only hold significant figures of common stocks but also make transactions regularly – mostly selling but sometimes buying – as they try to manage their own portfolios while managing the direction and performance analysis of Rambus Inc.’s overall standing in the market among its other competitors. As of writing this article, insiders currently own around one percent of the total shares outstanding in the company.
Rambus Inc. Attracts Interest from Institutional Investors and Hedge Funds Amid Mixed Analyst Ratings
Rambus Inc., a semiconductor and Internet Protocol products provider, has attracted the interest of institutional investors and hedge funds. Recently, Veriti Management LLC bought new shares in Rambus, valued at approximately $203,000. Furthermore, Maryland State Retirement & Pension System purchased a new stake in the company worth about $1,585,000 during the fourth quarter of last year. Additionally, Sequoia Financial Advisors LLC bought shares in Rambus for approximately $227,000 in Q4 2020. Contravisory Investment Management Inc. also managed to boost its holding by 15.8% in the same quarter by purchasing an additional 1,379 shares worth $362,000. Finally, Bank of New York Mellon Corp increased their position on Rambus from third-quarter holdings of 1,1186 million shares ($29.374m) to having 36k+ more shares worth $3.5m more.
Recently several equities research analysts studied Rambus’ performance: TheStreet lowered their rating from ‘b-’ to ‘c+,’ while StockNews.com issued a hold rating on March 16th. Susquehanna increased its price objective towards Rambus from $36 to $60 and gave it a “positive” rating on Feb 3rd this year.
Deutsche Bank Aktiengesellschaft upgraded Rambus’ stock target price from $34 to $45 in another report on Jan 30th this year. Finally – Rosenblatt Securities reaffirmed that Rambus was still a ‘buy’, with their latest price target being set at $60 last April.
Rambus’s market cap currently sits at around $5.35bn with a PE ratio of -352.97 and beta value standing at roughly 1.32%—the firm opened with a share value trading at $49.42 last Tuesday morning. At the same time, Rambus reported revenue statistics of $122.37m for the quarter ending 6th Feb, down from analyst’s consensus estimates of $151.93m, with an average rating of ‘Moderate Buy’ and a consensus price target on Bloomberg at $51.20.
Despite falling short of analysts’ projected earnings per share (EPS) of $0.41 with actual EPS coming at only $0.14 for Q4 in 2020, Rambus had a positive return on equity (ROE) percentage hovering around 21.35%. On the downside however, Rambus unfortunately suffered a negative net profit margin standing at -3.15% last year which could be cause of concern yet profitability remains strong or moderately favourable overall. Furthermore, contrary to what makes up its contemporaries’ rising share values and market cap, Rambus Inc.—the firm behind those foundational IP chips—has seen it all this quarter having been both bought and sold by hedge funds such as Contravisory Investment Management Inc., Bank of New York Mellon Corp among other institutional investors seeking potentionally profitable opportunities along promising equities lines.