On October 5, 2023, it was reported that Migdal Insurance & Financial Holdings Ltd. reduced its holdings in Rambus Inc. (NASDAQ:RMBS) by 69.8% during the second quarter of the year. According to their latest Form 13F filing with the Securities & Exchange Commission, the institutional investor sold 3,347 shares of the semiconductor company’s stock, leaving them with a total of 1,449 shares. The value of their remaining shares was estimated at $91,000.
Rambus (NASDAQ:RMBS) recently released its quarterly earnings data on July 31st. The semiconductor company surpassed analysts’ consensus estimates by reporting earnings per share of $1.51 for the quarter, compared to the expected $0.39. This significant difference of $1.12 demonstrates the strong performance of Rambus during this period. Moreover, Rambus achieved a net margin of 40.38% and a return on equity of 20.86%. However, the company’s revenue for the quarter was $119.80 million, falling short of analysts’ expectations set at $137.99 million. This resulted in a decline of 1.1% compared to the same quarter in the previous year when Rambus posted earnings per share of $0.37.
Despite this slight decrease in revenue, equities analysts predict that Rambus Inc.’s earnings per share for the current year will be approximately $1.41.
In other news related to Rambus Inc., Chief Operating Officer (COO) Xianzhi Sean Fan sold 17,309 shares in a transaction that occurred on August 29th at an average price of $54.99 per share amounting to a total value of $951,821.91.The COO now directly owns 168,223 shares in the company which are valued at $9,250,582.77. The sale was disclosed in a document filed with the SEC and more information can be found at the provided link. Insiders currently own 1.00% of the company’s stock.
Overall, these recent developments offer insights into Rambus Inc.’s financial performance and activities. It is crucial for investors and analysts to consider these details when evaluating the company and making informed decisions about its future prospects.
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Hedge Funds Increase Positions in Rambus as Investors Remain Optimistic but Analysts Provide Mixed Opinions
In recent months, there have been notable changes in the positions of various hedge funds in Rambus, a semiconductor company. Creative Planning, for instance, increased its holdings in the company by 25.7% during the second quarter. This resulted in Creative Planning now owning 30,101 shares of Rambus’ stock valued at $1,932,000 after purchasing an additional 6,154 shares in the last quarter. Similarly, Bank Julius Baer & Co. Ltd Zurich acquired a new position in Rambus worth $584,301,000 during the second quarter. Bailard Inc. also bought a new position in Rambus worth $227,000 during the same period.
Furthermore, Teacher Retirement System of Texas bolstered its stake in Rambus by 7.4% during the second quarter as well. The institution now owns 42,558 shares of Rambus’ stock valued at $2,731,000 after acquiring an additional 2,920 shares in the last quarter. Lastly, Diversified Trust Co increased its stake in the semiconductor company by 1.0% during the same time frame and currently owns 20,388 shares of Rambus’ stock valued at $1,308,000.
It is worth mentioning that institutional investors hold approximately 86.15% of Rambus’ stock.
Turning our attention to NASDAQ RMBS on Thursday’s trading session; it opened at $57.10 per share. The company’s 50-day moving average price stands at $55.12 and its 200-day moving average price is recorded at $55.36 per share. In terms of its market performance over a year period: it experienced a low of $24.81 and reached a high of $68.54 which indicates significant volatility within this timeframe.
Currently,Rambus Inc.’s market capitalization amounts to around $6.23 billion and the company’s stock is traded at a price-to-earnings (P/E) ratio of 33.79. The P/E/G ratio, which measures the relationship between the Price to Earnings ratio and the growth rate of a company, stands at 2.64, suggesting that Rambus’ stock may be slightly overvalued. Additionally, Rambus has a beta of 1.28.
Research analysts have weighed in on Rambus’ stock as well. StockNews.com initiated coverage on Rambus and assigned it a “hold” rating in a report published on August 17th. Meanwhile, Rosenblatt Securities reiterated a “buy” rating on Rambus with a price target set at $73.00 per share in their report released on September 19th.On July 31st, TheStreet upgraded its rating for Rambus from “c+” to “b+” based on their analysis. Jefferies Financial Group also expressed optimism regarding Rambus by increasing its target price from $65.00 to $66.00 and labeling it a “buy” rating in their research report issued on August 1st.In another positive development,Susquehanna raised their target price for Rambus from $60.00 to $75.00 and rated the stock as “positive” in their research note published on July 21st.
Taking into account these various ratings and market sentiments, data from Bloomberg indicates that Rambus presently holds an average rating of “Moderate Buy,” with an average target price of $60 according to analysts’ consensus.
In conclusion, recent activity by hedge funds indicates renewed interest in holding positions in Rambus, further strengthening investor confidence in the semiconductor company’s future performance.However,research analysts have provided mixed opinions regarding the current state of affairs with some recommending a hold while others suggesting buying opportunities. It remains to be seen how Rambus will fare in the coming months as market conditions evolve and new developments emerge within the industry.
