According to Bloomberg Ratings, shares of Rambus Inc. (NASDAQ:RMBS) have received a consistent “Buy” rating from six brokerage firms that cover the stock. All six analysts have given the stock a positive outlook. In addition, these analysts have provided an average twelve-month price objective of $60.00 based on their reports over the last year.
In recent news, COO Xianzhi Sean Fan sold 17,309 shares of Rambus’ stock on August 29th. The shares were sold at an average price of $54.99, resulting in a total value of $951,821.91. After this transaction, Fan now owns 168,223 shares of Rambus’ stock with an approximate value of $9,250,582.77. This sale was disclosed in a legal filing with the Securities & Exchange Commission and is accessible through the SEC website. It is important to note that insiders hold a mere 1.00% stake in the company’s stock.
Turning our attention to financial results, Rambus (NASDAQ:RMBS) released its earnings report on July 31st. For the quarter, the semiconductor company reported earnings per share (EPS) of $1.51- surpassing analysts’ consensus estimates by an impressive $1.12 EPS. However,the company’s revenue for this period amounted to $119.80 million; slightly lower than what analysts had predicted ($137.99m). Rambus showcased a return on equity of 20.86% and a net margin of 40 .38%. These figures show a year-over-year decrease in revenue by 1 .1%. In comparison to the previous year’s quarter when earnings per share were posted at $0 .37 albeit slightly lower.Pay careful attention to equities analysts who anticipate that Rambus will post earnings per share of 1 .41 for the present fiscal year.
The positive consensus rating given by analysts to Rambus (NASDAQ:RMBS) indicates an optimistic outlook for the company. This stems from the impressive earnings results reported and a predicted strong performance moving forward. Investors and potential stakeholders in Rambus should take note of this information as they make decisions regarding their investment portfolios.
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Positive Outlook and Institutional Interest in Rambus Inc. (RMBS) Reflects Growth Potential in Semiconductor Sector
On September 22, 2023, various research analysts shared their insights on the stock of Rambus Inc. (RMBS). Jefferies Financial Group raised their target price for the company from $65.00 to $66.00 and bestowed a “buy” rating upon it in a research note released on August 1st. Similarly, StockNews.com initiated coverage on Rambus in their research report on August 17th, assigning a “hold” rating to the stock. Susquehanna also expressed optimism by increasing their price target from $60.00 to $75.00 and giving Rambus a “positive” rating in a report published on July 21st.
Rosenblatt Securities reaffirmed their “buy” rating and set a target price of $73.00 for shares of Rambus in a research note issued on Tuesday. TheStreet also got involved in the positive sentiment by upgrading Rambus’ shares from a “c+” rating to a “b+” rating in a research report released on July 31st.
Moving onto institutional investors’ activities related to RMBS stock, American Century Companies Inc. made an entry into Rambus during the first quarter, acquiring holdings valued at approximately $230,000. Cambridge Investment Research Advisors Inc., meanwhile, boosted its stake in Rambus by an impressive 78.6% during the same periodcurrently owning 16,230 shares of the semiconductor company’s stock valued at around $518,000 after acquiring an additional 7,142 shares.
MetLife Investment Management LLC demonstrated faith in Rambus by growing its stake by 56.5% during the first quarter and now holding about 59,397 shares valued at approximately $1,894,000 after adding another 21,446 shares to its portfolio.
Additionally, BlackRock Inc., one of the largest asset managers globally, increased its stake in Rambus by 0.3% during the first quarter, with holdings amounting to a substantial 17,199,468 shares valued at $548,492,000 after acquiring an additional 47,422 shares.
Cibc World Market Inc. entered the scene as well in the first quarter, initiating a new position in Rambus worth about $575,000.
It is worth noting that institutional investors and hedge funds own a significant portion86.15%of Rambus’ stock.
As of Friday’s opening, September 22nd., RMBS stock commenced trading at $53.01 per share. The stock’s 50-day moving average was reported as $56.19, while its 200-day moving average stood at $54.54. With a market capitalization of $5.78 billion and a price-to-earnings ratio of 31.37, Rambus demonstrates its strong presence in the semiconductor industry.
Furthermore, Rambus sports a price-to-earnings-growth (PEG) ratio of 2.62 along with a beta of 1.30an indicator of heightened volatility compared to the overall market.
Looking back over the past year, Rambus experienced a fluctuation between its lowest point of $23.84 and its highest level reaching $68.54a testament to the company’s growth potential and ability to navigate challenging market conditions.
Overall, these recent research reports and institutional investment activities reflect the positive sentiment surrounding Rambus as analysts raise their target prices on the company’s stock while institutions acquire significant positions in anticipation of future growth opportunities within the semiconductor sector.
