Rambus (NASDAQ:RMBS) Trading Down 7.7% After Insider Selling

Rambus, Inc. (NASDAQ:RMBS) shares were down 7.7% during trading on Wednesday following insider selling activity. The company traded as low as $146.35 and last traded at $145.17. Approximately 707,454 shares changed hands during trading, a decline of 71% from the average daily volume of 2,454,287 shares. The stock had previously closed at $157.23.

Specifically, EVP Xianzhi Sean Fan sold 37,914 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $151.69, for a total transaction of $5,751,174.66. Following the sale, the executive vice president directly owned 168,358 shares in the company, valued at $25,538,225.02. This represents a 18.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Analysts Set New Price Targets

RMBS has been the subject of several research analyst reports. Jefferies Financial Group lifted their price objective on Rambus from $120.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, April 28th. Rosenblatt Securities increased their target price on Rambus from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, April 28th. Robert W. Baird cut Rambus from an “outperform” rating to a “neutral” rating and set a $120.00 price target for the company. in a report on Tuesday, April 28th. Weiss Ratings downgraded shares of Rambus from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, March 10th. Finally, Evercore reissued an “outperform” rating and set a $172.00 price objective on shares of Rambus in a report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $130.43.

Rambus Stock Performance

The stock has a market capitalization of $15.76 billion, a P/E ratio of 69.80 and a beta of 1.79. The stock has a 50-day simple moving average of $115.30 and a 200 day simple moving average of $105.06.

Rambus (NASDAQ:RMBS) last released its earnings results on Monday, April 27th. The semiconductor company reported $0.63 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.02. The company had revenue of $180.19 million during the quarter, compared to the consensus estimate of $179.94 million. Rambus had a return on equity of 17.41% and a net margin of 31.90%. Equities analysts predict that Rambus, Inc. will post 2.44 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Krilogy Financial LLC grew its position in shares of Rambus by 3.8% during the 1st quarter. Krilogy Financial LLC now owns 2,238 shares of the semiconductor company’s stock worth $193,000 after buying an additional 81 shares during the period. Oak Grove Capital LLC boosted its stake in Rambus by 1.3% in the fourth 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 last quarter. Northwestern Mutual Investment Management Company LLC grew its holdings in Rambus by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 24,085 shares of the semiconductor company’s stock worth $2,213,000 after acquiring an additional 103 shares during the period. Balefire LLC grew its holdings in Rambus by 3.8% during the 1st quarter. Balefire LLC now owns 2,932 shares of the semiconductor company’s stock worth $252,000 after acquiring an additional 108 shares during the period. Finally, Ashton Thomas Private Wealth LLC raised its position in shares of Rambus by 3.3% during the 4th quarter. Ashton Thomas Private Wealth LLC now owns 3,445 shares of the semiconductor company’s stock valued at $317,000 after acquiring an additional 110 shares during the last quarter. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Rambus Company Profile

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.