Rambus (NASDAQ:RMBS) Shares Gap Down on Disappointing Earnings

Rambus Inc. (NASDAQ:RMBS) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $55.83, but opened at $52.72. Rambus shares last traded at $51.14, with a volume of 454,436 shares changing hands.

The semiconductor company reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.09). Rambus had a net margin of 78.14% and a return on equity of 16.99%. The company had revenue of $132.10 million during the quarter, compared to analysts’ expectations of $139.00 million. During the same period last year, the firm earned $0.36 earnings per share. Rambus’s revenue was up 10.3% on a year-over-year basis.

Analyst Ratings Changes

A number of research firms have commented on RMBS. Susquehanna dropped their price objective on shares of Rambus from $75.00 to $66.00 and set a “positive” rating on the stock in a research note on Friday. Jefferies Financial Group restated a “buy” rating and issued a $75.00 price objective (up from $72.00) on shares of Rambus in a research note on Monday, May 13th. One analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $77.75.

Insider Transactions at Rambus

In other news, Director Eric B. Stang sold 5,408 shares of the business’s stock in a transaction dated Tuesday, May 7th. The shares were sold at an average price of $56.95, for a total transaction of $307,985.60. Following the transaction, the director now directly owns 32,422 shares in the company, valued at $1,846,432.90. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RMBS. SG Americas Securities LLC increased its stake in shares of Rambus by 40.5% during the fourth quarter. SG Americas Securities LLC now owns 4,157 shares of the semiconductor company’s stock worth $284,000 after acquiring an additional 1,199 shares during the period. Raymond James & Associates grew its position in Rambus by 156.0% during the fourth quarter. Raymond James & Associates now owns 32,137 shares of the semiconductor company’s stock worth $2,193,000 after buying an additional 19,582 shares during the period. Pacer Advisors Inc. grew its position in Rambus by 2,832.8% during the fourth quarter. Pacer Advisors Inc. now owns 16,160 shares of the semiconductor company’s stock worth $1,103,000 after buying an additional 15,609 shares during the period. Blue Trust Inc. grew its position in Rambus by 100.4% during the fourth quarter. Blue Trust Inc. now owns 447 shares of the semiconductor company’s stock worth $31,000 after buying an additional 224 shares during the period. Finally, Fifth Third Bancorp grew its position in Rambus by 65.8% during the fourth quarter. Fifth Third Bancorp now owns 504 shares of the semiconductor company’s stock worth $34,000 after buying an additional 200 shares during the period. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Rambus Price Performance

The firm’s 50-day simple moving average is $58.36 and its two-hundred day simple moving average is $60.06. The company has a market capitalization of $5.50 billion, a price-to-earnings ratio of 15.66 and a beta of 1.20.

About Rambus

Rambus Inc provides semiconductor products in the United States, South Korea, Singapore, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, OEMs, and hyperscalers; silicon IP, such as interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and interface IP solutions for high-speed memory and chip-to-chip digital controller IP.