Rambus (RMBS) Reaches New 52-Week Low After Earnings Miss

Rambus Inc. (NASDAQ:RMBS) hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $7.30 and last traded at $8.06, with a volume of 88360 shares. The stock had previously closed at $8.53.

The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.23). The firm had revenue of $59.80 million during the quarter, compared to analyst estimates of $100.00 million. Rambus had a positive return on equity of 8.45% and a negative net margin of 22.63%. The business’s revenue was down 39.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.19 earnings per share.

RMBS has been the topic of a number of research analyst reports. Zacks Investment Research raised Rambus from a “hold” rating to a “buy” rating and set a $14.00 price target on the stock in a research note on Saturday, August 4th. ValuEngine lowered Rambus from a “sell” rating to a “strong sell” rating in a research note on Monday, October 8th. BidaskClub lowered Rambus from a “sell” rating to a “strong sell” rating in a research note on Tuesday, July 17th. Roth Capital lowered their price target on Rambus from $18.00 to $13.00 and set a “buy” rating on the stock in a research note on Tuesday, October 23rd. Finally, Deutsche Bank lowered their price target on Rambus from $16.00 to $13.00 and set a “buy” rating on the stock in a research note on Tuesday. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $14.80.

In related news, Vice Chairman Charles Kissner sold 5,896 shares of Rambus stock in a transaction that occurred on Tuesday, October 2nd. The stock was sold at an average price of $10.59, for a total transaction of $62,438.64. Following the transaction, the insider now owns 33,347 shares in the company, valued at $353,144.73. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 3.20% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. lifted its position in Rambus by 5.5% during the second quarter. BlackRock Inc. now owns 14,820,822 shares of the semiconductor company’s stock worth $185,853,000 after buying an additional 768,641 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Rambus by 8.7% during the second quarter. Dimensional Fund Advisors LP now owns 5,005,233 shares of the semiconductor company’s stock worth $62,768,000 after buying an additional 399,358 shares in the last quarter. Dalton Greiner Hartman Maher & Co. lifted its position in Rambus by 6.4% during the third quarter. Dalton Greiner Hartman Maher & Co. now owns 1,487,747 shares of the semiconductor company’s stock worth $16,231,000 after buying an additional 89,623 shares in the last quarter. Bank of New York Mellon Corp lifted its position in Rambus by 0.8% during the second quarter. Bank of New York Mellon Corp now owns 1,483,269 shares of the semiconductor company’s stock worth $18,601,000 after buying an additional 12,232 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its position in Rambus by 3.9% during the first quarter. Principal Financial Group Inc. now owns 865,392 shares of the semiconductor company’s stock worth $11,623,000 after buying an additional 32,096 shares in the last quarter. Hedge funds and other institutional investors own 80.47% of the company’s stock.

The stock has a market capitalization of $919.95 million, a P/E ratio of 17.88, a P/E/G ratio of 1.17 and a beta of 0.15. The company has a debt-to-equity ratio of 0.16, a current ratio of 3.53 and a quick ratio of 3.49.

Rambus Company Profile (NASDAQ:RMBS)

Rambus Inc provides semiconductor products in South Korea and internationally. The company operates through Memory and Interfaces, Security, and Other segments. It focuses on the design, development, and manufacturing through partnerships and licensing of technology and solutions related to memory and interfaces; and design, development, deployment, and licensing of technologies for chip, system and in-field application security, anti-counterfeiting, smart ticketing, and mobile payments.

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