Rambus Inc. (NASDAQ:RMBS) finished Wednesday with a subtraction of -$1.27 to close at $50.17, a downside of -2.47 percent. An average of 1,400,960 shares of common stock have been traded in the last five days. There was a fall of -$3.79 in the past week, and it reached a new high 46 times over the past 12 months. The last 20 days have seen an average of 1,770,390 shares traded, while the 50-day average volume stands at 1,626,288.
RMBS stock has decreased by -17.94% in the last month. The company shares reached their 1-month lowest point of $48.51 on 08/01/23. With the stock rallying to its 52-week high on 05/30/23, shares of the company touched a low of $23.84 and a high of $68.54 in 52 weeks. It has reached a new high 29 times so far this year and achieved 40.06% or $14.35 in price. In spite of this, the price is down -26.80% from the 52-week high.
Insider Transactions
RMBS stock investors should be aware that Rambus Inc. (RMBS) stock had its last reported insider trading activity 87 days ago on May 15. In this transaction, the insider spent $225,017. President and CEO, Seraphin Luc, disposed of 12,500 shares at a price of $47.98 on May 08. The insider now owns more than $599,752 worth of shares. Prior to that, President and CEO Seraphin Luc went on to Sale 12,500 shares at $44.83 each on May 01. An amount of $560,371 was transacted.
Valuation Metrics
Rambus Inc. (RMBS) has a trailing price-to-earnings (P/E) ratio of 29.53. The stock’s beta is 1.31. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 11.63, the price-to-book (PB) ratio at 7.13, and the price-to-cash flow ratio at 25.94.
Financial Health
The quick ratio of Rambus Inc. for the three months ended June 29 was 4.90, and the current ratio was 5.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $347.21 million compared to revenue of $454.79 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Rambus Inc.’s return on assets was -1.40%.
Earnings Surprise
For the three-month period that ended June 29, Rambus Inc. had $210.44 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $168.88 million in the quarter, while revenues of $3.28 million were grew 79.26%. The analyst consensus anticipated Rambus Inc.’s latest quarter earnings to come in at $0.39 per share, but it turned out to be $1.78, a 356.40% surprise. For the quarter, EBITDA amounted to $25.44 million. Shareholders own equity worth $109.13 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Rambus Inc. (RMBS) price momentum. RSI 9-day as of the close on 09 August was 23.00%, suggesting the stock is oversold, with historical volatility in this time frame at 65.98%.
As of today, RMBS’s price is $52.54 -7.02% or -$3.79 from its 5-day moving average. RMBS is currently trading -18.29% lower than its 20-day SMA and +11.74% higher than its 100-day SMA. However, the stock’s current price level is -24.58% below the SMA50 and +82.30% above the SMA200.
The stochastic %K and %D were 21.78% and 28.58%, respectively, and the average true range (ATR) was 2.78. With the 14-day stochastic at 11.08% and the average true range at 2.75, the RSI (14) stands at 30.12%. The stock has reached -3.42 on the 9-day MACD Oscillator while the 14-day reading was at -5.21.
Analyst Ratings
Jefferies upgraded Rambus Inc. (NASDAQ: RMBS) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Rambus Inc. (RMBS) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RMBS, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.
What is RMBS’s price target for the next 12 months?
Analysts predict a range of price targets between $65.00 and $75.00, with a median target of $70.00. Taking a look at these predictions, the average price target given by analysts for Rambus Inc. (RMBS) stock is $69.80.
