As of Friday close, Rambus Inc.’s (NASDAQ:RMBS) stock was up $0.7, moving up 1.37 percent to $51.76. The average number of shares traded per day over the past five days has been 1,121,120 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.54 fall in that time frame. In the last twenty days, the average volume was 1,679,825, while in the previous 50 days, it was 1,552,598.
Since last month, RMBS stock retreated -11.81%. Shares of the company fell to $48.51 on 08/01/23, the lowest level in the past month. A 52-week high of $68.54 was reached on 05/30/23 after having rallying from a 52-week low of $23.84. Since the beginning of this year, RMBS’s stock price has risen by 44.50% or $15.94, and marked a new high 29 times. However, the stock has declined by -24.48% since its 52-week high.
RMBS stock investors should be aware that Rambus Inc. (RMBS) stock had its last reported insider trading activity 3 days ago on Aug 16. STANG ERIC B, the Director of the company, disposed of 8,538 shares for $53.25 on Aug 16. It resulted in a $454,654 divestment by the insider. Seraphin Luc sold 4,556 shares at an average price of $49.39 on May 15. The insider now owns 255,332 shares following the transaction. On May 08, President and CEO Seraphin Luc sold 12,500 shares at $47.98 apiece. The transaction was valued at $599,752.
Valuation Metrics
Right now, Rambus Inc. (RMBS) has a P/E ratio of about 30.46. The stock’s beta is 1.33. Besides these, the trailing price-to-sales (P/S) ratio of 11.37, the price-to-book (PB) ratio of 5.97, and the price-to-cash flow ratio of 27.28 may also be considered.
Financial Health
In the three months ended June 29, Rambus Inc.’s quick ratio stood at 5.00, while its current ratio was 5.30, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 75.30% percent. In the year ended June 29, EBITDA margin amounted to 27.96%, whereas operating margins totaled 5.80%. Based on annual data, RMBS earned $347.21 million in gross profit and brought in $454.79 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -3.00%. Return on equity (ROE) for the past 12 months was 23.40%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. RMBS’s revenue fell -1.59% to $113.76 million during the quarter, while net income inched up to $119.23 million. While analysts expected Rambus Inc. to report $0.39 quarterly earnings, the actual figure was $1.78 per share, beating the consensus estimate by 356.40%. During the quarter, the company generated $25.44 million in EBITDA. The liabilities of Rambus Inc. were 181.56 million at the end of its most recent quarter ended June 29, and its total debt was $31.26 million. The value of shareholders’ equity is $109.13 million.
Technical Picture
This quick technical analysis looks at Rambus Inc.’s (RMBS) price momentum. With a historical volatility rate of 53.21%, the RSI 9-day stood at 39.84% on 18 August.
With respect to its five-day moving average, the current Rambus Inc. price is down by -1.03% percent or -$0.54. At present, RMBS shares trade -14.49% below its 20-day simple moving average and +13.68% percent above its 100-day simple moving average. However, the stock is currently trading approximately -19.16% below its SMA50 and +71.62% above its SMA200.
Stochastic coefficient K was 30.27% and Stochastic coefficient D was 30.73%, while ATR was 2.42. Given the Stochastic reading of 44.83% for the 14-day period, the RSI (14) reading has been calculated as 40.12%. As of today, the MACD Oscillator reading stands at -0.03, while the 14-day reading stands at -0.77.
Analyst Ratings
Jefferies upgraded its rating on Rambus Inc. (NASDAQ: RMBS) to a Buy in a note to investors on May 18, 2023. The analysts firm previously had a Hold rating on the stock.Rambus Inc. (RMBS) has been rated Buy by analysts. According to 0 brokerage firms, RMBS is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Rambus Inc. stock as buy, with 6 recommending it as overweight.
With a median target price of $70.00, the current consensus forecast for the stock is $65.00 – $75.00. Based on these forecasts, analysts predict Rambus Inc. (RMBS) will achieve an average price target of $69.83.
