The stock of Rambus Inc. (NASDAQ:RMBS) increased by $0.32 on Friday to finish at $53.28, up 0.60 percent. The last five days have seen an average of 883,400 shares of common stock traded. 29 times new highs were reached in the current year, with a gain of $17.46. The average number of shares traded over the last 20 days was 1,670,960, while the average volume over the last 50 days totaled 1,511,222.
RMBS stock dropped -12.61% since last month. On 08/01/23, the company’s shares reached a one-month low of $48.51. The stock touched a high of $68.54 on 05/30/23, after rallying from a low of $23.84 in 52 weeks. The price of RMBS stock has risen by 48.74% or $17.46 this year, reaching a new high 29 times. Still, the stock price is down -22.26% 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 12 days ago on Aug 16. On Aug 16, Director STANG ERIC B sold 8,538 shares at $53.25 each. This transaction resulted in the insider making $454,654. On May 15, Seraphin Luc sold 4,556 shares at a price of US$49.39. After the transaction, the insider now owns 255,332 shares. President and CEO Seraphin Luc had earlier sold 12,500 shares on May 08 for $47.98 a share. The transaction was completed for $599,752.
Valuation Metrics
Rambus Inc. (RMBS) has a trailing price-to-earnings (P/E) ratio of 31.36. Beta for the stock is 1.32. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 12.34, the price-to-book (PB) ratio of 6.15, and the price-to-cash flow ratio of 29.62.
Financial Health
For the three months ended June 29, Rambus Inc.’s quick ratio was 5.00, while its current ratio was 5.30, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 75.30% percent. Rambus Inc.’s EBITDA margin for the year ended June 29 was 27.96%, whereas its operating margin stood at 5.80% for the same period. Based on annual data, it had gross profit of $347.21 million and revenue of $454.79 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. RMBS’s return on assets (ROA) during the last 12 months has been 18.60%. There was a -3.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 23.40%.
Earnings Surprise
According to Rambus Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $119.23 million, while revenues fell by -1.59% to $113.76 million. It was predicted that Rambus Inc.’s quarterly earnings would be $1.78, but it ended up being $0.39, beating the consensus by 356.40%. EBITDA was $25.44 million for the quarter. At the end of Rambus Inc.’s most recent quarter ended June 29, its liabilities totaled 181.56 million, while its total debt was $31.26 million. Equity owned by shareholders amounts to $109.13 million.
Technical Picture
Here’s a quick look at Rambus Inc.’s (RMBS) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 46.99%, suggesting the stock is Neutral, with a 44.99% historical volatility rate.
The stochastic %K and %D were 67.53% and 74.09% respectively, while the average true range (ATR) was 2.39. Based on the 14-day stochastic reading of 54.66%, the RSI (14) reading is 45.45%. On the 9-day MACD Oscillator, the stock is at 0.82, and the 14-day reading is at 1.39.
Analyst Ratings
In its most recent analyst report, Jefferies raised its rating on Rambus Inc. (NASDAQ: RMBS) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Rambus Inc. (RMBS) an Buy rating. RMBS is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 6 others recommend it as a buy.
What is RMBS’s price target for the next 12 months?
The current consensus forecast for the stock is between $65.00 and $75.00, with a median target price of $70.00. In analyzing these forecasts, the average price target given by analysts for Rambus Inc. (RMBS) is $69.83.
