Rambus Inc. (NASDAQ: RMBS) stock jumped 2.29% on Monday to $56.82 against a previous-day closing price of $55.55. With 1.76 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.5 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $57.15 whereas the lowest price it dropped to was $54.85. The 52-week range on RMBS shows that it touched its highest point at $68.54 and its lowest point at $23.84 during that stretch. It currently has a 1-year price target of $69.83. Beta for the stock currently stands at 1.29.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RMBS was up-trending over the past week, with a rise of 0.39%, but this was up by 11.28% over a month. Three-month performance dropped to -5.90% while six-month performance rose 28.90%. The stock gained 126.10% in the past year, while it has gained 58.63% so far this year. A look at the trailing 12-month EPS for RMBS yields 1.70 with Next year EPS estimates of 2.12. For the next quarter, that number is 0.41. This implies an EPS growth rate of -181.90% for this year and 19.89% for next year. EPS is expected to grow by 14.72% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -46.10%.
Float and Shares Shorts:
At present, 109.04 million RMBS shares are outstanding with a float of 108.27 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.09 million, which was 3.75% higher than short shares on Jul 30, 2023. In addition to Mr. Luc Seraphin as the firm’s CEO, Pres & Director, Mr. Desmond Lynch serves as its Sr. VP of Fin. & CFO.
Through their ownership of 89.27% of RMBS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.25% of RMBS, in contrast to 32.59% held by mutual funds. Shares owned by individuals account for 11.24%. As the largest shareholder in RMBS with 14.51% of the stake, BlackRock Fund Advisors holds 15,832,778 shares worth 15,832,778. A second-largest stockholder of RMBS, The Vanguard Group, Inc., holds 12,504,235 shares, controlling over 11.46% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in RMBS, holding 4,384,088 shares or 4.02% stake. With a 7.05% stake in RMBS, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,688,133 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.14% of RMBS stock, is the second-largest Mutual Fund holder. It holds 3,423,251 shares valued at 193.31 million. Vanguard Small Cap Index Fund holds 2.60% of the stake in RMBS, owning 2,835,846 shares worth 160.14 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, RMBS reported revenue of $121.13M and operating income of $30.06M. The EBITDA in the recently reported quarter was $33.22M and diluted EPS was $0.31.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RMBS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RMBS analysts setting a high price target of $75.00 and a low target of $65.00, the average target price over the next 12 months is $69.83. Based on these targets, RMBS could surge 32.0% to reach the target high and rise by 14.4% to reach the target low. Reaching the average price target will result in a growth of 22.9% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded RMBS stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 8,538 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 528,081 while 564,568 shares were sold.