Rambus Reports Quarterly Earnings, Misses EPS Expectations by $0.09

Rambus Inc. (NASDAQ: RMBS) announced its quarterly earnings on November 6, 2023, reporting earnings per share (EPS) of $0.59. This figure fell short of analyst expectations, which had set the consensus estimate at $0.68, resulting in a miss of $0.09. The semiconductor company also recorded a net margin of 33.72% and a return on equity of 17.73%.

Following the announcement, shares of Rambus traded down by $0.12, reaching $113.71 during midday trading on the same day. A total of 6,716,763 shares changed hands, significantly higher than the average volume of 2,579,091 shares. Over the past year, Rambus has seen a price fluctuation, with a low of $40.12 and a high of $135.75. Currently, the company has a market capitalization of $12.24 billion and a price-to-earnings ratio of 53.89.

Recent Insider Transactions and Analyst Ratings

In a separate development, Rambus Director Eric B. Stang sold 5,000 shares of the company on November 7, 2023, at an average price of $102.35, bringing the total transaction value to approximately $511,750. Following this sale, Stang’s ownership in Rambus decreased by 17.01%, leaving him with 24,394 shares valued at around $2,496,725.90. This transaction was reported in a filing with the Securities and Exchange Commission.

Analysts have recently adjusted their ratings for Rambus. Notably, Jefferies Financial Group upgraded the company to a “strong-buy” rating on October 28, 2023. Conversely, Cfra Research downgraded Rambus from a “hold” to a “moderate sell” rating on December 15, 2023. Additionally, Wells Fargo & Company raised its price target for Rambus shares from $73.00 to $115.00, assigning an “overweight” rating in their report on October 28, 2023. Overall, the consensus rating for Rambus stands at “Buy,” with a target price of $108.14 according to MarketBeat.

Overview of Rambus

Founded in 1990 by researchers from Stanford University, Rambus is headquartered in Sunnyvale, California. The company specializes in technology licensing for semiconductor and system-level interface solutions. Initially recognized for its development of high-speed DRAM interface technology, Rambus has built a substantial patent portfolio, encompassing innovations in memory architecture, data signaling, and power management.

Today, Rambus licenses its proprietary intellectual property to semiconductor manufacturers, original equipment manufacturers (OEMs), and system integrators globally, positioning itself as a key player in the technology landscape.

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