Rambus Inc. (NASDAQ:RMBS) is one of the stocks that are taking the center stage today as the company shares are trading 3.45% or 0.41 points lower from last closing price of $11.9, reaching $11.49 at last check. So what’s going on with RMBS shares anyway? The price has dropped in 3 of the last 5 days and is up 13.77% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -107,173 shares, and in total 228227 shares valued at $2.622 million were seen changing hands compared with 335400 shares valued at $3.991 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the RMBS stock is near its bottom.
Rambus Inc. (RMBS) shares have notched a 3-month gain of about 13.77%, but has still advanced 55.15% year to date. By comparison, the stock sank -11.98% over the past 12 months, while it jumped 4.85% over the 1 month. The company’s market cap is around $1.3B, with its short interest ratio standing at 4.71%.
In the current trading session for RMBS, the stock witnessed two major price actions, it rose to a high of $11.74 and was down as much as $11.47 at one point. The high recorded is very low when compared to their 52-week high which is $7.17. The 52-week high is now at -16.42 distance from current price. Their recent low of $13.73 represents a 60.04% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for RMBS is $14.22, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Rambus Inc. earned $-1.38 per share in the trailing 12 months and has a P/E ratio of -8.33. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 8.06 and lower compared to the sector’s average of 13.27. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. RMBS also has P/S multiple of 5.4. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 9.03x.
The company recorded an interesting insider sale transaction by the Director on Jun 03, 2019. A Securities and Exchanges Commission filings show that Ellis Thomas Fisher sold a total of 750 RMBS shares that day for a sum of around $8,543. The filings show that the insider now retains 50,054 shares, currently worth $575,120. Rambus Inc. (RMBS) insiders have acquired 84,936 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 3,424 shares. In total, individual insiders traded 88,360 shares in the business, which makes up 14.118% of 625,877 shares that were traded over a year. In the past 12 months, insiders have purchased 473,598 shares while the seller parted with 152,279 shares.
RMBS‘s last price was up 14.65% as compared to the average trading price of 50 days recorded at $10.02 while enlarging the period to 200 trading days, the average closing price was $11.44. At present, there are 109.65 million in the total number of common shares owned by the public and among those 109.4 million shares have been available to trade. The percentage of shares being held by the company management was 0.8% while institutions stake was 80.9%. The company has generated negative returns on equity over the last 12 months (-14.4%). It managed to keep its gross profit margin at 79.2% over the past 12 months.
When assessing the full upside of the RMBS stock, there is another set of technicals that should be looked into and considered. Its 0.31% gain from moving average of $11.45 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.74 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Rambus Inc. — 3 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $12.7833 on shares of Rambus Inc. (NASDAQ:RMBS), which corresponds to 11.26% upside potential than its current market price of $11.49 and implies potential despite the recent drop in the price. However, their current target price has fallen from $13.5875 a month ago and is down handily from the consensus target of $14 a quarter ago.
In the last five years, the EPS of the company has been roughly -37.1%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 15%. The revenue of the company has retreated at an average annualized rate of about -3.2 over the last five years. The company recently recorded an increase of 4.3%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards RMBS stock. Marshall Wace LLP added position in the company after it grew 50% or 2,964 shares of its common stock. The hedge fund now owns 4,446 shares worth $51,085, SEC documents show. Metropolitan Life Insurance Co NY cut assets in the stock as 36206.07 shares have been sold, reducing its stake by -4.4% to 34,613 shares which are currently valued at $397,703. In addition, BlueMountain Capital Management LLC recently reported that it now owns 25,216 shares making a total of $289,732 based on the recent price. This refelects a change of 46.7% in their ownership.