The stock price of Rambus Inc. (NASDAQ: RMBS) has dropped by -3.96 compared to previous close of 45.06. Despite this, the company has seen a gain of 5.10% in its stock price over the last five trading days. zacks.com reported 2024-10-14 that Despite the near-term challenges, RMBS is pivoting to capitalize on emerging market opportunities, particularly in the AI and data center sectors.
Is It Worth Investing in Rambus Inc. (NASDAQ: RMBS) Right Now?
Rambus Inc. (NASDAQ: RMBS) has a higher price-to-earnings ratio of 20.67x compared to its average ratio. RMBS has 36-month beta value of 1.18. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 1 as “overweight,” 2 as “hold,” and 0 as “sell.”
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The public float for RMBS is 106.95M, and currently, short sellers hold a 2.73% ratio of that float. The average trading volume of RMBS on October 16, 2024 was 1.90M shares.
RMBS’s Market Performance
The stock of Rambus Inc. (RMBS) has seen a 5.10% increase in the past week, with a 8.77% rise in the past month, and a -27.37% fall in the past quarter. The volatility ratio for the week is 4.15%, and the volatility levels for the past 30 days are at 3.61% for RMBS. The simple moving average for the last 20 days is 5.61% for RMBS’s stock, with a simple moving average of -21.98% for the last 200 days.
Analysts’ Opinion of RMBS
Jefferies, on the other hand, stated in their research note that they expect to see RMBS reach a price target of $65, previously predicting the price at $45. The rating they have provided for RMBS stocks is “Hold” according to the report published on May 18th, 2023.
Rosenblatt gave a rating of “Buy” to RMBS, setting the target price at $35 in the report published on October 14th of the previous year.
RMBS Trading at 2.84% from the 50-Day Moving Average
After a stumble in the market that brought RMBS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -43.35% of loss for the given period.
Volatility was left at 3.61%, however, over the last 30 days, the volatility rate increased by 4.15%, as shares surge +11.95% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.72% upper at present.
During the last 5 trading sessions, RMBS rose by +5.10%, which changed the moving average for the period of 200-days by -36.92% in comparison to the 20-day moving average, which settled at $40.97. In addition, Rambus Inc. saw -36.60% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RMBS starting from STANG ERIC B, who sale 6,000 shares at the price of $55.85 back on May 08 ’24. After this action, STANG ERIC B now owns 26,422 shares of Rambus Inc., valued at $335,100 using the latest closing price.
STANG ERIC B, the Director of Rambus Inc., sale 5,408 shares at $56.95 during a trade that took place back on May 07 ’24, which means that STANG ERIC B is holding 32,422 shares at $307,986 based on the most recent closing price.
Stock Fundamentals for RMBS
Current profitability levels for the company are sitting at:
- 0.44 for the present operating margin
- 0.77 for the gross margin
The net margin for Rambus Inc. stands at 0.48. The total capital return value is set at 0.18. Equity return is now at value 23.37, with 19.40 for asset returns.
Based on Rambus Inc. (RMBS), the company’s capital structure generated 0.03 points at debt to capital in total, while cash flow to debt ratio is standing at 7.01. The debt to equity ratio resting at 0.03. The interest coverage ratio of the stock is 144.33.
Currently, EBITDA for the company is 151.26 million with net debt to EBITDA at -0.57. When we switch over and look at the enterprise to sales, we see a ratio of 9.56. The receivables turnover for the company is 4.24for trailing twelve months and the total asset turnover is 0.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 7.18.
Conclusion
To put it simply, Rambus Inc. (RMBS) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
