Rambus Inc (RMBS, Financial), a premier silicon IP and chip provider making data faster and safer, has reported an insider transaction involving SVP, COO Xianzhi Fan. According to a recent SEC filing, the insider sold 35,770 shares of the company on March 4, 2024.
Over the past year, Xianzhi Fan has sold a total of 91,987 shares of Rambus Inc and has not made any purchases of the stock. This latest transaction continues a trend of insider selling at the company, with a total of 22 insider sells and no insider buys reported over the same period.
On the valuation front, Rambus Inc shares were trading at $62.72 on the day of the insider's recent sale, giving the company a market cap of $6.806 billion. The price-earnings ratio stands at 21.03, which is lower than the industry median of 29.72 and also below the company's historical median price-earnings ratio.
The stock's current price also reflects a significant premium compared to the GuruFocus Value (GF Value) of $45.41, with a price-to-GF-Value ratio of 1.38, indicating that Rambus Inc is significantly overvalued based on its GF Value.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates from Morningstar analysts.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
