Rambus Inc (RMBS, Financial), a premier silicon IP and chip provider making data faster and safer, recently saw a significant insider sell by its President and CEO, Luc Seraphin. According to a recent SEC Filing, the insider sold 15,000 shares of the company on April 2, 2024.
Over the past year, Luc Seraphin has been active in the market with regards to the company's shares. The insider has sold a total of 142,056 shares and has not made any purchases. This latest transaction continues the trend of insider selling at Rambus Inc, with a total of 27 insider sells and no insider buys occurring over the past year.
On the date of the recent sell, Rambus Inc shares were trading at $59.93, valuing the company at a market cap of $6.453 billion. The stock's price-earnings ratio stood at 19.83, which is below both the industry median of 33.01 and the company's historical median price-earnings ratio, suggesting a lower valuation relative to its peers and its own trading history.
The stock's current price also reflects its standing in relation to the GuruFocus Value (GF Value). With a share price of $59.93 and a GF Value of $46.89, Rambus Inc has a price-to-GF-Value ratio of 1.28, indicating that the stock is considered Modestly Overvalued according to GuruFocus's valuation model.
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.
The insider trend for Rambus Inc suggests a cautious approach from insiders, with selling activity outweighing any buying over the past year. This could be a point of interest for investors monitoring insider behaviors as a signal for their investment decisions.
Investors and analysts often keep a close eye on insider transactions as they can provide insights into the insider's view of the company's value and future prospects. While the reasons behind an insider's decision to sell can vary and may not necessarily be indicative of the company's fundamental health, a consistent pattern of insider selling could warrant further investigation by shareholders.
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.
