Rambus Inc (RMBS) CFO Desmond Lynch Sells 7,837 Shares
Desmond Lynch, Senior Vice President and Chief Financial Officer of Rambus Inc (NASDAQ:RMBS), has sold 7,837 shares of the company on March 11, 2024, according to a recent SEC filing. The transaction was executed at an average price of $62.18 per share, resulting in a total value of $487,218.66.
Rambus Inc is a technology company that specializes in semiconductor and IP products, spanning memory and interfaces to security, smart sensors, and lighting. The company's innovative solutions are integral to the performance and security of electronics that are foundational to the modern world.
Over the past year, Desmond Lynch has sold a total of 16,202 shares of Rambus Inc and has not made any purchases of the stock. This latest transaction continues a pattern of insider sales at the company, with a total of 23 insider sells and no insider buys occurring over the same period.
On the valuation front, Rambus Inc's shares were trading at $62.18 on the day of the insider's sale, giving the company a market capitalization of $6.825 billion. The price-earnings ratio of the company stands at 20.95, which is lower than the industry median of 29.405 and also below the company's historical median price-earnings ratio.
According to the GuruFocus Value chart, Rambus Inc has a price-to-GF-Value ratio of 1.36, with a GF Value of $45.82. This indicates that the stock 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 provided by Morningstar analysts.
The recent insider sell by Desmond Lynch may provide investors with insight into the current sentiment of high-level executives within Rambus Inc, especially when considered alongside the broader trend of insider transactions over the past year.
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.
This article first appeared on GuruFocus.
