Lam Research (NASDAQ:LRCX) Stock Rating Lowered by Summit Insights

Key Points

• Lam Research was downgraded from a "buy" to a "hold" rating by Summit Insights, signaling a more cautious outlook on the stock's performance.
• Despite the downgrade, a majority of analysts maintain a positive outlook, with 17 buy ratings and one strong buy rating, and an average target price of $103.24.
• The company's recent earnings report showed a significant revenue increase of 33.6% year-over-year, with a reported EPS of $1.33, exceeding analyst expectations.

Lam Research (NASDAQ:LRCX - Get Free Report) was downgraded by equities research analysts at Summit Insights from a "buy" rating to a "hold" rating in a research note issued on Thursday, MarketBeat Ratings reports.

LRCX has been the topic of several other research reports. TD Cowen lowered their target price on Lam Research from $110.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, April 24th. Oppenheimer reissued an "outperform" rating and issued a $110.00 price objective (up from $80.00) on shares of Lam Research in a research note on Tuesday, June 17th. TD Securities cut their target price on shares of Lam Research from $110.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, April 24th. UBS Group increased their price target on shares of Lam Research from $95.00 to $120.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Finally, Deutsche Bank Aktiengesellschaft set a $70.00 target price on Lam Research and gave the company a "hold" rating in a research note on Thursday, April 24th. Eight research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $106.05.

Lam Research Price Performance

LRCX traded down $1.16 on Thursday, hitting $93.68. 2,343,501 shares of the company were exchanged, compared to its average volume of 11,917,489. Lam Research has a fifty-two week low of $56.32 and a fifty-two week high of $102.59. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.64 and a current ratio of 2.45. The firm has a market capitalization of $119.82 billion, a P/E ratio of 22.43, a price-to-earnings-growth ratio of 1.40 and a beta of 1.68. The business's fifty day moving average is $93.65 and its 200 day moving average is $82.23.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The semiconductor company reported $1.33 EPS for the quarter, topping the consensus estimate of $1.21 by $0.12. Lam Research had a return on equity of 59.69% and a net margin of 29.07%. The business had revenue of $5.17 billion for the quarter, compared to analyst estimates of $4.99 billion. During the same quarter in the previous year, the company earned $1.03 EPS. The company's quarterly revenue was up 33.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Lam Research will post 3.71 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. FMR LLC raised its position in shares of Lam Research by 1,032.6% during the 4th quarter. FMR LLC now owns 40,031,194 shares of the semiconductor company's stock valued at $2,891,453,000 after acquiring an additional 36,496,689 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Lam Research by 950.5% during the fourth quarter. Ameriprise Financial Inc. now owns 34,543,915 shares of the semiconductor company's stock worth $2,495,128,000 after purchasing an additional 31,255,726 shares during the period. Invesco Ltd. lifted its position in shares of Lam Research by 909.5% in the 4th quarter. Invesco Ltd. now owns 16,858,135 shares of the semiconductor company's stock worth $1,217,663,000 after buying an additional 15,188,173 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Lam Research by 1,067.0% in the 4th quarter. Northern Trust Corp now owns 15,869,244 shares of the semiconductor company's stock valued at $1,146,235,000 after buying an additional 14,509,407 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Lam Research by 6,383.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,574,691 shares of the semiconductor company's stock valued at $980,500,000 after buying an additional 13,365,317 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.