Lam Research (NASDAQ:LRCX) Releases Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Lam Research reported a quarterly EPS of $1.26, exceeding analysts' expectations by $0.05, with a net margin of 29.07% and return on equity of 58.17%.
• The company's stock fell 2.6% to $141.25 following the earnings report, despite having a market cap of $178.12 billion.
• Lam Research increased its quarterly dividend from $0.23 to $0.26, reflecting a 0.7% yield with a payout ratio of 25.00%.

Lam Research (NASDAQ:LRCX - Get Free Report) posted its quarterly earnings results on Wednesday. The semiconductor company reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.05, Zacks reports. Lam Research had a net margin of 29.07% and a return on equity of 58.17%.

Lam Research Stock Down 2.6%

NASDAQ:LRCX traded down $3.79 during trading hours on Wednesday, reaching $141.25. The company's stock had a trading volume of 15,880,402 shares, compared to its average volume of 11,922,129. The company has a market cap of $178.12 billion, a price-to-earnings ratio of 33.95, a price-to-earnings-growth ratio of 1.75 and a beta of 1.84. Lam Research has a one year low of $56.32 and a one year high of $153.70. The business's 50-day moving average is $120.69 and its 200-day moving average is $98.08. The company has a debt-to-equity ratio of 0.38, a current ratio of 2.21 and a quick ratio of 1.55.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Wednesday, September 24th were issued a $0.26 dividend. This is a boost from Lam Research's previous quarterly dividend of $0.23. This represents a $1.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Wednesday, September 24th. Lam Research's dividend payout ratio is currently 25.00%.

Insider Transactions at Lam Research

In other Lam Research news, SVP Vahid Vahedi sold 52,190 shares of the company's stock in a transaction dated Monday, October 13th. The shares were sold at an average price of $138.90, for a total transaction of $7,249,191.00. Following the completion of the sale, the senior vice president directly owned 251,047 shares in the company, valued at $34,870,428.30. This represents a 17.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.31% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently bought and sold shares of the company. Strategic Wealth Investment Group LLC bought a new position in shares of Lam Research during the second quarter worth $29,000. Morse Asset Management Inc increased its stake in Lam Research by 1.3% in the 2nd quarter. Morse Asset Management Inc now owns 23,870 shares of the semiconductor company's stock valued at $2,324,000 after buying an additional 300 shares during the last quarter. Security National Bank of SO Dak increased its stake in Lam Research by 4.0% in the 2nd quarter. Security National Bank of SO Dak now owns 10,335 shares of the semiconductor company's stock valued at $1,006,000 after buying an additional 395 shares during the last quarter. Brown Financial Advisors increased its stake in Lam Research by 3.1% in the 2nd quarter. Brown Financial Advisors now owns 13,297 shares of the semiconductor company's stock valued at $1,294,000 after buying an additional 403 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its stake in Lam Research by 20.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,921 shares of the semiconductor company's stock valued at $382,000 after buying an additional 669 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

LRCX has been the topic of a number of research reports. KeyCorp upped their price target on shares of Lam Research from $105.00 to $115.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 15th. Erste Group Bank initiated coverage on shares of Lam Research in a research note on Thursday, August 14th. They issued a "buy" rating on the stock. Argus upped their price target on shares of Lam Research from $105.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Needham & Company LLC upped their price target on shares of Lam Research from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Finally, Hsbc Global Res raised shares of Lam Research to a "hold" rating in a research note on Tuesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $128.04.

Lam Research Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.