Lam Research (NASDAQ:LRCX) Shares Gap Down - Here's Why

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $101.07, but opened at $97.72. Lam Research shares last traded at $97.77, with a volume of 4,094,281 shares changing hands.

Analyst Ratings Changes

LRCX has been the subject of a number of recent analyst reports. Citigroup reaffirmed a "buy" rating and issued a $108.00 price objective (up previously from $87.00) on shares of Lam Research in a report on Monday, July 7th. Oppenheimer reiterated an "outperform" rating and issued a $110.00 target price (up previously from $80.00) on shares of Lam Research in a research report on Tuesday, June 17th. Wells Fargo & Company lifted their target price on shares of Lam Research from $75.00 to $95.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Jefferies Financial Group lifted their target price on shares of Lam Research from $95.00 to $100.00 and gave the company a "buy" rating in a research report on Friday, March 28th. Finally, KeyCorp lifted their target price on shares of Lam Research from $105.00 to $115.00 and gave the company an "overweight" rating in a research report on Tuesday. Seven research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $99.14.

Lam Research Stock Performance

The firm's 50 day moving average is $90.60 and its two-hundred day moving average is $80.62. The stock has a market capitalization of $128.84 billion, a PE ratio of 28.06, a P/E/G ratio of 1.42 and a beta of 1.68. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.64 and a current ratio of 2.45.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results on Wednesday, April 23rd. The semiconductor company reported $1.04 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.04. Lam Research had a net margin of 27.18% and a return on equity of 53.21%. The firm had revenue of $4.72 billion for the quarter, compared to the consensus estimate of $4.64 billion. During the same period in the prior year, the firm earned $7.79 EPS. The firm's revenue for the quarter was up 24.4% on a year-over-year basis. As a group, research analysts predict that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 9th. Shareholders of record on Wednesday, June 18th were given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.91%. The ex-dividend date of this dividend was Wednesday, June 18th. Lam Research's dividend payout ratio is presently 25.63%.

Institutional Investors Weigh In On Lam Research

A number of large investors have recently modified their holdings of LRCX. One Charles Private Wealth Services LLC boosted its holdings in shares of Lam Research by 843.4% in the 4th quarter. One Charles Private Wealth Services LLC now owns 4,000 shares of the semiconductor company's stock valued at $289,000 after buying an additional 3,576 shares in the last quarter. Brighton Jones LLC grew its position in shares of Lam Research by 1,032.4% in the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company's stock valued at $1,025,000 after buying an additional 12,936 shares during the last quarter. Harbour Investments Inc. purchased a new position in shares of Lam Research in the 4th quarter valued at $206,000. Creative Financial Designs Inc. ADV grew its position in shares of Lam Research by 3,711.9% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 2,554 shares of the semiconductor company's stock valued at $184,000 after buying an additional 2,487 shares during the last quarter. Finally, Tocqueville Asset Management L.P. grew its position in shares of Lam Research by 896.8% in the 4th quarter. Tocqueville Asset Management L.P. now owns 20,015 shares of the semiconductor company's stock valued at $1,446,000 after buying an additional 18,007 shares during the last quarter. 84.61% of the stock is owned by hedge funds and other 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.