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Lam Research (NASDAQ:LRCX) Stock Price Down 7% - Here's What Happened

Lam Research logo with Computer and Technology background

Key Points

  • Lam Research Corporation's stock price fell 7% to around $99.86 during mid-day trading, with a significant drop in trading volume, down 24% from its average.
  • Several analysts have adjusted their price targets for Lam Research, with TD Securities lowering their target to $100 while Oppenheimer and Argus raised theirs to $120, reflecting mixed sentiments about the stock's future performance.
  • The company has reported strong financial results, exceeding revenue estimates with $5.17 billion for the last quarter and a return on equity of 58.17%, suggesting robust growth despite current stock price declines.
  • Need better tools to track Lam Research? Try 5 Weeks of MarketBeat All Access for $5. Start Portfolio Tracking Now.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares dropped 7% during mid-day trading on Friday . The company traded as low as $99.42 and last traded at $99.86. Approximately 9,080,994 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 11,923,195 shares. The stock had previously closed at $107.38.

Analysts Set New Price Targets

LRCX has been the subject of a number of research reports. TD Securities cut their price objective on Lam Research from $110.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Summit Insights cut Lam Research from a "buy" rating to a "hold" rating in a report on Thursday, July 31st. Oppenheimer raised their target price on Lam Research from $110.00 to $120.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Argus raised their target price on Lam Research from $105.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Raymond James Financial raised their target price on Lam Research from $90.00 to $110.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Seven analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $107.09.

Read Our Latest Analysis on LRCX

Lam Research Stock Down 7.3%

The company has a quick ratio of 1.55, a current ratio of 2.21 and a debt-to-equity ratio of 0.38. The company has a market cap of $126.02 billion, a P/E ratio of 23.94, a price-to-earnings-growth ratio of 1.38 and a beta of 1.65. The company has a fifty day moving average of $97.24 and a 200 day moving average of $83.73.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data 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 58.17% and a net margin of 29.07%. The company had revenue of $5.17 billion during the quarter, compared to analyst estimates of $4.99 billion. During the same quarter in the previous year, the company posted $1.03 earnings per share. Lam Research's revenue was up 33.6% compared to the same quarter last year. On average, research analysts anticipate that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 9th. Investors of record on Wednesday, June 18th were issued a $0.23 dividend. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $0.92 annualized dividend and a dividend yield of 0.9%. Lam Research's payout ratio is presently 22.12%.

Institutional Trading of Lam Research

Several large investors have recently modified their holdings of the company. Manchester Global Management UK Ltd bought a new stake in shares of Lam Research in the second quarter worth $21,457,000. Meiji Yasuda Asset Management Co Ltd. lifted its position in Lam Research by 75.8% during the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 44,853 shares of the semiconductor company's stock valued at $4,366,000 after purchasing an additional 19,340 shares in the last quarter. Meridiem Capital Partners LP lifted its position in Lam Research by 331.8% during the second quarter. Meridiem Capital Partners LP now owns 296,553 shares of the semiconductor company's stock valued at $28,866,000 after purchasing an additional 227,877 shares in the last quarter. Militia Capital Partners LP purchased a new position in Lam Research during the second quarter valued at $681,000. Finally, Modern Wealth Management LLC purchased a new position in Lam Research during the second quarter valued at $382,000. Institutional investors own 84.61% of the company's stock.

Lam Research Company Profile

(Get Free Report)

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.

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