Lam Research (NASDAQ:LRCX) Trading 2.7% Higher - Here's Why

Key Points

• Lam Research's stock price increased by 2.7%, trading at $98.57 after a previous close of $95.94, despite a 76% decline in trading volume compared to its average session.
• Analysts have mixed views, with TD Securities lowering their price target from $110 to $100 while maintaining a "buy" rating, and KeyCorp raising their target from $105 to $115, reflecting an overall consensus of a "Moderate Buy".
• The company reported earnings of $1.33 per share for the last quarter, exceeding estimates, and revenue growth of 33.6% compared to the previous year, highlighting its robust financial performance in the semiconductor industry.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price rose 2.7% during mid-day trading on Thursday . The company traded as high as $100.19 and last traded at $98.57. Approximately 2,809,931 shares changed hands during trading, a decline of 76% from the average daily volume of 11,953,756 shares. The stock had previously closed at $95.94.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Argus raised their target price on Lam Research from $105.00 to $120.00 and gave the company a "buy" rating in a report on Friday, August 1st. TD Securities lowered their target price on Lam Research from $110.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, April 24th. 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 report on Thursday, July 31st. Bank of America lowered their target price on Lam Research from $110.00 to $90.00 and set a "buy" rating for the company in a report on Wednesday, April 16th. Finally, The Goldman Sachs Group assumed coverage on Lam Research in a report on Thursday, July 10th. They set a "buy" rating and a $115.00 target price for the company. Seven investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $107.09.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.38, a current ratio of 2.21 and a quick ratio of 1.55. The stock has a 50 day simple moving average of $95.53 and a two-hundred day simple moving average of $83.04. The company has a market cap of $130.15 billion, a PE ratio of 24.46, a PEG ratio of 1.32 and a beta of 1.65.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The semiconductor company reported $1.33 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $4.99 billion. During the same quarter in the previous year, the business earned $1.03 earnings per share. The firm's revenue for the quarter was up 33.6% on a year-over-year basis. Equities analysts predict that Lam Research Corporation will post 3.71 EPS 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 paid a $0.23 dividend. The ex-dividend date was Wednesday, June 18th. This represents a $0.92 dividend on an annualized basis and a yield of 0.9%. Lam Research's payout ratio is currently 22.12%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. BankPlus Wealth Management LLC increased its holdings in shares of Lam Research by 2.0% in the second quarter. BankPlus Wealth Management LLC now owns 5,248 shares of the semiconductor company's stock valued at $511,000 after purchasing an additional 105 shares during the period. ORG Partners LLC increased its holdings in shares of Lam Research by 7.3% in the second quarter. ORG Partners LLC now owns 1,676 shares of the semiconductor company's stock valued at $162,000 after purchasing an additional 114 shares during the period. Quotient Wealth Partners LLC increased its holdings in shares of Lam Research by 2.1% in the second quarter. Quotient Wealth Partners LLC now owns 5,437 shares of the semiconductor company's stock valued at $529,000 after purchasing an additional 114 shares during the period. Fairvoy Private Wealth LLC increased its holdings in shares of Lam Research by 3.0% in the second quarter. Fairvoy Private Wealth LLC now owns 4,185 shares of the semiconductor company's stock valued at $407,000 after purchasing an additional 120 shares during the period. Finally, Rosenberg Matthew Hamilton increased its holdings in shares of Lam Research by 16.0% in the second quarter. Rosenberg Matthew Hamilton now owns 869 shares of the semiconductor company's stock valued at $85,000 after purchasing an additional 120 shares during the period. Institutional investors and hedge funds own 84.61% of the company's stock.

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.