Lam Research (NASDAQ:LRCX) Trading 2.3% Higher - Here's Why

Key Points

• Lam Research Corporation's shares rose 2.3% to $101.43, with trading volume significantly lower at approximately 1.79 million shares compared to its average daily volume of nearly 11.93 million shares.
• Analysts generally have a positive outlook for Lam Research, with multiple firms raising their price targets, leading to a consensus target price of $107.09 and a "Moderate Buy" rating for the company.
• The company reported a strong earnings performance, achieving $1.33 EPS for the quarter, surpassing expectations, and experiencing a 33.6% increase in revenue year-over-year.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) were up 2.3% during trading on Friday . The stock traded as high as $101.26 and last traded at $101.43. Approximately 1,789,484 shares changed hands during trading, a decline of 85% from the average daily volume of 11,930,590 shares. The stock had previously closed at $99.15.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on LRCX shares. Citigroup upped their target price on Lam Research from $108.00 to $113.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $115.00 price objective (up from $90.00) on shares of Lam Research in a report on Tuesday, June 24th. KeyCorp boosted 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. Mizuho increased their target price on Lam Research from $115.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Finally, Bank of America cut their price target on shares of Lam Research from $110.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Seven equities research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.09.

Lam Research Stock Up 2.7%

The business's 50-day moving average price is $95.10 and its 200-day moving average price is $82.89. 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 firm has a market capitalization of $130.30 billion, a PE ratio of 24.46, a price-to-earnings-growth ratio of 1.24 and a beta of 1.65.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its 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 net margin of 29.07% and a return on equity of 58.17%. The firm had revenue of $5.17 billion for the quarter, compared to the consensus estimate of $4.99 billion. During the same quarter last year, the firm posted $1.03 EPS. The business's quarterly revenue was up 33.6% on a year-over-year basis. As a group, equities research analysts predict that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 9th. Investors of record on Wednesday, June 18th were given a dividend of $0.23 per share. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $0.92 dividend on an annualized basis and a yield of 0.9%. Lam Research's dividend payout ratio (DPR) is 22.12%.

Institutional Trading of Lam Research

A number of hedge funds have recently modified their holdings of LRCX. Ameriprise Financial Inc. increased its holdings in Lam Research by 950.5% during the 4th quarter. Ameriprise Financial Inc. now owns 34,543,915 shares of the semiconductor company's stock valued at $2,495,128,000 after purchasing an additional 31,255,726 shares in the last quarter. Northern Trust Corp raised its position in shares of Lam Research by 1,067.0% during the fourth quarter. Northern Trust Corp now owns 15,869,244 shares of the semiconductor company's stock worth $1,146,235,000 after purchasing an additional 14,509,407 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Lam Research by 6,383.5% in 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 acquiring an additional 13,365,317 shares in the last quarter. Janus Henderson Group PLC bought a new position in shares of Lam Research during the 4th quarter worth approximately $792,161,000. Finally, Vanguard Group Inc. increased its stake in Lam Research by 6.9% in the 1st quarter. Vanguard Group Inc. now owns 129,152,102 shares of the semiconductor company's stock valued at $9,389,358,000 after buying an additional 8,364,375 shares during the last quarter. Institutional investors 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.

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