Lam Research (NASDAQ:LRCX) Trading Down 1.8% - What's Next?

Key Points

• Lam Research Corporation's shares declined 1.8%, trading at $94.92 amidst a volume drop of 76% from the average session volume.
• Recent analyst reports show mixed ratings, with some increasing target prices and giving "buy" ratings while others downgraded the stock to a "hold" rating.
• The company reported a quarterly earnings beat with $1.33 EPS, surpassing the consensus estimate of $1.21, and a year-over-year revenue increase of 33.6%.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares fell 1.8% during mid-day trading on Wednesday . The company traded as low as $94.27 and last traded at $94.92. 2,841,609 shares were traded during mid-day trading, a decline of 76% from the average session volume of 11,958,992 shares. The stock had previously closed at $96.68.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on LRCX. TD Cowen increased their target price on shares of Lam Research from $100.00 to $125.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Citigroup increased their target price on shares of Lam Research from $108.00 to $113.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Summit Insights lowered shares of Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, July 31st. Bank of America decreased their target price on shares of Lam Research from $110.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday, April 16th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $115.00 target price (up previously from $90.00) on shares of Lam Research in a research report on Tuesday, June 24th. 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, Lam Research has an average rating of "Moderate Buy" and a consensus price target of $107.09.

Lam Research Stock Down 0.6%

The business has a fifty day moving average of $94.56 and a 200 day moving average of $82.67. The stock has a market cap of $122.96 billion, a price-to-earnings ratio of 23.13, a P/E/G ratio of 1.29 and a beta of 1.65. 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 (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The semiconductor company reported $1.33 EPS for the quarter, topping 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 firm had revenue of $5.17 billion for the quarter, compared to the consensus estimate of $4.99 billion. During the same quarter in the prior year, the company posted $1.03 earnings per share. The firm's revenue was up 33.6% on a year-over-year basis. On average, equities 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. Investors of record on Wednesday, June 18th were issued 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 1.0%. Lam Research's dividend payout ratio is currently 22.12%.

Hedge Funds Weigh In On Lam Research

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Lam Research by 6.9% in the first quarter. Vanguard Group Inc. now owns 129,152,102 shares of the semiconductor company's stock valued at $9,389,358,000 after purchasing an additional 8,364,375 shares during the period. Ameriprise Financial Inc. boosted its holdings in shares of Lam Research by 950.5% during the 4th quarter. Ameriprise Financial Inc. now owns 34,543,915 shares of the semiconductor company's stock worth $2,495,128,000 after buying an additional 31,255,726 shares during the period. Invesco Ltd. boosted its holdings in shares of Lam Research by 2.8% during the 1st quarter. Invesco Ltd. now owns 17,330,771 shares of the semiconductor company's stock worth $1,259,947,000 after buying an additional 472,636 shares during the period. Northern Trust Corp boosted its holdings in shares of Lam Research by 1,067.0% during the 4th quarter. Northern Trust Corp now owns 15,869,244 shares of the semiconductor company's stock worth $1,146,235,000 after buying an additional 14,509,407 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Lam Research by 6,383.5% during 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 worth $980,500,000 after buying an additional 13,365,317 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.

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