Lam Research (NASDAQ:LRCX) Shares Gap Up on Analyst Upgrade

Lam Research Co. (NASDAQ:LRCXGet Free Report)’s stock price gapped up before the market opened on Wednesday after StockNews.com upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $922.73, but opened at $948.84. Lam Research shares last traded at $957.35, with a volume of 107,612 shares trading hands.

Other research analysts have also recently issued reports about the company. Wells Fargo & Company raised their price objective on Lam Research from $930.00 to $980.00 and gave the company an “equal weight” rating in a research note on Tuesday, April 2nd. Deutsche Bank Aktiengesellschaft started coverage on Lam Research in a research note on Thursday, April 11th. They set a “hold” rating and a $1,000.00 price objective on the stock. Citigroup raised their target price on Lam Research from $975.00 to $1,025.00 and gave the stock a “buy” rating in a research note on Thursday, April 25th. UBS Group raised their target price on Lam Research from $1,130.00 to $1,150.00 and gave the stock a “buy” rating in a research note on Thursday, April 25th. Finally, Jefferies Financial Group started coverage on Lam Research in a research note on Monday, May 13th. They issued a “buy” rating and a $1,100.00 target price on the stock. Six analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. Based on data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and an average price target of $959.62.

Check Out Our Latest Analysis on LRCX

Insider Activity

In other news, Director Abhijit Y. Talwalkar sold 882 shares of Lam Research stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $972.03, for a total transaction of $857,330.46. Following the completion of the transaction, the director now directly owns 10,541 shares in the company, valued at $10,246,168.23. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, CAO Christina Corrreia sold 647 shares of the business’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $972.03, for a total value of $628,903.41. Following the completion of the transaction, the chief accounting officer now directly owns 5,541 shares in the company, valued at approximately $5,386,018.23. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Abhijit Y. Talwalkar sold 882 shares of the business’s stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $972.03, for a total transaction of $857,330.46. Following the completion of the transaction, the director now owns 10,541 shares of the company’s stock, valued at $10,246,168.23. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 7,489 shares of company stock worth $6,978,065. Insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Hedge funds have recently added to or reduced their stakes in the company. Tactive Advisors LLC grew its position in Lam Research by 5.7% in the 1st quarter. Tactive Advisors LLC now owns 408 shares of the semiconductor company’s stock worth $396,000 after purchasing an additional 22 shares during the period. Cambridge Trust Co. grew its position in Lam Research by 34.2% in the 1st quarter. Cambridge Trust Co. now owns 200 shares of the semiconductor company’s stock worth $194,000 after purchasing an additional 51 shares during the period. Pathway Financial Advisers LLC bought a new stake in Lam Research in the 1st quarter worth approximately $854,000. Soltis Investment Advisors LLC bought a new stake in Lam Research in the 1st quarter worth approximately $5,972,000. Finally, Cetera Advisors LLC grew its position in Lam Research by 181.2% in the 1st quarter. Cetera Advisors LLC now owns 9,584 shares of the semiconductor company’s stock worth $9,312,000 after purchasing an additional 6,176 shares during the period. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.84 and a current ratio of 2.82. The firm has a market cap of $127.04 billion, a P/E ratio of 35.74, a P/E/G ratio of 3.23 and a beta of 1.46. The business’s 50-day simple moving average is $935.37 and its 200 day simple moving average is $868.21.

Lam Research’s stock is set to split on Thursday, October 3rd. The 10-1 split was announced on Tuesday, May 21st. The newly minted shares will be distributed to shareholders after the market closes on Wednesday, October 2nd.

Lam Research (NASDAQ:LRCXGet Free Report) last issued its quarterly earnings data on Wednesday, April 24th. The semiconductor company reported $7.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.26 by $0.53. The firm had revenue of $3.79 billion during the quarter, compared to the consensus estimate of $3.72 billion. Lam Research had a net margin of 25.35% and a return on equity of 45.96%. The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $6.99 EPS. As a group, equities analysts predict that Lam Research Co. will post 29.67 earnings per share for the current year.

Lam Research Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 10th. Investors of record on Tuesday, June 18th will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 0.82%. The ex-dividend date of this dividend is Tuesday, June 18th. Lam Research’s dividend payout ratio is currently 29.42%.

Lam Research declared that its Board of Directors has authorized a stock repurchase program on Tuesday, May 21st that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the semiconductor company to buy up to 8.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its stock is undervalued.

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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