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

Lam Research Co. (NASDAQ:LRCXGet Free Report) 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.

A number of other research analysts have also weighed in on the company. Jefferies Financial Group began coverage on Lam Research in a report on Monday, May 13th. They issued a “buy” rating and a $1,100.00 target price on the stock. Needham & Company LLC restated a “buy” rating and issued a $1,030.00 target price on shares of Lam Research in a report on Thursday, April 25th. Wells Fargo & Company raised their target price on Lam Research from $930.00 to $980.00 and gave the company an “equal weight” rating in a report on Tuesday, April 2nd. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $1,100.00 price target on shares of Lam Research in a research report on Thursday, April 25th. Finally, Stifel Nicolaus increased their price target on Lam Research from $950.00 to $1,050.00 and gave the company a “buy” rating in a research report on Tuesday, April 16th. Six analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $959.62.

Check Out Our Latest Stock Analysis on LRCX

Insider Activity

In related news, SVP Seshasayee Varadarajan sold 5,500 shares of Lam Research stock in a transaction on Monday, March 18th. The stock was sold at an average price of $922.41, for a total transaction of $5,073,255.00. Following the completion of the sale, the senior vice president now owns 22,095 shares of the company’s stock, valued at $20,380,648.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In related news, SVP Seshasayee Varadarajan sold 5,500 shares of Lam Research stock in a transaction on Monday, March 18th. The stock was sold at an average price of $922.41, for a total transaction of $5,073,255.00. Following the completion of the sale, the senior vice president now owns 22,095 shares of the company’s stock, valued at $20,380,648.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Patrick J. Lord sold 60 shares of Lam Research stock in a transaction dated Monday, April 29th. The stock was sold at an average price of $921.54, for a total value of $55,292.40. Following the sale, the executive vice president now directly owns 4,454 shares of the company’s stock, valued at approximately $4,104,539.16. The disclosure for this sale can be found here. Over the last three months, insiders sold 7,489 shares of company stock worth $6,978,065. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of Lam Research by 1.2% in the 1st quarter. Vanguard Group Inc. now owns 11,856,661 shares of the semiconductor company’s stock valued at $11,519,576,000 after acquiring an additional 144,914 shares during the last quarter. Fisher Asset Management LLC lifted its stake in shares of Lam Research by 3.0% in the 4th quarter. Fisher Asset Management LLC now owns 2,973,516 shares of the semiconductor company’s stock valued at $2,329,037,000 after acquiring an additional 86,721 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Lam Research by 5.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,959,151 shares of the semiconductor company’s stock valued at $2,875,023,000 after acquiring an additional 142,903 shares during the last quarter. Morgan Stanley lifted its stake in shares of Lam Research by 3.2% in the 3rd quarter. Morgan Stanley now owns 1,857,918 shares of the semiconductor company’s stock valued at $1,164,490,000 after acquiring an additional 56,824 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Lam Research in the 4th quarter valued at about $1,414,111,000. Institutional investors own 84.61% of the company’s stock.

Lam Research Stock Performance

The company has a market cap of $125.80 billion, a PE ratio of 35.39, a P/E/G ratio of 3.18 and a beta of 1.46. The company has a current ratio of 2.82, a quick ratio of 1.84 and a debt-to-equity ratio of 0.56. The business has a fifty day moving average of $935.19 and a 200-day moving average of $868.86.

Lam Research shares are going to split on the morning of 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 announced its quarterly earnings results 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. Lam Research had a return on equity of 45.96% and a net margin of 25.35%. The company had revenue of $3.79 billion for the quarter, compared to the consensus estimate of $3.72 billion. During the same quarter in the previous year, the business earned $6.99 EPS. Lam Research’s revenue was down 2.0% compared to the same quarter last year. Equities research analysts anticipate that Lam Research Co. will post 29.67 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 10th. Shareholders of record on Tuesday, June 18th will be issued a dividend of $2.00 per share. The ex-dividend date is Tuesday, June 18th. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.83%. Lam Research’s dividend payout ratio (DPR) is 29.42%.

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

About Lam Research

(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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