Lam Research (NASDAQ:LRCX) Shares Up 0.2% After Strong Earnings

Lam Research Co. (NASDAQ:LRCX)’s stock price shot up 0.2% on Wednesday following a stronger than expected earnings report. The company traded as high as $73.46 and last traded at $73.17. 3,317,607 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 11,133,337 shares. The stock had previously closed at $73.00.

The semiconductor company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.05. Lam Research had a net margin of 25.68% and a return on equity of 48.71%. The company had revenue of $4.17 billion during the quarter, compared to analyst estimates of $4.06 billion. During the same quarter in the prior year, the business earned $6.85 earnings per share. The business’s quarterly revenue was up 19.7% compared to the same quarter last year.

Lam Research Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 1st. Shareholders of record on Tuesday, September 17th were paid a dividend of $0.23 per share. The ex-dividend date of this dividend was Tuesday, September 17th. This represents a $0.92 dividend on an annualized basis and a yield of 1.18%. Lam Research’s dividend payout ratio (DPR) is 31.72%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on LRCX. Wells Fargo & Company reduced their price target on shares of Lam Research from $88.00 to $85.00 and set an “equal weight” rating on the stock in a research report on Thursday. B. Riley reduced their price target on shares of Lam Research from $132.50 to $105.00 and set a “buy” rating on the stock in a research report on Wednesday. StockNews.com downgraded shares of Lam Research from a “buy” rating to a “hold” rating in a research report on Friday, October 11th. Morgan Stanley reduced their price target on shares of Lam Research from $81.00 to $77.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Finally, Stifel Nicolaus restated a “buy” rating and issued a $100.00 price target (down from $105.00) on shares of Lam Research in a research report on Thursday. Six research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $97.03.

Insider Buying and Selling

In related news, CAO Christina Correia sold 647 shares of the firm’s stock in a transaction that occurred on Tuesday, October 1st. The shares were sold at an average price of $817.51, for a total transaction of $528,928.97. Following the completion of the sale, the chief accounting officer now directly owns 4,267 shares in the company, valued at approximately $3,488,315.17. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.29% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

A number of institutional investors have recently bought and sold shares of the business. Fortitude Family Office LLC boosted its stake in shares of Lam Research by 16.7% in the 2nd quarter. Fortitude Family Office LLC now owns 63 shares of the semiconductor company’s stock valued at $67,000 after purchasing an additional 9 shares in the last quarter. Thomasville National Bank boosted its stake in shares of Lam Research by 1.5% in the 2nd quarter. Thomasville National Bank now owns 812 shares of the semiconductor company’s stock valued at $865,000 after purchasing an additional 12 shares in the last quarter. Ignite Planners LLC boosted its stake in shares of Lam Research by 2.8% in the 2nd quarter. Ignite Planners LLC now owns 445 shares of the semiconductor company’s stock valued at $484,000 after purchasing an additional 12 shares in the last quarter. U.S. Capital Wealth Advisors LLC boosted its stake in shares of Lam Research by 3.7% in the 2nd quarter. U.S. Capital Wealth Advisors LLC now owns 335 shares of the semiconductor company’s stock valued at $357,000 after purchasing an additional 12 shares in the last quarter. Finally, RFP Financial Group LLC lifted its position in Lam Research by 52.2% during the 2nd quarter. RFP Financial Group LLC now owns 35 shares of the semiconductor company’s stock worth $37,000 after buying an additional 12 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Trading Up 1.4 %

The company’s 50-day moving average is $79.44 and its 200-day moving average is $89.84. The firm has a market cap of $100.68 billion, a price-to-earnings ratio of 26.96, a P/E/G ratio of 1.89 and a beta of 1.47. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.00 and a current ratio of 2.97.

About Lam Research

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.