Lam Research (NASDAQ:LRCX) Shares Down 2.7% – Here’s Why

Shares of Lam Research Co. (NASDAQ:LRCX) dropped 2.7% during trading on Wednesday . The company traded as low as $73.62 and last traded at $73.69. Approximately 1,651,537 shares traded hands during trading, a decline of 85% from the average daily volume of 11,209,188 shares. The stock had previously closed at $75.70.

Wall Street Analyst Weigh In

LRCX has been the topic of a number of research analyst reports. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of Lam Research in a research note on Thursday, October 24th. Cantor Fitzgerald restated a “neutral” rating and set a $100.00 target price on shares of Lam Research in a research report on Thursday, October 24th. TD Cowen boosted their price objective on shares of Lam Research from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Thursday, August 1st. BNP Paribas raised shares of Lam Research to a “hold” rating in a report on Thursday, October 24th. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a $100.00 target price (down previously from $105.00) on shares of Lam Research in a research report on Thursday, October 24th. Seven investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $97.03.

Lam Research Stock Down 2.3 %

The stock has a market cap of $95.20 billion, a price-to-earnings ratio of 23.90, a P/E/G ratio of 1.20 and a beta of 1.48. The company has a current ratio of 2.53, a quick ratio of 1.74 and a debt-to-equity ratio of 0.53. The stock’s 50-day moving average price is $77.42 and its 200-day moving average price is $88.34.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, October 23rd. The semiconductor company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.05. The firm had revenue of $4.17 billion during the quarter, compared to analyst estimates of $4.06 billion. Lam Research had a net margin of 26.02% and a return on equity of 50.60%. The business’s revenue was up 19.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.85 EPS. On average, sell-side analysts expect that Lam Research Co. will post 3.52 earnings per share for the current year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 8th. Shareholders of record on Wednesday, December 11th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 1.24%. The ex-dividend date of this dividend is Wednesday, December 11th. Lam Research’s payout ratio is currently 29.74%.

Insider Buying and Selling at Lam Research

In other news, CAO Christina Correia sold 647 shares of the stock in a transaction that occurred on Tuesday, October 1st. The stock was 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 owns 4,267 shares of the company’s stock, valued at approximately $3,488,315.17. This 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 this hyperlink. Company insiders own 0.29% of the company’s stock.

Institutional Trading of Lam Research

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LRCX. Van ECK Associates Corp lifted its stake in Lam Research by 1,394.7% in the third quarter. Van ECK Associates Corp now owns 16,081,071 shares of the semiconductor company’s stock worth $13,123,440,000 after acquiring an additional 15,005,178 shares during the period. Foster Victor Wealth Advisors LLC lifted its stake in Lam Research by 994.1% in the third quarter. Foster Victor Wealth Advisors LLC now owns 232,901 shares of the semiconductor company’s stock worth $190,066,000 after acquiring an additional 211,614 shares during the period. Swedbank AB purchased a new stake in Lam Research in the first quarter worth $192,668,000. Vanguard Group Inc. lifted its position in Lam Research by 1.2% during the first quarter. Vanguard Group Inc. now owns 11,856,661 shares of the semiconductor company’s stock valued at $11,519,576,000 after buying an additional 144,914 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its position in Lam Research by 5.1% during the first 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 buying an additional 142,903 shares during the period. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.