Lam Research (NASDAQ:LRCX) Trading Up 3.8% After Better-Than-Expected Earnings

Lam Research Co. (NASDAQ:LRCX)’s stock price shot up 3.8% on Thursday following a stronger than expected earnings report. The company traded as high as $77.48 and last traded at $75.62. 8,247,940 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 11,203,075 shares. The stock had previously closed at $72.86.

The semiconductor company reported $0.86 earnings per share (EPS) for the quarter, beating 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 business had revenue of $4.17 billion for the quarter, compared to analyst estimates of $4.06 billion. During the same quarter in the previous year, the business earned $6.85 earnings per share. Lam Research’s revenue for the quarter was up 19.7% on a year-over-year basis.

Lam Research Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 1st. Investors 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 annualized dividend and a yield of 1.18%. Lam Research’s dividend payout ratio is currently 31.72%.

Analyst Ratings Changes

A number of research firms have issued reports on LRCX. Needham & Company LLC restated a “buy” rating and set a $100.00 price target on shares of Lam Research in a report on Thursday. Morgan Stanley cut their target price on shares of Lam Research from $81.00 to $77.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Mizuho reduced their price target on shares of Lam Research from $105.00 to $95.00 and set an “outperform” rating for the company in a report on Friday, September 20th. Wells Fargo & Company dropped their price objective on shares of Lam Research from $88.00 to $85.00 and set an “equal weight” rating on the stock in a report on Thursday. Finally, Cantor Fitzgerald restated a “neutral” rating and issued a $100.00 target price on shares of Lam Research in a research note on Thursday. Six investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $97.03.

Insider Buying and Selling at Lam Research

In other news, CAO Christina Correia sold 647 shares of the stock in a transaction dated Tuesday, October 1st. The shares were sold at an average price of $817.51, for a total value of $528,928.97. Following the completion of the sale, the chief accounting officer now owns 4,267 shares in the company, valued at $3,488,315.17. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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 modified their holdings of LRCX. Fortitude Family Office LLC grew its stake in 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 during the period. Thomasville National Bank increased its holdings in Lam Research by 1.5% during the second quarter. Thomasville National Bank now owns 812 shares of the semiconductor company’s stock worth $865,000 after buying an additional 12 shares during the last quarter. Ignite Planners LLC raised its position in Lam Research by 2.8% in the second quarter. Ignite Planners LLC now owns 445 shares of the semiconductor company’s stock worth $484,000 after acquiring an additional 12 shares during the period. U.S. Capital Wealth Advisors LLC boosted its stake in Lam Research by 3.7% in the second quarter. U.S. Capital Wealth Advisors LLC now owns 335 shares of the semiconductor company’s stock valued at $357,000 after acquiring an additional 12 shares during the last quarter. Finally, RFP Financial Group LLC grew its position in shares of Lam Research by 52.2% during the 2nd quarter. RFP Financial Group LLC now owns 35 shares of the semiconductor company’s stock valued at $37,000 after acquiring an additional 12 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

Lam Research Stock Performance

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

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.