Zacks Investment Research cut shares of Lam Research (NASDAQ:LRCX) from a hold rating to a sell rating in a report released on Friday.
According to Zacks, “Lam Research continues to suffer from oversupply and overcapacity of memory chips. This remains a major negative. Further, sluggish wafer spending in NAND and foundry market is hurting the company. Notably, shares of the company have underperformed the industry it belongs to over a year. Nevertheless, Lam Research continues to benefit from the strong performance of its memory segment. Also, continued momentum across its logic segment remains positive. Further, the company remains optimistic about its strong position in China. Estimates have been stable lately ahead of the company’s Q2 earnings release. However, cyclicality and the current U.S.-China trade war are headwinds in the semiconductor industry. Further, foreign currency fluctuation risks are major concerns for the company.”
A number of other equities research analysts have also commented on the company. Deutsche Bank reiterated a hold rating and issued a $170.00 price target (down previously from $230.00) on shares of Lam Research in a research report on Monday, October 1st. DA Davidson reduced their price target on Lam Research to $225.00 in a research report on Monday, October 15th. ValuEngine lowered Lam Research from a hold rating to a sell rating in a research report on Friday, January 4th. Stifel Nicolaus set a $279.00 price target on Lam Research and gave the company a buy rating in a research report on Tuesday, October 16th. Finally, Citigroup reduced their price target on Lam Research from $216.00 to $177.00 and set a buy rating on the stock in a research report on Tuesday, September 25th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of Buy and an average target price of $220.47.
Shares of LRCX stock opened at $144.11 on Friday. The firm has a market cap of $22.35 billion, a P/E ratio of 8.06, a PEG ratio of 0.84 and a beta of 1.38. Lam Research has a twelve month low of $122.64 and a twelve month high of $234.88. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.00 and a current ratio of 2.66.
Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Tuesday, October 16th. The semiconductor company reported $3.36 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.14. The business had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.31 billion. Lam Research had a return on equity of 49.80% and a net margin of 21.26%. Lam Research’s quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.46 EPS. Equities research analysts expect that Lam Research will post 14.37 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 26th. Stockholders of record on Wednesday, December 5th were paid a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 3.05%. The ex-dividend date was Tuesday, December 4th. Lam Research’s dividend payout ratio is 24.62%.
Large investors have recently made changes to their positions in the company. Morgan Stanley raised its stake in Lam Research by 83.1% during the 2nd quarter. Morgan Stanley now owns 1,530,120 shares of the semiconductor company’s stock worth $264,481,000 after buying an additional 694,440 shares during the period. Baird Financial Group Inc. raised its stake in Lam Research by 50.5% during the 2nd quarter. Baird Financial Group Inc. now owns 6,880 shares of the semiconductor company’s stock worth $1,189,000 after buying an additional 2,308 shares during the period. Central Bank & Trust Co. raised its stake in Lam Research by 0.3% during the 3rd quarter. Central Bank & Trust Co. now owns 33,016 shares of the semiconductor company’s stock worth $5,008,000 after buying an additional 111 shares during the period. Advent Capital Management DE acquired a new position in Lam Research during the 3rd quarter worth approximately $3,793,000. Finally, First Hawaiian Bank acquired a new position in Lam Research during the 3rd quarter worth approximately $239,000. 88.89% of the stock is currently owned by institutional investors.
About Lam Research
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition product for copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatment; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition (ALD) products; and VECTOR plasma-enhanced CVD ALD products.
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