Lam Research Corp. (LRCX) Cut to “Hold” at Zacks Investment Research
Lam Research Corp. (NASDAQ:LRCX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.
According to Zacks, “Lam Research Corp. is a leading global provider of innovative wafer fabrication equipment and services to the semiconductor industry. The company reported better-than-expected fiscal fourth quarter 2016 results with revenues and earnings surpassing our estimates. The results were driven by strong success in the areas of device architecture, process flow and advanced packaging technology inflections. The KLA acquisition is expected to expand its market and customer base, generating cash and creating value. The company has been improving on WFE market share significantly since 2013 and expects to continue making gains, going forward. At the same time, the persistent decline in the PC market, which is still the most important consumer of DRAMs, the competitive climate and currency effects remain concerns. The Brexit impact cannot be ignored either.”
LRCX has been the subject of several other research reports. RBC Capital Markets reiterated an “outperform” rating and set a $105.00 price objective on shares of Lam Research Corp. in a research report on Sunday, October 9th. Needham & Company LLC reiterated a “buy” rating and set a $105.00 price objective on shares of Lam Research Corp. in a research report on Tuesday, September 20th. Cowen and Company reiterated an “outperform” rating and set a $95.00 price objective on shares of Lam Research Corp. in a research report on Wednesday, August 31st. Citigroup Inc. increased their price objective on shares of Lam Research Corp. from $94.00 to $105.00 and gave the company a “buy” rating in a research report on Friday, July 29th. Finally, Bank of America Corp. set a $108.00 price objective on shares of Lam Research Corp. and gave the company a “buy” rating in a research report on Wednesday, August 10th. Three investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. Lam Research Corp. presently has a consensus rating of “Buy” and a consensus price target of $101.38.
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Shares of Lam Research Corp. (NASDAQ:LRCX) opened at 97.73 on Friday. The stock’s 50 day moving average is $94.37 and its 200-day moving average is $86.34. Lam Research Corp. has a 52 week low of $63.10 and a 52 week high of $102.44. The company has a market cap of $15.66 billion, a price-to-earnings ratio of 18.72 and a beta of 1.47.
Lam Research Corp. (NASDAQ:LRCX) last issued its earnings results on Wednesday, July 27th. The company reported $1.80 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.64 by $0.16. Lam Research Corp. had a net margin of 15.53% and a return on equity of 18.95%. The firm earned $1.55 billion during the quarter, compared to analyst estimates of $1.53 billion. During the same quarter in the prior year, the business earned $1.50 earnings per share. Lam Research Corp.’s revenue for the quarter was up 4.4% on a year-over-year basis. On average, equities analysts anticipate that Lam Research Corp. will post $7.02 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Wednesday, September 28th. Investors of record on Wednesday, September 14th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date of this dividend was Monday, September 12th. Lam Research Corp.’s dividend payout ratio (DPR) is presently 22.99%.
In related news, insider Richard A. Gottscho sold 47,540 shares of Lam Research Corp. stock in a transaction that occurred on Thursday, October 6th. The shares were sold at an average price of $98.85, for a total value of $4,699,329.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.46% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP boosted its stake in Lam Research Corp. by 29.1% in the first quarter. Wellington Management Group LLP now owns 5,025,762 shares of the company’s stock worth $415,128,000 after buying an additional 1,131,843 shares during the period. University of Notre Dame DU Lac bought a new stake in Lam Research Corp. during the first quarter worth approximately $1,616,000. Geode Capital Management LLC boosted its stake in Lam Research Corp. by 3.0% in the first quarter. Geode Capital Management LLC now owns 1,345,517 shares of the company’s stock worth $110,924,000 after buying an additional 39,093 shares during the period. Nicholas Investment Partners LP boosted its stake in Lam Research Corp. by 7.9% in the first quarter. Nicholas Investment Partners LP now owns 35,538 shares of the company’s stock worth $2,935,000 after buying an additional 2,611 shares during the period. Finally, Riverhead Capital Management LLC boosted its stake in Lam Research Corp. by 24.8% in the first quarter. Riverhead Capital Management LLC now owns 131,986 shares of the company’s stock worth $10,902,000 after buying an additional 26,199 shares during the period.
Lam Research Corp. Company Profile
Lam Research Corporation is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). It operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment.
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