Lam Research (NASDAQ:LRCX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Lam Research's improving WFE market, strong demand for server DRAM and increased adoption rates of 3D NAND technology will continue to drive growth for the company. Infact, the strong demand for bit growth in server DRAM and NAND will continue, driven by cloud computing and IoT, thus creating more opportunities for Lam Research in the near future. The strong success in the areas of device architecture, increasing share in the process flow and advanced packaging technology inflections are also positives. Estimates have been stable lately ahead of the company's Q4 earnings release. However, the persistent decline in the PC market, which is still the most important consumer of DRAMs, the competitive climate and currency effects remain concerns. Notably, the stock has outperformed the industry it belongs to over a 12-month period.”

LRCX has been the subject of a number of other research reports. Needham & Company LLC reiterated a “buy” rating and set a $220.00 target price (up previously from $200.00) on shares of Lam Research in a research report on Friday, October 13th. KeyCorp reiterated a “buy” rating and set a $225.00 target price on shares of Lam Research in a research report on Sunday, November 19th. BidaskClub lowered shares of Lam Research from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 2nd. B. Riley reiterated a “buy” rating and set a $250.00 target price on shares of Lam Research in a research report on Tuesday, November 14th. Finally, Berenberg Bank reiterated a “buy” rating and set a $240.00 target price on shares of Lam Research in a research report on Thursday, October 19th. Two research analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. Lam Research currently has a consensus rating of “Buy” and an average price target of $213.83.

Shares of Lam Research (NASDAQ LRCX) traded up $0.80 during trading hours on Tuesday, reaching $189.31. 3,170,057 shares of the company’s stock were exchanged, compared to its average volume of 2,599,244. The company has a debt-to-equity ratio of 0.24, a current ratio of 3.31 and a quick ratio of 2.83. The company has a market capitalization of $31,020.00, a price-to-earnings ratio of 17.29, a PEG ratio of 0.86 and a beta of 1.57. Lam Research has a 12-month low of $108.46 and a 12-month high of $219.70.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Tuesday, October 17th. The semiconductor company reported $3.46 earnings per share for the quarter, topping analysts’ consensus estimates of $3.27 by $0.19. The firm had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.46 billion. Lam Research had a net margin of 22.85% and a return on equity of 30.19%. The company’s quarterly revenue was up 51.8% on a year-over-year basis. During the same quarter last year, the business earned $1.81 earnings per share. sell-side analysts expect that Lam Research will post 14.74 EPS for the current year.

Lam Research announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 14th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

In other Lam Research news, Director Michael R. Cannon sold 9,000 shares of Lam Research stock in a transaction that occurred on Thursday, November 16th. The shares were sold at an average price of $212.43, for a total transaction of $1,911,870.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Patrick J. Lord sold 264 shares of Lam Research stock in a transaction that occurred on Friday, November 24th. The stock was sold at an average price of $216.08, for a total transaction of $57,045.12. The disclosure for this sale can be found here. Insiders sold 31,269 shares of company stock worth $6,615,633 over the last ninety days. 0.41% of the stock is currently owned by insiders.

Hedge funds have recently bought and sold shares of the business. Vantage Financial Partners Ltd. Inc. purchased a new position in shares of Lam Research in the second quarter worth $254,000. Krilogy Financial LLC increased its stake in shares of Lam Research by 91.6% in the third quarter. Krilogy Financial LLC now owns 550 shares of the semiconductor company’s stock worth $102,000 after buying an additional 263 shares during the period. Bollard Group LLC purchased a new position in shares of Lam Research in the third quarter worth $130,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in shares of Lam Research in the third quarter worth $134,000. Finally, Odey Holdings AG increased its stake in shares of Lam Research by 9.9% in the second quarter. Odey Holdings AG now owns 810 shares of the semiconductor company’s stock worth $115,000 after buying an additional 73 shares during the period. 93.45% of the stock is currently owned by hedge funds and other institutional investors.

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Lam Research 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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