Lam Research (NASDAQ:LRCX) Shares Gap Up on Earnings Beat

Shares of Lam Research Co. (NASDAQ:LRCX) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $884.89, but opened at $909.33. Lam Research shares last traded at $905.51, with a volume of 288,362 shares.

The semiconductor company reported $7.79 EPS for the quarter, beating analysts’ consensus estimates of $7.26 by $0.53. Lam Research had a return on equity of 44.47% and a net margin of 24.15%. The company had revenue of $3.79 billion during the quarter, compared to analysts’ expectations of $3.72 billion. During the same period last year, the business posted $6.99 EPS. Lam Research’s revenue for the quarter was down 2.0% on a year-over-year basis.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 3rd. Investors of record on Wednesday, March 13th were paid a $2.00 dividend. The ex-dividend date was Tuesday, March 12th. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.88%. Lam Research’s dividend payout ratio (DPR) is presently 30.94%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. B. Riley raised Lam Research from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $870.00 to $1,100.00 in a report on Friday, April 19th. The Goldman Sachs Group upped their target price on Lam Research from $700.00 to $912.00 and gave the stock a “buy” rating in a research report on Thursday, January 25th. Raymond James increased their price target on Lam Research from $850.00 to $950.00 and gave the company an “outperform” rating in a report on Thursday, January 25th. UBS Group increased their target price on Lam Research from $885.00 to $1,130.00 and gave the stock a “buy” rating in a report on Tuesday, March 5th. Finally, Wells Fargo & Company increased their target price on Lam Research from $930.00 to $980.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 2nd. Seven analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $932.85.

Insider Transactions at Lam Research

In related news, SVP Seshasayee Varadarajan sold 5,500 shares of the business’s stock in a transaction on Monday, March 18th. The shares were sold at an average price of $922.41, for a total value of $5,073,255.00. Following the transaction, the senior vice president now owns 22,095 shares in the company, valued at $20,380,648.95. The transaction was disclosed in a document filed with the SEC, which is available through this link. In other news, CAO Christina Corrreia sold 647 shares of the business’s stock in a transaction dated Monday, April 1st. The shares were sold at an average price of $972.03, for a total transaction of $628,903.41. Following the completion of the sale, the chief accounting officer now directly owns 5,541 shares of the company’s stock, valued at $5,386,018.23. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Seshasayee Varadarajan sold 5,500 shares of the business’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $922.41, for a total transaction of $5,073,255.00. Following the sale, the senior vice president now directly owns 22,095 shares of the company’s stock, valued at $20,380,648.95. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 7,029 shares of company stock worth $6,559,489. Company insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Institutional investors have recently added to or reduced their stakes in the company. Capital Investment Advisors LLC purchased a new position in Lam Research in the third quarter valued at about $410,000. Meridian Wealth Management LLC lifted its stake in shares of Lam Research by 93.3% during the 3rd quarter. Meridian Wealth Management LLC now owns 1,620 shares of the semiconductor company’s stock valued at $1,016,000 after buying an additional 782 shares in the last quarter. Exchange Traded Concepts LLC lifted its stake in Lam Research by 28.8% in the 3rd quarter. Exchange Traded Concepts LLC now owns 2,458 shares of the semiconductor company’s stock worth $1,541,000 after purchasing an additional 549 shares in the last quarter. Strategic Blueprint LLC lifted its stake in Lam Research by 18.2% in the 3rd quarter. Strategic Blueprint LLC now owns 1,137 shares of the semiconductor company’s stock worth $713,000 after purchasing an additional 175 shares in the last quarter. Finally, Caprock Group LLC lifted its stake in Lam Research by 5.7% in the 3rd quarter. Caprock Group LLC now owns 1,825 shares of the semiconductor company’s stock worth $1,148,000 after purchasing an additional 98 shares in the last quarter. 84.61% of the stock is owned by institutional investors.

Lam Research Stock Up 2.3 %

The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.02 and a current ratio of 3.06. The firm has a market capitalization of $118.71 billion, a PE ratio of 34.83, a PEG ratio of 3.21 and a beta of 1.51. The company’s 50 day simple moving average is $943.93 and its 200-day simple moving average is $806.38.

Lam Research Company Profile

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.