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 research report issued to clients and investors 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.”
A number of other analysts also recently weighed in on the company. RBC Capital Markets restated an “outperform” rating and issued a $105.00 price objective on shares of Lam Research Corp. in a report on Sunday, October 9th. Morgan Stanley restated an “overweight” rating and issued a $105.00 price objective on shares of Lam Research Corp. in a report on Saturday, October 8th. Credit Suisse Group AG restated a “buy” rating and issued a $100.00 price objective on shares of Lam Research Corp. in a report on Thursday, October 6th. Needham & Company LLC increased their price objective on Lam Research Corp. from $105.00 to $115.00 and gave the company a “buy” rating in a report on Thursday, October 6th. Finally, JPMorgan Chase & Co. restated a “buy” rating on shares of Lam Research Corp. in a report on Thursday, October 6th. Three analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. Lam Research Corp. presently has a consensus rating of “Buy” and a consensus price target of $101.38.
Shares of Lam Research Corp. (NASDAQ:LRCX) opened at 97.73 on Friday. Lam Research Corp. has a 1-year low of $63.10 and a 1-year high of $102.44. The firm has a 50 day moving average price of $94.37 and a 200 day moving average price of $86.34. The firm has a market cap of $15.66 billion, a P/E ratio of 18.72 and a beta of 1.47.
Lam Research Corp. (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $1.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.64 by $0.16. The company earned $1.55 billion during the quarter, compared to the consensus estimate of $1.53 billion. Lam Research Corp. had a net margin of 15.53% and a return on equity of 18.95%. The company’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.50 earnings per share. Analysts anticipate that Lam Research Corp. will post $7.02 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 28th. Shareholders of record on Wednesday, September 14th were paid a $0.30 dividend. The ex-dividend date was Monday, September 12th. This represents a $1.20 annualized dividend and a yield of 1.23%. Lam Research Corp.’s dividend payout ratio (DPR) is 22.99%.
In other Lam Research Corp. news, insider Richard A. Gottscho sold 47,540 shares of the stock in a transaction dated 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.46% of the stock is currently owned by company insiders.
Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in Lam Research Corp. by 1.3% in the second quarter. Vanguard Group Inc. now owns 14,385,832 shares of the company’s stock valued at $1,209,274,000 after buying an additional 187,529 shares during the period. FMR LLC raised its stake in shares of Lam Research Corp. by 149.5% in the second quarter. FMR LLC now owns 10,317,149 shares of the company’s stock valued at $867,259,000 after buying an additional 6,182,540 shares during the last quarter. State Street Corp raised its stake in shares of Lam Research Corp. by 0.3% in the second quarter. State Street Corp now owns 6,393,084 shares of the company’s stock valued at $537,391,000 after buying an additional 19,142 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of 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 valued at $415,128,000 after buying an additional 1,131,843 shares during the last quarter. Finally, BlackRock Fund Advisors raised its stake in shares of Lam Research Corp. by 4.5% in the second quarter. BlackRock Fund Advisors now owns 2,916,817 shares of the company’s stock valued at $245,188,000 after buying an additional 126,883 shares during the last quarter.
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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