Lam Research (NASDAQ:LRCX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued 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 analysts have also weighed in on LRCX. Citigroup decreased their target price on Lam Research from $216.00 to $177.00 and set a “buy” rating for the company in a research report on Tuesday, September 25th. UBS Group lowered shares of Lam Research from a “buy” rating to a “neutral” rating in a research report on Wednesday, September 26th. Mizuho lowered shares of Lam Research from a “buy” rating to a “neutral” rating in a research report on Monday, October 1st. Deutsche Bank reaffirmed a “hold” rating and set a $170.00 price target (down previously from $230.00) on shares of Lam Research in a research report on Monday, October 1st. Finally, DA Davidson reduced their price target on shares of Lam Research to $225.00 in a research report on Monday, October 15th. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and an average target price of $220.47.

Lam Research stock traded up $0.93 during mid-day trading on Friday, reaching $145.50. The stock had a trading volume of 103,186 shares, compared to its average volume of 2,278,163. Lam Research has a one year low of $122.64 and a one year high of $234.88. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.66 and a quick ratio of 2.00. The stock has a market cap of $22.35 billion, a price-to-earnings ratio of 8.12, a PEG ratio of 0.84 and a beta of 1.38.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Tuesday, October 16th. The semiconductor company reported $3.36 earnings per share for the quarter, topping the Zacks’ consensus estimate of $3.22 by $0.14. Lam Research had a return on equity of 49.80% and a net margin of 21.26%. The business had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.31 billion. During the same quarter in the previous year, the firm earned $3.46 EPS. Lam Research’s revenue was down 6.0% on a year-over-year basis. On average, equities analysts expect that Lam Research will post 14.37 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Franklin Resources Inc. raised its holdings in Lam Research by 159.5% during the 3rd quarter. Franklin Resources Inc. now owns 3,256,363 shares of the semiconductor company’s stock valued at $493,990,000 after buying an additional 2,001,261 shares during the period. FMR LLC raised its holdings in Lam Research by 51.9% during the 3rd quarter. FMR LLC now owns 3,538,138 shares of the semiconductor company’s stock valued at $536,736,000 after buying an additional 1,208,149 shares during the period. Renaissance Technologies LLC raised its holdings in Lam Research by 413.7% during the 3rd quarter. Renaissance Technologies LLC now owns 998,956 shares of the semiconductor company’s stock valued at $151,542,000 after buying an additional 804,500 shares during the period. Morgan Stanley raised its holdings in Lam Research by 83.1% during the 2nd quarter. Morgan Stanley now owns 1,530,120 shares of the semiconductor company’s stock valued at $264,481,000 after buying an additional 694,440 shares during the period. Finally, LFA Lugano Financial Advisors SA purchased a new stake in Lam Research during the 2nd quarter valued at $454,000. Hedge funds and other institutional investors own 88.89% of the company’s stock.

Lam Research Company Profile

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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