Lam Research (NASDAQ:LRCX) Shares Gap Up Following Better-Than-Expected Earnings

Lam Research Co. (NASDAQ:LRCX) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $72.86, but opened at $76.18. Lam Research shares last traded at $76.02, with a volume of 3,870,257 shares trading hands.

The semiconductor company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.05. Lam Research had a net margin of 25.68% and a return on equity of 48.71%. The firm had revenue of $4.17 billion for the quarter, compared to analyst estimates of $4.06 billion. During the same period in the previous year, the business earned $6.85 earnings per share. The company’s revenue for the quarter was up 19.7% compared to the same quarter last year.

Lam Research Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 1st. Investors of record on Tuesday, September 17th were paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.20%. The ex-dividend date was Tuesday, September 17th. Lam Research’s dividend payout ratio (DPR) is 3.38%.

Analyst Ratings Changes

Several brokerages have commented on LRCX. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 target price on shares of Lam Research in a research note on Thursday. TD Cowen upped their target price on shares of Lam Research from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Thursday, August 1st. Wells Fargo & Company lowered their target price on shares of Lam Research from $88.00 to $85.00 and set an “equal weight” rating for the company in a research note on Thursday. Morgan Stanley lowered their target price on shares of Lam Research from $81.00 to $77.00 and set an “equal weight” rating for the company in a research note on Wednesday. Finally, Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $100.00 target price on shares of Lam Research in a research note on Thursday. Six equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $97.03.

Insider Activity at Lam Research

In related news, CAO Christina Correia sold 647 shares of Lam Research stock in a transaction that occurred on Tuesday, October 1st. The shares were sold at an average price of $817.51, for a total transaction of $528,928.97. Following the sale, the chief accounting officer now directly owns 4,267 shares of the company’s stock, valued at approximately $3,488,315.17. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.32% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lam Research

A number of institutional investors have recently added to or reduced their stakes in the business. Fortitude Family Office LLC grew its holdings in Lam Research by 16.7% during the 2nd quarter. Fortitude Family Office LLC now owns 63 shares of the semiconductor company’s stock worth $67,000 after acquiring an additional 9 shares during the last quarter. Thomasville National Bank grew its holdings in Lam Research by 1.5% during the 2nd quarter. Thomasville National Bank now owns 812 shares of the semiconductor company’s stock worth $865,000 after acquiring an additional 12 shares during the last quarter. Ignite Planners LLC grew its holdings in Lam Research by 2.8% during the 2nd quarter. Ignite Planners LLC now owns 445 shares of the semiconductor company’s stock worth $484,000 after acquiring an additional 12 shares during the last quarter. U.S. Capital Wealth Advisors LLC grew its holdings in Lam Research by 3.7% during the 2nd quarter. U.S. Capital Wealth Advisors LLC now owns 335 shares of the semiconductor company’s stock worth $357,000 after acquiring an additional 12 shares during the last quarter. Finally, RFP Financial Group LLC grew its holdings in Lam Research by 52.2% during the 2nd quarter. RFP Financial Group LLC now owns 35 shares of the semiconductor company’s stock worth $37,000 after acquiring an additional 12 shares during the last quarter. 84.61% of the stock is owned by institutional investors.

Lam Research Stock Up 5.1 %

The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.00 and a current ratio of 2.97. The stock has a market capitalization of $10.01 billion, a P/E ratio of 2.82, a price-to-earnings-growth ratio of 1.75 and a beta of 1.47. The stock’s fifty day simple moving average is $79.60 and its two-hundred day simple moving average is $89.94.

About Lam Research

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.