Lam Research Co. (LRCX) Receives $216.21 Average Price Target from Brokerages

Lam Research Co. (NASDAQ:LRCX) has been given a consensus recommendation of “Buy” by the twenty-four research firms that are covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $216.21.

LRCX has been the subject of several recent research reports. ValuEngine downgraded Lam Research from a “hold” rating to a “sell” rating in a research note on Friday, January 4th. Needham & Company LLC reiterated a “buy” rating and set a $180.00 target price on shares of Lam Research in a research report on Thursday, January 24th. Zacks Investment Research downgraded Lam Research from a “hold” rating to a “sell” rating in a research report on Friday, January 11th. Royal Bank of Canada upgraded Lam Research from a “sector perform” rating to an “outperform” rating and set a $190.00 target price for the company in a research report on Tuesday, January 29th. Finally, UBS Group downgraded Lam Research from a “positive” rating to a “neutral” rating in a research report on Tuesday, October 23rd.

NASDAQ:LRCX opened at $181.09 on Wednesday. Lam Research has a fifty-two week low of $122.64 and a fifty-two week high of $234.88. The company has a current ratio of 3.39, a quick ratio of 2.61 and a debt-to-equity ratio of 0.31. The stock has a market cap of $27.63 billion, a PE ratio of 10.13, a price-to-earnings-growth ratio of 1.09 and a beta of 1.50.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, January 23rd. The semiconductor company reported $3.87 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $3.67 by $0.20. The business had revenue of $2.52 billion for the quarter, compared to analysts’ expectations of $2.50 billion. Lam Research had a return on equity of 48.08% and a net margin of 26.69%. Lam Research’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $4.34 EPS. As a group, equities analysts expect that Lam Research will post 13.9 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 10th. Shareholders of record on Wednesday, March 20th will be issued a $1.10 dividend. The ex-dividend date of this dividend is Tuesday, March 19th. This represents a $4.40 annualized dividend and a yield of 2.43%. Lam Research’s payout ratio is currently 24.62%.

Lam Research declared that its Board of Directors has initiated a stock repurchase program on Wednesday, January 23rd that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to buy up to 23% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

In other Lam Research news, SVP Kevin Jennings sold 1,692 shares of the stock in a transaction that occurred on Wednesday, February 6th. The stock was sold at an average price of $180.00, for a total value of $304,560.00. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Christine Heckart sold 2,050 shares of the stock in a transaction that occurred on Friday, February 1st. The stock was sold at an average price of $172.98, for a total value of $354,609.00. The disclosure for this sale can be found here. 0.44% of the stock is currently owned by corporate insiders.

A number of large investors have recently made changes to their positions in the business. Oregon Public Employees Retirement Fund lifted its holdings in shares of Lam Research by 35,969.7% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 15,760,316 shares of the semiconductor company’s stock valued at $116,000 after purchasing an additional 15,716,622 shares in the last quarter. BlackRock Inc. lifted its holdings in shares of Lam Research by 1.6% in the fourth quarter. BlackRock Inc. now owns 11,429,062 shares of the semiconductor company’s stock valued at $1,556,294,000 after purchasing an additional 178,331 shares in the last quarter. FMR LLC lifted its holdings in shares of Lam Research by 51.9% in the third quarter. FMR LLC now owns 3,538,138 shares of the semiconductor company’s stock valued at $536,736,000 after purchasing an additional 1,208,149 shares in the last quarter. Franklin Resources Inc. increased its position in shares of Lam Research by 159.5% during the third quarter. Franklin Resources Inc. now owns 3,256,363 shares of the semiconductor company’s stock valued at $493,990,000 after acquiring an additional 2,001,261 shares during the last quarter. Finally, LSV Asset Management increased its position in shares of Lam Research by 5.3% during the fourth quarter. LSV Asset Management now owns 3,045,010 shares of the semiconductor company’s stock valued at $414,639,000 after acquiring an additional 153,891 shares during the last quarter. Institutional investors and hedge funds own 89.11% of the company’s stock.

About Lam Research

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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Analyst Recommendations for Lam Research (NASDAQ:LRCX)

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