Buying Lam Research Corporation (LRCX) Stock Is A Smart Move Today?


Lam Research Corporation (NASDAQ:LRCX) traded with an addition of $14.89 to close at $417.69 on Thursday, an upside of 3.70 percent. An average of 1,334,599 shares of common stock have been traded in the last five days. There was a fall of -$30.87 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 1,233,895 shares traded, while the 50-day average volume stands at 1,737,036.

LRCX stock has decreased by -9.12% in the last month. The company shares reached their 1-month lowest point of $397.06 on 12/22/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $299.59 and a high of $731.85 in 52 weeks. It has reached a new high 2 times so far this year and lost -43.99% or -$302.15 in price. In spite of this, the price is down -42.93% from the 52-week high.

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Insider Transactions

LRCX stock investors should be aware that Lam Research Corporation (LRCX) stock had its last reported insider trading activity 8 days ago on Dec 21. In this transaction, the insider spent $1,593,000. Director, Ahmed Sohail U, disposed of 0 shares at a price of $432.71 on Nov 09. The insider now owns more than $46 worth of shares. Prior to that, Chief Financial Officer & EVP Bettinger Douglas R went on to Sale 34,895 shares at $439.11 each on Aug 30. An amount of $15,322,590 was transacted.

Valuation Metrics

Lam Research Corporation (LRCX) has a trailing price-to-earnings (P/E) ratio of 11.55. The stock’s beta is 1.44. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.03, the price-to-book (PB) ratio at 7.44, and the price-to-cash flow ratio at 22.29.

The company has a payout ratio of 17.10%. The company’s most recent quarterly dividend payment was $1.7250 a share, without any change from last year. Its latest increase dividend $0.2250 reported on Thursday August 25 2022.

Financial Health

The quick ratio of Lam Research Corporation for the three months ended September 29 was 1.80, and the current ratio was 2.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.67 and a total debt to equity ratio of 0.67 for the quarter ending September 29. Its gross profit as reported stood at $7.87 billion compared to revenue of $17.23 billion.

Earnings Surprise

For the three-month period that ended September 29, Lam Research Corporation had $5.0 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.43 billion in the quarter, while revenues of $1.21 billion were grew 17.26%. The analyst consensus anticipated Lam Research Corporation’s latest quarter earnings to come in at $9.53 per share, but it turned out to be $10.42, a 9.30% surprise. For the quarter, EBITDA amounted to $1.77 billion. Shareholders own equity worth $136.38 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Lam Research Corporation (LRCX) price momentum. RSI 9-day as of the close on 28 December was 40.84%, suggesting the stock is Neutral, with historical volatility in this time frame at 52.53%.

As of today, LRCX’s price is $409.30 -6.89% or -$30.87 from its 5-day moving average. LRCX is currently trading -11.72% lower than its 20-day SMA and -18.16% lower than its 100-day SMA. However, the stock’s current price level is +29.48% above the SMA50 and -13.97% below the SMA200.

The stochastic %K and %D were 12.14% and 12.09%, respectively, and the average true range (ATR) was 16.70. With the 14-day stochastic at 21.30% and the average true range at 17.15, the RSI (14) stands at 43.28%. The stock has reached -15.39 on the 9-day MACD Oscillator while the 14-day reading was at -28.66.

Analyst Ratings

Deutsche Bank upgraded Lam Research Corporation (NASDAQ: LRCX) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Lam Research Corporation (LRCX) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell LRCX, while 9 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.

What is LRCX’s price target for the next 12 months?

Analysts predict a range of price targets between $300.00 and $560.00, with a median target of $430.00. Taking a look at these predictions, the average price target given by analysts for Lam Research Corporation (LRCX) stock is $438.43.


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