Lam Research Corporation (LRCX): What Technical Indicators Show

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Lam Research Corporation (NASDAQ:LRCX) saw a downside of -2.41% to $475.73 after subtracting -$11.77 on Wednesday. The 5-day average trading volume is 1,084,547 shares of the company’s common stock. It has gained $498.84 in the past week and touched a new high 3 times within the past 5 days. An average of 1,150,237 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,331,341.

LRCX’s 1-month performance is 8.85% or $60.47 on its low of $399.29 reached on 12/28/22. The company’s shares have touched a 52-week low of $299.59 and high of $615.99, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, LRCX has achieved 15.99% or $52.29 and has reached a new high 7 times. However, the current price is down -22.77% from the 52-week high price.


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Insider Transactions

LRCX stock investors last saw insider trading activity on Jan 03.TALWALKAR ABHIJIT Y (Director) most recently sold 880 shares at $429.72 per share on Jan 03. This transaction cost the insider $378,154. Executive Vice President & CTO, Gottscho Richard A, sold 3,540 shares at a price of $450.00 on Dec 21. Then, on Nov 09, Director Ahmed Sohail U sold 0 shares at a price of $432.71 per share. This transaction amounted to $46.

Valuation Metrics

LRCX stock has a beta of 1.45. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.55 while the price-to-book (PB) in the most recent quarter is 9.00, with the price to cash flow ratio at 26.11.

Lam Research Corporation’s quick ratio for the period ended September 29 was 1.80, with the current ratio over the same period at 2.70. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.67, while the total debt to equity was 0.67. In terms of profitability, the gross margin trailing 12 months is 45.70%. The firm’s gross profit as reported stood at $7.87 billion against revenue of $17.23 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 17.26% to $1.43 billion, while revenue of $1.21 billion was 15.22% off the previous quarter. Analysts expected LRCX to announce $9.53 per share in earnings in its latest quarter, but it posted $10.42, representing a 9.30% surprise. EBITDA for the quarter stood at more than $1.77 billion. LRCX stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 11.31 billion, with total debt at $5.0 billion. Shareholders hold equity totaling $136.38 million.

Let’s look briefly at Lam Research Corporation (LRCX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 56.66% to suggest the stock is trending Neutral, with historical volatility in this time period at 37.93%.

The stock’s 5-day moving average is $475.45, reflecting a +1.22% or $5.70 change from its current price. LRCX is currently trading +14.67% above its 20-day SMA, +7.92% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -2.64% and SMA200 by-6.11%.

Stochastic %K and %D was 82.54% and 83.25% and the average true range (ATR) pointed at 16.89. The RSI (14) points at 56.74%, while the 14-day stochastic is at 69.56% with the period’s ATR at 16.97. The stock’s 9-day MACD Oscillator is pointing at 10.42 and 19.59 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for LRCX stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LRCX as a “sell,”, while 9 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 14 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $370.00 and a high of $560.00, with their median price target at $500.00. Looking at these predictions, the average price target given by analysts is for Lam Research Corporation (LRCX) stock is $485.65.

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