The stock of Lam Research Corporation (NASDAQ:LRCX) increased by $4.34 on Friday to finish at $660.27, up 0.66 percent. The last five days have seen an average of 860,480 shares of common stock traded. 23 times new highs were reached in the current year, with a gain of $239.97. The average number of shares traded over the last 20 days was 961,360, while the average volume over the last 50 days totaled 1,201,044.
LRCX stock dropped -5.94% since last month. On 07/26/23, the company’s shares reached a one-month low of $632.14. The stock touched a high of $726.53 on 07/31/23, after rallying from a low of $299.59 in 52 weeks. The price of LRCX stock has risen by 57.09% or $239.97 this year, reaching a new high 23 times. Still, the stock price is down -9.12% 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 21 days ago on Aug 07. On Aug 07, Chief Financial Officer & EVP Bettinger Douglas R sold 1,894 shares at $705.86 each. This transaction resulted in the insider making $1,336,899. On Aug 01, Vahedi Vahid sold 13,756 shares at a price of US$717.46. After the transaction, the insider now owns 26,483 shares. CVP, Chief Accounting Officer Corrreia Christina had earlier sold 1,627 shares on Aug 01 for $708.85 a share. The transaction was completed for $1,153,299.
Valuation Metrics
Lam Research Corporation (LRCX) has a trailing price-to-earnings (P/E) ratio of 19.92. Beta for the stock is 1.50. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.99, the price-to-book (PB) ratio of 10.78, and the price-to-cash flow ratio of 18.58.
Company paid $0.2750 per share in dividends, a decrease of -84.06% from $1.7250 last year.
Financial Health
For the three months ended June 29, Lam Research Corporation’s quick ratio was 2.00, while its current ratio was 3.20, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.61, and the total debt to equity ratio is 0.61. As far as profitability goes, gross margin for the trailing twelve months is 45.10% percent. Lam Research Corporation’s EBITDA margin for the year ended June 29 was 32.35%, whereas its operating margin stood at 29.70% for the same period. Based on annual data, it had gross profit of $7.78 billion and revenue of $17.43 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. LRCX’s return on assets (ROA) during the last 12 months has been 23.80%. There was a 34.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 55.80%.
Earnings Surprise
According to Lam Research Corporation’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.21 billion, while revenues fell by -44.56% to $3.87 billion. It was predicted that Lam Research Corporation’s quarterly earnings would be $5.98, but it ended up being $5.07, beating the consensus by 17.90%. EBITDA was $944.21 million for the quarter. At the end of Lam Research Corporation’s most recent quarter ended June 29, its liabilities totaled 10.57 billion, while its total debt was $5.25 billion. Equity owned by shareholders amounts to $132.51 million.
Technical Picture
Here’s a quick look at Lam Research Corporation’s (LRCX) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 46.83%, suggesting the stock is Neutral, with a 26.99% historical volatility rate.
The stochastic %K and %D were 38.64% and 42.34% respectively, while the average true range (ATR) was 20.53. Based on the 14-day stochastic reading of 33.82%, the RSI (14) reading is 48.93%. On the 9-day MACD Oscillator, the stock is at 5.43, and the 14-day reading is at -1.06.
Analyst Ratings
In its most recent analyst report, Stifel raised its rating on Lam Research Corporation (NASDAQ: LRCX) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Lam Research Corporation (LRCX) an Overweight rating. LRCX is a stock that is recommended for selling by 0 brokerage firms, while 12 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 14 others recommend it as a buy.
What is LRCX’s price target for the next 12 months?
The current consensus forecast for the stock is between $545.00 and $800.00, with a median target price of $720.00. In analyzing these forecasts, the average price target given by analysts for Lam Research Corporation (LRCX) is $694.95.
