Zacks Investment Research cut shares of Lam Research (NASDAQ:LRCX) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Lam Research is currently suffering from oversupply and overcapacity of memory chips which is impacting the equipment spending across the world. Further, rising competition in the semiconductor capital equipment market especially from Applied Materials remains a headwind for the company’s market position. Notably, shares of Lam Research have underperformed the industry it belongs to on a year-to-date basis. Nevertheless, the company remains optimistic on improving demand in its equipment and memory segments. Further, its strength in logic & foundry segments along with increased adoption rates of 3D NAND technology bodes well for its top-line growth. However, foreign currency fluctuation risks and cyclicality in the semiconductor industry are major concerns.”
Other analysts also recently issued reports about the stock. DA Davidson reduced their target price on shares of Lam Research to $225.00 in a report on Monday, October 15th. Citigroup reduced their target price on shares of Lam Research from $239.00 to $216.00 and set a buy rating on the stock in a report on Monday, July 30th. UBS Group upgraded shares of Lam Research from a neutral rating to a buy rating and set a $220.00 target price on the stock in a report on Tuesday, June 26th. Stifel Nicolaus reduced their target price on shares of Lam Research from $295.00 to $279.00 and set a buy rating on the stock in a report on Friday, July 27th. Finally, BidaskClub upgraded shares of Lam Research from a sell rating to a hold rating in a report on Thursday, July 19th. Three research analysts have rated the stock with a sell rating, six have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of Buy and an average price target of $230.89.
Lam Research (NASDAQ:LRCX) last posted its earnings results on Tuesday, October 16th. The semiconductor company reported $3.36 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.14. Lam Research had a net margin of 21.26% and a return on equity of 49.80%. The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.31 billion. During the same period in the previous year, the firm posted $3.46 EPS. The business’s quarterly revenue was down 6.0% on a year-over-year basis. As a group, sell-side analysts expect that Lam Research will post 14.37 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Wednesday, September 26th. Investors of record on Wednesday, September 12th were issued a dividend of $1.10 per share. The ex-dividend date was Tuesday, September 11th. This represents a $4.40 annualized dividend and a yield of 3.03%. Lam Research’s payout ratio is 24.62%.
Large investors have recently modified their holdings of the stock. BlackRock Inc. boosted its position in Lam Research by 0.9% in the 2nd quarter. BlackRock Inc. now owns 11,252,078 shares of the semiconductor company’s stock valued at $1,944,921,000 after buying an additional 102,790 shares during the period. Janus Henderson Group PLC boosted its position in Lam Research by 4.4% in the 2nd quarter. Janus Henderson Group PLC now owns 5,503,855 shares of the semiconductor company’s stock valued at $951,341,000 after buying an additional 231,609 shares during the period. LSV Asset Management boosted its position in Lam Research by 7.9% in the 2nd quarter. LSV Asset Management now owns 2,641,374 shares of the semiconductor company’s stock valued at $456,561,000 after buying an additional 193,629 shares during the period. FMR LLC boosted its position in Lam Research by 92.5% in the 2nd quarter. FMR LLC now owns 2,329,989 shares of the semiconductor company’s stock valued at $402,737,000 after buying an additional 1,119,488 shares during the period. Finally, Swedbank boosted its position in Lam Research by 8.3% in the 3rd quarter. Swedbank now owns 1,944,630 shares of the semiconductor company’s stock valued at $295,000,000 after buying an additional 149,147 shares during the period. Institutional investors own 92.37% 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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