Lam Research (NASDAQ:LRCX) Sets New 12-Month High – Should You Buy?

Shares of Lam Research Corporation (NASDAQ:LRCX) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $232.90 and last traded at $229.9050, with a volume of 7740468 shares. The stock had previously closed at $222.41.

Analyst Upgrades and Downgrades

Several research firms have weighed in on LRCX. Mizuho set a $220.00 target price on Lam Research and gave the company an “outperform” rating in a report on Friday, January 9th. BNP Paribas Exane boosted their price objective on shares of Lam Research from $80.00 to $140.00 and gave the stock a “neutral” rating in a research report on Thursday, October 23rd. B. Riley restated a “buy” rating on shares of Lam Research in a report on Thursday, January 15th. Dbs Bank lifted their target price on shares of Lam Research from $119.40 to $184.20 in a research report on Monday, October 27th. Finally, Citigroup increased their price target on shares of Lam Research from $175.00 to $190.00 and gave the company a “buy” rating in a research report on Tuesday, November 11th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $196.33.

Lam Research Trading Up 2.7%

The business’s fifty day moving average price is $174.00 and its 200 day moving average price is $139.28. The company has a quick ratio of 1.60, a current ratio of 2.21 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $286.86 billion, a PE ratio of 50.31, a P/E/G ratio of 2.55 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.04. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The business had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter in the prior year, the firm posted $0.86 earnings per share. The company’s quarterly revenue was up 27.7% compared to the same quarter last year. As a group, analysts expect that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Wednesday, December 3rd were paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s dividend payout ratio is currently 22.91%.

Insider Transactions at Lam Research

In related news, insider Ava Harter sold 9,010 shares of the stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $157.47, for a total transaction of $1,418,804.70. Following the transaction, the insider directly owned 56,786 shares in the company, valued at approximately $8,942,091.42. This represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Douglas R. Bettinger sold 40,080 shares of Lam Research stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $150.60, for a total value of $6,036,048.00. Following the completion of the sale, the chief financial officer owned 987,237 shares of the company’s stock, valued at $148,677,892.20. This trade represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 50,418 shares of company stock worth $7,667,305 over the last quarter. 0.31% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently modified their holdings of the stock. PMV Capital Advisers LLC purchased a new position in Lam Research during the fourth quarter worth approximately $25,000. IMG Wealth Management Inc. acquired a new stake in shares of Lam Research during the 2nd quarter worth $26,000. Stance Capital LLC purchased a new position in shares of Lam Research in the 3rd quarter worth $26,000. Howard Hughes Medical Institute acquired a new position in Lam Research in the second quarter valued at $27,000. Finally, Triumph Capital Management purchased a new stake in Lam Research during the third quarter valued at about $27,000. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.