According to Zacks, “Lam Research expects memory segments to weaken during this year as customers continue to reign in both NAND and DRAM spending. Further, cyclicality and the current U.S.-China trade war are headwinds in the semiconductor industry. Further, foreign currency fluctuation risks are major concerns. However, it is currently riding on its solid momentum in device architectures. Moreover, rising adoption of 3D architectures remain positive. It continues to drive the performance of the company’s non-memory segments. Further, rising equipment demand and advanced packaging technology inflections are acting as tailwinds. Additionally, Lam Research continues to benefit from its transition to new data-enabled economy, in which DRAM and NAND continue to gain from density growth. Notably, the stock has outperformed the industry it belongs to over a year.”
Other equities research analysts have also recently issued reports about the company. Needham & Company LLC began coverage on Lam Research in a research note on Friday, December 21st. They set a buy rating and a $180.00 price objective for the company. Morgan Stanley cut Lam Research from an overweight rating to an equal weight rating in a research note on Friday, February 22nd. Credit Suisse Group restated a buy rating and set a $278.00 price objective on shares of Lam Research in a research note on Monday, January 21st. Cowen restated an outperform rating and set a $185.00 price objective (down from $210.00) on shares of Lam Research in a research note on Thursday, January 24th. Finally, KeyCorp decreased their price objective on Lam Research from $231.00 to $223.00 and set an overweight rating for the company in a research note on Thursday, January 24th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and eleven have given a buy rating to the company. The company presently has an average rating of Hold and an average target price of $212.72.
Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, January 23rd. The semiconductor company reported $3.87 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $3.67 by $0.20. The business had revenue of $2.52 billion during the quarter, compared to analysts’ expectations of $2.50 billion. Lam Research had a return on equity of 48.08% and a net margin of 26.69%. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year. During the same period in the prior year, the business earned $4.34 EPS. As a group, equities analysts forecast that Lam Research will post 13.89 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 10th. Stockholders of record on Wednesday, March 20th were issued a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.27%. The ex-dividend date was Tuesday, March 19th. Lam Research’s dividend payout ratio is presently 24.62%.
Lam Research declared that its Board of Directors has authorized a share repurchase plan on Wednesday, January 23rd that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to repurchase up to 23% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.
In other news, Director Christine Heckart sold 2,050 shares of the stock in a transaction dated Friday, February 1st. The stock was sold at an average price of $172.98, for a total value of $354,609.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Patrick J. Lord sold 9,177 shares of the stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $185.00, for a total value of $1,697,745.00. The disclosure for this sale can be found here. Insiders sold 25,476 shares of company stock worth $4,654,783 over the last three months. Corporate insiders own 0.44% of the company’s stock.
Several hedge funds have recently made changes to their positions in the company. Central Bank & Trust Co. lifted its position in shares of Lam Research by 0.3% in the third quarter. Central Bank & Trust Co. now owns 33,016 shares of the semiconductor company’s stock valued at $5,008,000 after acquiring an additional 111 shares in the last quarter. BlackRock Inc. lifted its position in Lam Research by 1.6% during the fourth quarter. BlackRock Inc. now owns 11,429,062 shares of the semiconductor company’s stock worth $1,556,294,000 after buying an additional 178,331 shares in the last quarter. Weiss Multi Strategy Advisers LLC purchased a new position in Lam Research during the fourth quarter worth approximately $3,404,000. Dupont Capital Management Corp lifted its position in Lam Research by 4.6% during the fourth quarter. Dupont Capital Management Corp now owns 30,242 shares of the semiconductor company’s stock worth $4,118,000 after buying an additional 1,325 shares in the last quarter. Finally, Lcnb Corp purchased a new position in Lam Research during the fourth quarter worth approximately $204,000. 89.09% of the stock is currently owned by institutional investors and hedge funds.
Lam Research Company Profile
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.
See Also: Net Income
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