Lam Research Corporation [LRCX] Revenue clocked in at $11.06 billion, up 36.70% YTD: What’s Next?

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Lam Research Corporation [NASDAQ: LRCX] gained 5.09% on the last trading session, reaching $399.71 price per share at the time. The company report on November 6, 2020 that Lam Research Corporation Announces $5 Billion Share Repurchase Authorization and Declares Quarterly Dividend.

Lam Research Corporation (Nasdaq: LRCX) announced that its Board of Directors approved a $5 billion share repurchase authorization and a quarterly dividend of $1.30 per share of common stock.

The company is authorized to repurchase up to $5 billion of common stock; this authorization supplements the remaining balances from any prior authorizations. Repurchases may be made through both public market and private transactions and may include the use of derivative contracts and structured share repurchase agreements. This repurchase program has no termination date and may be suspended or discontinued at any time.

Lam Research Corporation represents 145.27 million in outstanding shares, while the company has a total market value of $59.44 billion with the latest information. LRCX stock price has been found in the range of $388.45 to $400.34.

If compared to the average trading volume of 1.67M shares, LRCX reached a trading volume of 1809253 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Lam Research Corporation [LRCX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LRCX shares is $404.91 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LRCX stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Lam Research Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 22, 2020. While these analysts kept the previous recommendation, Stifel raised their target price from $352 to $418. The new note on the price target was released on October 22, 2020, representing the official price target for Lam Research Corporation stock. Previously, the target price had yet another raise from $400 to $420, while RBC Capital Mkts kept a Outperform rating on LRCX stock. On October 22, 2020, analysts increased their price target for LRCX shares from 415 to 420.

The Average True Range (ATR) for Lam Research Corporation is set at 13.01, with the Price to Sales ratio for LRCX stock in the period of the last 12 months amounting to 5.38. The Price to Book ratio for the last quarter was 10.72, with the Price to Cash per share for the same quarter was set at 44.77. Price to Free Cash Flow for LRCX in the course of the last twelve months was 42.07 with Quick ratio for the last quarter at 2.70.

Trading performance analysis for LRCX stock

Lam Research Corporation [LRCX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 13.15. With this latest performance, LRCX shares gained by 15.60% in over the last four-week period, additionally plugging by 50.61% over the last 6 months – not to mention a rise of 45.08% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LRCX stock in for the last two-week period is set at 71.95, with the RSI for the last a single of trading hit 75.02, and the three-weeks RSI is set at 65.86 for Lam Research Corporation [LRCX]. The present Moving Average for the last 50 days of trading for this stock 341.13, while it was recorded at 368.72 for the last single week of trading, and 309.37 for the last 200 days.

Lam Research Corporation [LRCX]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Lam Research Corporation [LRCX] shares currently have an operating margin of +26.62 and a Gross Margin at +45.88. Lam Research Corporation’s Net Margin is presently recorded at +22.43.

Return on Total Capital for LRCX is now 26.23, given the latest momentum, and Return on Invested Capital for the company is 23.92. Return on Equity for this stock inclined to 45.74, with Return on Assets sitting at 16.96. When it comes to the capital structure of this company, Lam Research Corporation [LRCX] has a Total Debt to Total Equity ratio set at 115.90. Additionally, LRCX Total Debt to Total Capital is recorded at 53.68, with Total Debt to Total Assets ending up at 41.18. Long-Term Debt to Equity for the company is recorded at 98.71, with the Long-Term Debt to Total Capital now at 45.72.

Reflecting on the efficiency of the workforce at the company, Lam Research Corporation [LRCX] managed to generate an average of $199,270 per employee. Receivables Turnover for the company is 5.65 with a Total Asset Turnover recorded at a value of 0.76.Lam Research Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.70 and a Current Ratio set at 3.30.

Lam Research Corporation [LRCX]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Lam Research Corporation posted 4.01/share EPS, while the average EPS was predicted by analysts to be reported at 3.85/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 4.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LRCX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Lam Research Corporation go to 17.79%.

An analysis of insider ownership at Lam Research Corporation [LRCX]

There are presently around $50,239 million, or 89.60% of LRCX stock, in the hands of institutional investors. The top three institutional holders of LRCX stocks are: VANGUARD GROUP INC with ownership of 12,083,759, which is approximately -0.045% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 11,406,573 shares of the stock with an approximate value of $4.56 billion in LRCX stocks shares; and AMERIPRISE FINANCIAL INC, currently with $2.7 billion in LRCX stock with ownership of nearly 3.6% of the company’s market capitalization.

Positions in Lam Research Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 527 institutional holders increased their position in Lam Research Corporation [NASDAQ:LRCX] by around 12,503,668 shares. Additionally, 466 investors decreased positions by around 11,487,914 shares, while 133 investors held positions by with 101,696,972 shares. The mentioned changes placed institutional holdings at 125,688,554 shares, according to the latest SEC report filing. LRCX stock had 119 new institutional investments in for a total of 1,227,657 shares, while 92 institutional investors sold positions of 713,956 shares during the same period.

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