Lam Research (LRCX) Lowered to “Sell” at Zacks Investment Research

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Zacks Investment Research cut shares of Lam Research (NASDAQ:LRCX) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Lam Research’s top-line results continue to be impacted by weak PC demand. Also, oversupply and overcapacity of memory chips could impact Lam Research’s growth and sales figures as yields and output seem to be improving. Notably, the stock has underperformed the industry it belongs to over a year. However, robust demand for equipment and memory segment, strength in logic & foundry along with increased adoption rates of 3D NAND technology bodes well for its top-line growth. Further, the company’s popular etch and deposition technologies are suitable for the ongoing vertical scaling, multi-patterning, advanced packaging and advanced transistor architectures. This will help it rebound going forward.”

A number of other research firms also recently issued reports on LRCX. BidaskClub raised shares of Lam Research from a sell rating to a hold rating in a research note on Thursday, July 19th. KeyCorp decreased their price target on shares of Lam Research from $283.00 to $261.00 and set an overweight rating on the stock in a research note on Friday, July 27th. ValuEngine downgraded shares of Lam Research from a sell rating to a strong sell rating in a research note on Wednesday, September 12th. Citigroup decreased their price target on shares of Lam Research from $216.00 to $177.00 and set a buy rating on the stock in a research note on Tuesday, September 25th. Finally, Morgan Stanley decreased their price target on shares of Lam Research from $219.00 to $208.00 and set an overweight rating on the stock in a research note on Friday, July 27th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the company. Lam Research currently has a consensus rating of Buy and a consensus price target of $241.85.

Lam Research stock traded up $5.99 during mid-day trading on Wednesday, reaching $143.61. 3,757,923 shares of the company’s stock traded hands, compared to its average volume of 3,356,249. The company has a market cap of $23.10 billion, a price-to-earnings ratio of 8.04, a PEG ratio of 0.59 and a beta of 1.33. The company has a quick ratio of 2.31, a current ratio of 2.90 and a debt-to-equity ratio of 0.27. Lam Research has a 12-month low of $135.99 and a 12-month high of $234.88.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Thursday, July 26th. The semiconductor company reported $5.31 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $4.94 by $0.37. The company had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.08 billion. Lam Research had a net margin of 21.49% and a return on equity of 47.14%. Lam Research’s revenue was up 33.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.11 earnings per share. On average, equities research analysts anticipate that Lam Research will post 15.51 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 26th. Shareholders of record on Wednesday, September 12th were given a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a yield of 3.06%. The ex-dividend date of this dividend was Tuesday, September 11th. Lam Research’s dividend payout ratio (DPR) is 24.62%.

A number of hedge funds have recently bought and sold shares of LRCX. Financial Gravity Wealth Inc. bought a new position in Lam Research during the first quarter valued at $165,000. BB&T Securities LLC grew its holdings in shares of Lam Research by 39.8% in the first quarter. BB&T Securities LLC now owns 5,197 shares of the semiconductor company’s stock worth $1,055,000 after purchasing an additional 1,479 shares during the last quarter. Baird Financial Group Inc. grew its holdings in shares of Lam Research by 22.3% in the first quarter. Baird Financial Group Inc. now owns 4,572 shares of the semiconductor company’s stock worth $929,000 after purchasing an additional 835 shares during the last quarter. Platinum Investment Management Ltd. grew its holdings in shares of Lam Research by 204.5% in the first quarter. Platinum Investment Management Ltd. now owns 6,700 shares of the semiconductor company’s stock worth $1,361,000 after purchasing an additional 4,500 shares during the last quarter. Finally, Bayesian Capital Management LP bought a new position in shares of Lam Research in the first quarter worth about $366,000. Institutional investors and hedge funds own 89.21% 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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