Lam Research (NASDAQ:LRCX) Trading Down 0.6% - Should You Sell?

Lam Research Co. (NASDAQ:LRCX - Get Free Report)'s stock price dropped 0.6% on Monday . The stock traded as low as $73.76 and last traded at $74.32. Approximately 1,494,638 shares were traded during trading, a decline of 87% from the average daily volume of 11,248,933 shares. The stock had previously closed at $74.80.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on LRCX shares. Stifel Nicolaus reiterated a "buy" rating and set a $100.00 price objective (down from $105.00) on shares of Lam Research in a research note on Thursday, October 24th. BNP Paribas raised shares of Lam Research to a "hold" rating in a report on Thursday, October 24th. Needham & Company LLC reissued a "buy" rating and issued a $100.00 target price on shares of Lam Research in a report on Thursday, October 24th. Wells Fargo & Company cut their price objective on Lam Research from $88.00 to $85.00 and set an "equal weight" rating for the company in a research report on Thursday, October 24th. Finally, Cantor Fitzgerald restated a "neutral" rating and issued a $100.00 target price on shares of Lam Research in a research note on Thursday, October 24th. Seven equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and an average target price of $97.03.

Lam Research Price Performance

The company's 50 day moving average is $77.94 and its 200-day moving average is $88.82. The firm has a market capitalization of $96.97 billion, a price-to-earnings ratio of 24.00, a P/E/G ratio of 1.18 and a beta of 1.48. The company has a current ratio of 2.53, a quick ratio of 1.74 and a debt-to-equity ratio of 0.53.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results on Wednesday, October 23rd. The semiconductor company reported $0.86 EPS for the quarter, topping the consensus estimate of $0.81 by $0.05. The business had revenue of $4.17 billion during the quarter, compared to the consensus estimate of $4.06 billion. Lam Research had a net margin of 26.02% and a return on equity of 50.60%. Lam Research's revenue was up 19.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $6.85 EPS. Equities research analysts anticipate that Lam Research Co. will post 3.52 earnings per share for the current year.

Lam Research Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 1st. Investors of record on Tuesday, September 17th were paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.24%. The ex-dividend date of this dividend was Tuesday, September 17th. Lam Research's dividend payout ratio (DPR) is currently 29.77%.

Insider Activity at Lam Research

In related news, CAO Christina Correia sold 647 shares of the firm's stock in a transaction dated Tuesday, October 1st. The stock was sold at an average price of $817.51, for a total value of $528,928.97. Following the sale, the chief accounting officer now directly owns 4,267 shares of the company's stock, valued at $3,488,315.17. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.29% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Creative Planning raised its holdings in Lam Research by 2.5% during the 3rd quarter. Creative Planning now owns 47,377 shares of the semiconductor company's stock worth $38,664,000 after purchasing an additional 1,146 shares during the last quarter. Vest Financial LLC raised its stake in Lam Research by 68.7% during the third quarter. Vest Financial LLC now owns 35,991 shares of the semiconductor company's stock worth $29,372,000 after buying an additional 14,658 shares during the last quarter. Benson Investment Management Company Inc. acquired a new position in Lam Research in the third quarter valued at $5,182,000. Symmetry Investments LP bought a new stake in Lam Research during the second quarter valued at $3,229,000. Finally, Vontobel Holding Ltd. grew its holdings in Lam Research by 38.4% during the 3rd quarter. Vontobel Holding Ltd. now owns 120,736 shares of the semiconductor company's stock worth $98,530,000 after acquiring an additional 33,489 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.