Zacks Investment Research lowered 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.”

Several other brokerages have also recently issued reports on LRCX. BidaskClub raised shares of Lam Research from a sell rating to a hold rating in a report on Thursday, July 19th. KeyCorp decreased their target price on shares of Lam Research from $283.00 to $261.00 and set an overweight rating for the company in a report on Friday, July 27th. ValuEngine cut shares of Lam Research from a sell rating to a strong sell rating in a report on Wednesday, September 12th. Citigroup decreased their target price on shares of Lam Research from $216.00 to $177.00 and set a buy rating for the company in a report on Tuesday, September 25th. Finally, Morgan Stanley decreased their target price on shares of Lam Research from $219.00 to $208.00 and set an overweight rating for the company in a report on Friday, July 27th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of Buy and an average target price of $241.85.

Lam Research stock traded up $5.99 during trading hours on Wednesday, hitting $143.61. The stock had a trading volume of 3,757,923 shares, compared to its average volume of 3,356,249. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.31 and a current ratio of 2.90. The stock has a market capitalization of $23.10 billion, a PE ratio of 8.04, a price-to-earnings-growth ratio of 0.59 and a beta of 1.33. Lam Research has a 12-month low of $135.99 and a 12-month high of $234.88.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Thursday, July 26th. The semiconductor company reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.94 by $0.37. The business had revenue of $3.13 billion during the quarter, compared to analysts’ expectations of $3.08 billion. Lam Research had a net margin of 21.49% and a return on equity of 47.14%. The business’s revenue for the quarter was up 33.3% compared to the same quarter last year. During the same period in the previous year, the company earned $3.11 earnings per share. As a group, equities research analysts forecast that Lam Research will post 15.51 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 26th. Stockholders of record on Wednesday, September 12th were paid a $1.10 dividend. The ex-dividend date was Tuesday, September 11th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 3.06%. Lam Research’s dividend payout ratio is presently 24.62%.

Several hedge funds have recently made changes to their positions in the company. NuWave Investment Management LLC bought a new stake in Lam Research during the second quarter valued at approximately $100,000. Clear Perspective Advisors LLC bought a new stake in Lam Research during the second quarter valued at approximately $108,000. Signet Financial Management LLC grew its position in Lam Research by 21,700.0% during the second quarter. Signet Financial Management LLC now owns 654 shares of the semiconductor company’s stock valued at $113,000 after buying an additional 651 shares during the period. Ruggie Capital Group bought a new stake in Lam Research during the second quarter valued at approximately $134,000. Finally, Financial Gravity Wealth Inc. bought a new stake in Lam Research during the first quarter valued at approximately $165,000. Hedge funds and other institutional investors own 89.21% of the company’s stock.

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.

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