The stock price of Lam Research Corp. (NASDAQ: LRCX) has surged by 0.76 when compared to previous closing price of 1072.82, but the company has seen a 2.39% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-07-01 that Lam Research is part of the semiconductor capital equipment industry, which was in a cyclical downturn in 2023. Industry experts anticipate semiconductor capital equipment spending to recover in the latter half of 2024, potentially boosting the company’s stock performance in 2025. It benefits from AI adoption and the need for higher performance and more power-efficient chips.
Is It Worth Investing in Lam Research Corp. (NASDAQ: LRCX) Right Now?
Lam Research Corp. (NASDAQ: LRCX) has a higher price-to-earnings ratio of 39.75x compared to its average ratio, The 36-month beta value for LRCX is at 1.49. Analysts have varying views on the stock, with 12 analysts rating it as a “buy,” 4 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
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The public float for LRCX is 130.11M, and currently, shorts hold a 1.79% of that float. The average trading volume for LRCX on July 04, 2024 was 969.73K shares.
LRCX’s Market Performance
LRCX stock saw an increase of 2.39% in the past week, with a monthly gain of 15.54% and a quarterly increase of 10.49%. The volatility ratio for the week is 3.03%, and the volatility levels for the last 30 days are 3.05% for Lam Research Corp. (LRCX). The simple moving average for the past 20 days is 4.98% for LRCX’s stock, with a 30.26% simple moving average for the past 200 days.
Analysts’ Opinion of LRCX
Many brokerage firms have already submitted their reports for LRCX stocks, with Jefferies repeating the rating for LRCX by listing it as a “Buy.” The predicted price for LRCX in the upcoming period, according to Jefferies is $1100 based on the research report published on May 13, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see LRCX reach a price target of $1000, previously predicting the price at $975. The rating they have provided for LRCX stocks is “Buy” according to the report published on April 25th, 2024.
B. Riley Securities gave a rating of “Buy” to LRCX, setting the target price at $1100 in the report published on April 19th of the current year.
LRCX Trading at 11.94% from the 50-Day Moving Average
After a stumble in the market that brought LRCX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -1.89% of loss for the given period.
Volatility was left at 3.05%, however, over the last 30 days, the volatility rate increased by 3.03%, as shares surge +17.34% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +24.73% upper at present.
During the last 5 trading sessions, LRCX rose by +2.56%, which changed the moving average for the period of 200-days by +73.76% in comparison to the 20-day moving average, which settled at $1,037.72. In addition, Lam Research Corp. saw 38.01% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LRCX starting from Correia Christina, who sale 647 shares at the price of $1062.26 back on Jul 01 ’24. After this action, Correia Christina now owns 4,914 shares of Lam Research Corp., valued at $687,282 using the latest closing price.
ARCHER TIMOTHY, the President and CEO of Lam Research Corp., sale 13,743 shares at $1067.12 during a trade that took place back on Jun 28 ’24, which means that ARCHER TIMOTHY is holding 99,893 shares at $14,665,405 based on the most recent closing price.
Stock Fundamentals for LRCX
Current profitability levels for the company are sitting at:
- 0.28 for the present operating margin
- 0.47 for the gross margin
The net margin for Lam Research Corp. stands at 0.25. The total capital return value is set at 0.29. Equity return is now at value 43.95, with 19.24 for asset returns.
Based on Lam Research Corp. (LRCX), the company’s capital structure generated 0.38 points at debt to capital in total, while cash flow to debt ratio is standing at 0.99. The debt to equity ratio resting at 0.62. The interest coverage ratio of the stock is 21.7.
Currently, EBITDA for the company is 5.6 billion with net debt to EBITDA at -0.15. When we switch over and look at the enterprise to sales, we see a ratio of 9.89. The receivables turnover for the company is 6.46for trailing twelve months and the total asset turnover is 0.78. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.82.
Conclusion
In conclusion, Lam Research Corp. (LRCX) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
