Lam Research Corp (NASDAQ: LRCX)’s stock price has soared by 3.32 in relation to previous closing price of 76.47. Nevertheless, the company has seen a gain of 2.96% in its stock price over the last five trading days. seekingalpha.com reported 2025-03-07 that I rate Lam Research as a Buy due to its leading position in semiconductor processing equipment, crucial for the AI and technology boom. Despite geopolitical risks and potential tariffs, Lam’s strong market position and significant revenue growth make it a resilient investment. Lam’s financial health is robust, with impressive 5-year growth in revenue, net income, and free cash flow, supporting long-term profitability.
Is It Worth Investing in Lam Research Corp (NASDAQ: LRCX) Right Now?
The price-to-earnings ratio for Lam Research Corp (NASDAQ: LRCX) is above average at 24.01x. The 36-month beta value for LRCX is also noteworthy at 1.53. There are mixed opinions on the stock, with 19 analysts rating it as a “buy,” 3 rating it as “overweight,” 10 rating it as “hold,” and 0 rating it as “sell.”
The public float for LRCX is 1.28B, and at present, short sellers hold a 2.27% of that float. The average trading volume of LRCX on March 10, 2025 was 12.75M shares.
LRCX’s Market Performance
LRCX’s stock has seen a 2.96% increase for the week, with a -3.58% drop in the past month and a 0.86% gain in the past quarter. The volatility ratio for the week is 5.43%, and the volatility levels for the past 30 days are at 4.02% for Lam Research Corp The simple moving average for the last 20 days is -3.10% for LRCX’s stock, with a simple moving average of -5.53% for the last 200 days.
Analysts’ Opinion of LRCX
Many brokerage firms have already submitted their reports for LRCX stocks, with Susquehanna repeating the rating for LRCX by listing it as a “Positive.” The predicted price for LRCX in the upcoming period, according to Susquehanna is $125 based on the research report published on February 20, 2025 of the current year 2025.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see LRCX reach a price target of $100. The rating they have provided for LRCX stocks is “Overweight” according to the report published on January 30th, 2025.
Bernstein gave a rating of “Outperform” to LRCX, setting the target price at $91 in the report published on January 30th of the current year.
LRCX Trading at 0.07% 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 -30.08% of loss for the given period.
Volatility was left at 4.02%, however, over the last 30 days, the volatility rate increased by 5.43%, as shares sank -4.61% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.06% upper at present.
During the last 5 trading sessions, LRCX rose by +2.96%, which changed the moving average for the period of 200-days by -13.37% in comparison to the 20-day moving average, which settled at $81.54. In addition, Lam Research Corp saw 9.39% 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 Varadarajan Seshasayee, who sale 110,080 shares at the price of $90.00 back on Feb 20 ’25. After this action, Varadarajan Seshasayee now owns 179,084 shares of Lam Research Corp, valued at $9,907,200 using the latest closing price.
Varadarajan Seshasayee, the Officer of Lam Research Corp, proposed sale 110,080 shares at $90.00 during a trade that took place back on Feb 20 ’25, which means that Varadarajan Seshasayee is holding shares at $9,907,200 based on the most recent closing price.
Stock Fundamentals for LRCX
Current profitability levels for the company are sitting at:
- 0.3 for the present operating margin
- 0.48 for the gross margin
The net margin for Lam Research Corp stands at 0.26. The total capital return value is set at 0.33. Equity return is now at value 50.42, with 22.23 for asset returns.
Based on Lam Research Corp (LRCX), the company’s capital structure generated 0.36 points at debt to capital in total, while cash flow to debt ratio is standing at 0.91. The debt to equity ratio resting at 0.57. The interest coverage ratio of the stock is 26.23.
Currently, EBITDA for the company is 4.91 billion with net debt to EBITDA at -0.13. When we switch over and look at the enterprise to sales, we see a ratio of 6.21. The receivables turnover for the company is 4.9for trailing twelve months and the total asset turnover is 0.82. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.54.
Conclusion
In summary, Lam Research Corp (LRCX) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
