TD Cowen has recently reiterated Lam Research Corporation (LRCX) stock to Buy rating, as announced on August 1, 2024, according to Finviz. Earlier, on May 13, 2024, Jefferies had initiated the stock to Buy, setting a price target of $1100 for LRCX stock. TD Cowen also reiterated Buy rating with a price target of $1000. Additionally, B. Riley Securities raised Buy rating on April 19, 2024, with a target price of $1100. Needham analysts, in their report published on April 18, 2024, also reiterated Buy rating and set a price target of $1030 for Lam Research Corporation’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Lam Research Corporation (LRCX) Stock Trading Recap
On Thursday, Lam Research Corporation (LRCX) stock saw a modest uptick, ending the day at $76.57 which represents a slight increase of $3.71 or 5.09% from the prior close of $72.86. The stock opened at $76.18 and touched a low of $74.45 during the day, reaching a high of $77.48. The volume of shares traded was 23.18 million exceeding the average volume of 13.51 million.
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LRCX Stock Performance and Moving Averages
In recent trading, Lam Research Corporation (LRCX) stock price has shown some volatility, fluctuating 4.69% over the last five trades and -4.73% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -15.06%, and it has plunged by -14.41% in the previous three months. Currently, LRCX is trading at -2.77%, -3.60%, and -14.63% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, LRCX, a Technology sector stock, is trading -32.24% below its 52-week high but remains 33.30% above its 52-week low. The Average True Range (ATR) (14 days) of 3.08 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Lam Research Corporation’s Profitability and Valuation Ratios
Lam Research Corporation’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 29.23% and a profit margin of 26.02%, with a gross margin of -15.06%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Lam Research Corporation’s market capitalization stands at $99.24 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 24.78, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 18.27. Additionally, the Price-to-Sales Ratio is 6.37, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 11.68, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.41% of Lam Research Corporation (LRCX)’s shares, while financial institutions hold 85.91%.
Notable insider trades include Correia Christina, CVP, Chief Accounting Officer at Lam Research Corporation (LRCX), who sold 647 shares on Oct 01 ’24, at $817.51 each, totaling $0.53 million. On Jul 12 ’24, Fernandes Neil J, Senior Vice President, sold 1620 shares for $1056.99 each, amounting to $1.71 million. Additionally, on Jun 28 ’24, ARCHER TIMOTHY sold 9650 shares at $1070.39 each, generating $10.33 million.
