Shares of Lam Research Corporation (NASDAQ:LRCX) recorded 3.59% gain during trading session on March 14th, 2019. The script traded as low as $171 and last traded at $176.53. 3.62 million shares changed exchanged hands during trading, a drop of -34.04% from the 30-day average session volume of 2.70M shares. The firm had previously closed at $170.41. The company has $155.02M outstanding shares, a price-to-earnings ratio of 10.85, price-to-earnings-growth ratio of 2.52and a beta of 1.56. The company has a RSI of 59.96, ATR of 4.18 and a volatility of 2.63% this week. LRCX has a 52 week low price of $122.64 and a 52 week high price of $227.82.
Investors have identified the tech company Lam Research Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 27.37B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Lam Research Corporation (LRCX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LRCX, the company has in raw cash 3.36 billion on their books with 343.94 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 7.36 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
LRCX were able to record 1.2 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 1.15 billion. In cash movements, the company had a total of 1.36 billion as operating cash flow.
Potential earnings growth for Lam Research Corporation (LRCX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Lam Research Corporation recorded a total of 2.52 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.02% coming in sequential stages and their sales for the third quarter increasing by 0.08%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.38 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.15 billion. This allows shareholders to hold on to 155.02M with the revenue now reading 3510 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (3.28 cents a share).
Is the stock of LRCX attractive?
Having a look at the company’s valuation, the company is expected to record 14.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LRCX sounds very interesting.
In related news, Senior Vice President JENNINGS KEVIN sold 7,016 shares of the company’s stock in a transaction that recorded on March 4th, 2019. The sale was performed at an average price of 177.35, for a total value of 1,244,288. As the sale deal closes, the Senior Vice President JENNINGS KEVIN now sold 1,553 shares of the company’s stock, valued at 275,922. Also, Senior Vice President JENNINGS KEVIN sold 1,692 shares of the company’s stock in a deal that was recorded on February 6th, 2019. The shares were sold at an average price of 180.00 per share, with a total market value of 8,887. Following this completion of acquisition, the Chief Executive Officer now holds 25,122 shares of the company’s stock, valued at 5,120,713. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
5 out of 21 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Lam Research Corporation stock. 0 analysts has assigned a Sell rating on the LRCX stock. The 12-month mean consensus price target for the company’s shares has been set at $192.58.