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Lam Research Corporation (NASDAQ:LRCX): A Fundamentally Weighted Stock for Long-Term Investors

Lam Research Corporation (NASDAQ:LRCX) Relative Strength Index (RSI) is 59.16, with weekly volatility at 2.25% and ATR at 22.23. The LRCX stock’s 52-week price range has touched low of $265.36 and a $669.00 high. Intraday shares traded counted 0.83 million, which was 49.19% higher than its 30-day average trading volume of 1.64M. Its shares traded higher over the last trading session, gaining 0.64% on 05/28/21. The shares fell to a low of $647.985 before closing at $649.85. LRCX’s previous close was $645.70 while the outstanding shares total 142.68M. The firm has a beta of 1.28, a 12-month trailing P/E ratio of 27.44, and a growth ratio of 0.87.

Investors have identified the Semiconductor Equipment & Materials 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 $92.09 billion, 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 3.67 billion on their books with 825.43 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 11.32 billion total, with 3.61 billion as their total liabilities.

LRCX were able to record 1.91 billion as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by -1.24 billion. In cash movements, the company had a total of 2.15 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 08/04/2021 quarter of the year, Lam Research Corporation recorded a total of 3.85 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 34.93% coming in sequential stages and their sales for the 08/04/2021 quarter increasing by 10.17%.

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 2.07 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.78 billion. This allows shareholders to hold on to 142.68M with the recently reported earning now reading 7.51 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (7.49 cents a share).

Having a look at the company’s valuation, the company is expected to record 32.41 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.

Is the stock of LRCX attractive?

In related news, President and CEO, ARCHER TIMOTHY sold 4,465 shares of the company’s stock in a transaction that recorded on May 10. The sale was performed at an average price of 621.41, for a total value of 2,774,596. As the sale deal closes, the Senior Vice President, Meikle Scott Gerald now sold 500 shares of the company’s stock, valued at 260,800. Also, Chief Legal Officer & SVP, Hahn Ava sold 721 shares of the company’s stock in a deal that was recorded on Mar 03. The shares were price at an average price of 570.75 per share, with a total market value of 411,511. Following this completion of acquisition, the Executive Vice President & CTO, Gottscho Richard A now holds 537 shares of the company’s stock, valued at 306,493. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

17 out of 24 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Lam Research Corporation. 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 $724.50.

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