Lam Research Co. (NASDAQ: LRCX – Get a rating) saw a significant drop in short-term interest rates in August. As of August 31, there was short interest totaling 1,830,000 shares, down 15.7% from the total of 2,170,000 shares as of August 15. Approximately 1.4% of the company’s shares are sold short. Based on an average daily volume of 1,410,000 shares, the short interest rate is currently 1.3 days.

Analysts set new price targets

A number of research analysts have commented on LRCX shares. StockNews.com upgraded Lam Research from a “buy” rating to a “hold” rating in a Friday, September 2 research note. Deutsche Bank Aktiengesellschaft cut its price target on Lam Research shares from $560.00 to $480.00 in a Monday, July 18 research report. Wells Fargo & Company raised its price target on Lam Research from $460.00 to $475.00 and gave the stock an “equal weight” rating in a Thursday, July 28 research report. B. Riley moved Lam Research shares from a “buy” rating to a “neutral” rating and lowered his price target for the company from $625.00 to $525.00 in a research note from the Wednesday, June 15. Finally, DA Davidson cut his price target on Lam Research shares from $575.00 to $550.00 in a Thursday, July 28 report. Ten investment analysts gave the stock a hold rating and eight gave the stock a buy rating. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $610.30.

Lam Research stock performance

Lam Research stock traded at $4.22 during Friday trading hours, hitting $409.22. 1,861,335 shares of the stock trade in hands, compared to its average volume of 1,232,480. The stock has a market cap of $56.06 billion, a price-earnings ratio of 12.50, a P /E/G of 0.93 and a beta of 1.36. The company’s 50-day moving average price is $461.43 and its 200-day moving average price is $475.26. The company has a debt ratio of 0.80, a current ratio of 2.69 and a quick ratio of 1.82. Lam Research has a 1-year low of $375.87 and a 1-year high of $731.85.

Lam Research (NASDAQ: LRCX – Get a rating) last released its quarterly earnings data on Wednesday, July 27. The semiconductor company reported earnings per share (EPS) of $8.83 for the quarter, beating the consensus estimate of $7.30 by $1.53. Lam Research had a return on equity of 75.71% and a net margin of 26.73%. The company posted revenue of $4.64 billion in the quarter, versus $4.21 billion expected by analysts. In the same quarter a year earlier, the company posted EPS of $8.09. The company’s revenue for the quarter increased 11.8% year over year. As a group, equity analysts expect Lam Research to post EPS of 37.31 for the current fiscal year.

Lam Research increases its dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 5. Investors of record on Wednesday, September 14 will receive a dividend of $1,725. This represents an annualized dividend of $6.90 and a yield of 1.69%. This is a positive change from Lam Research’s previous quarterly dividend of $1.50. The ex-dividend date is Tuesday, September 13. Lam Research’s dividend payout ratio is currently 21.07%.

Institutional entries and exits

Hedge funds have recently increased or reduced their stakes in the company. IndexIQ Advisors LLC increased its stake in Lam Research by 2.3% during the first quarter. IndexIQ Advisors LLC now owns 2,405 shares of the semiconductor company worth $1,293,000 after buying 55 more shares in the last quarter. Waldron Private Wealth LLC increased its stake in shares of Lam Research by 6.7% in the first quarter. Waldron Private Wealth LLC now owns 624 shares of the semiconductor company valued at $336,000 after acquiring 39 additional shares last quarter. AlphaCrest Capital Management LLC increased its stake in shares of Lam Research by 47.3% in the first quarter. AlphaCrest Capital Management LLC now owns 3,272 shares of the semiconductor company valued at $1,759,000 after acquiring 1,051 additional shares last quarter. Sequoia Financial Advisors LLC increased its stake in Lam Research by 6.0% in the first quarter. Sequoia Financial Advisors LLC now owns 3,956 shares of the semiconductor company valued at $2,126,000 after buying 224 more shares last quarter. Finally, Kentucky Retirement Systems Insurance Trust Fund increased its stake in Lam Research by 7.5% in the first quarter. The Kentucky Retirement Systems Insurance Trust Fund now owns 4,118 shares of the semiconductor company valued at $2,214,000 after buying 287 additional shares in the last quarter. 80.09% of the shares are currently held by hedge funds and other institutional investors.

Lam Research Company Profile

(Get a rating)

Lam Research Corporation designs, manufactures, markets, refurbishes and services semiconductor processing equipment used in the manufacture of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten plating applications; SABER electrochemical deposition products for copper interconnect transition which offers damascened copper fabrication; SOLA ultraviolet heat treatment products for film processing; and VECTOR plasma-enriched CVD ALD products.

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