Lam Research Corporation (LRCX) Insiders Are Buying, Here’s Why

At Lam Research Corporation (NASDAQ:LRCX), the ratio of insider selling to insider buying over a quarter is running at 0. Could this be a sign something is cheering insiders? LRCX recorded 0 sales count on the open market in the last three months. They sold nearly zero shares while purchases amounted to 65,684 shares that period. Looking even further back to 12 months, corporate insiders offloaded 273,174 shares when buyers snapped up 121,897 shares. The 12-month’s totals signify about a 2.24-to-1 sell/buy ratio.

Anstice Martin B parted with a total of 25.12 thousand shares of Lam Research Corporation (LRCX) at average share price of $203.83. This insider trade in the company took place on 05/22/2018. The total for the sales was set at $5.12 million. After this transaction, the CEO account balance stood at 129.26 thousand shares. The stock lost -21 percent since that insider sale. On 05/01/2018, Archer Timothy, President and COO, sold 5 thousand shares at a price per share of $190. This removed 950 thousand shares from the insider’s fortune and the stock saw a -15.25 percent retreat in value since the news became public. This transaction left 71.06 thousand shares in the President and COO account.

On 04/20/2018, Senior Vice President Lord Patrick J performed a sale transaction worth $1.2 million. This sale at $193.65 each has eliminated 6.21 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -16.85 percent decrease since the transaction was reported. The insider now is left with 9.76 thousand shares remaining in the account. Archer Timothy, who performs the President and COO job, sold 5 thousand shares for $1.05 million. The disposal occurred on 04/17/2018 was priced at $210 per share. The share price plunged -23.32 percent since the reporting date. Archer Timothy now left with a stake of 75.94 thousand LRCX stock worth $11.37 million after the insider selling.

The 12-month median price target for Lam Research Corporation (LRCX) assigned by the analysts stands at $185, which represents a return potential of 23.59 percent when compared to the closing price of the stock of $149.69 on Tuesday, December 04. The lowest price target for the stock is $158 — slightly more than 5.55 percent from LRCX’s current share price. The stock will probably climb 31.78 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $278-month high price target. This represents a whopping 85.72 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 51.02 on daily chart, which may remain a cause for concern. If the price breaks below $141.9 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $156.29 mark may result into a pull-back move towards $162.89 level. The stock is currently hovering around the first support level of $145.8. Below this, the next support is placed in the zone of $141.9. Till the time, the LRCX stock trades above this level, bulls have nothing to fear.

Shares of Lam Research Corporation (LRCX) are trading at a P/E ratio of 20.07 times earnings reported for the past 12 months. The industry LRCX operates in has an average P/E of 22.41. Its P/E ratio went as low as 15.77X and as high as 67.53 over the 5-year span. Further, it is sporting a 2.13 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.42. 46.4 percent is the gross profit margin for Lam Research Corporation and operating margin sits at 28.1 percent. Along with this, the net profit margin is 21.3 percent.

On 4th of December, Lam Research Corporation (NASDAQ:LRCX) shares ended lower after a volatile session. The shares dropped -11.33 points or -7.04 percent at $149.69 with a heavy trade volume of 5.181 million shares. After opening the session at $158.53, the shares went as high as $159 and as low as $148.505, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $23.3 billion and now has 155.66 million shares outstanding. Lam Research Corporation (LRCX) stock has lost -1.2 percent of market value in 21 trading days.

In last reported earnings results, LRCX earned $3.36 per share, better than the $3.22, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.33B, better than the $2.31B analysts expected. Earnings are estimated to increase by 78.2 percent this year, 14.68 percent next year and continue to increase by 11.07 percent annually for the next 5 years. Investors will get their next glimpse of LRCX’s Q2 earnings on January 23. Analysts are forecasting revenue to suffer decline of -3 percent to $2.5B in the next fiscal quarter, while earnings are seen soaring by nearly -15.44 percent to $3.67 per share. History has shown that shares in Lam Research Corporation have gone up on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

LRCX stock has a trailing 3-year beta of 1.35, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $17.07 a share in the trailing twelve months. The stock’s value has fallen -18.68 percent year to date (YTD) against a decline of -17.18 percent in 12 month’s time. The company’s shares still trade -36.27 percent away from its 1-year high of $234.88 and 12.19 percent up from 52-week low of $133.42. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.