Lam Research Corp. (NASDAQ: LRCX) shares slid back in value Thursday December 29 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Analysts at Zacks Investment Research upgraded shares of Lam Research Corp. (NASDAQ: LRCX) from Hold to Buy today. With a rating of Buy on the shares, Lam Research Corp. has a 52-week high of $110.35. A number of other analysts have commented on the company recently, and Lam Research Corp. has earned a consensus one-year price target of $116.28, higher than the opening price of $107.48, a difference of 10.90 percent. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Lam Research Corp. (NASDAQ: LRCX) shares last traded at $106.69, a decrease of $0.88 per share or -0.82% compared to the previous closing price. Opening at $107.48, they fluctuated from $106.60 and $107.52 throughout the day.
Lam Research Corp. (NASDAQ: LRCX) currently has a market cap of 17.37B.
Lam Research Corp. (NASDAQ: LRCX) Average Daily Trading Volume
120,077 shares traded hands yesterday, lower than the average, out of a total float 162,354,000. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Lam Research Corp. (NASDAQ: LRCX) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Lam Research Corp. (NASDAQ: LRCX) have ranged from $63.10 – 110.35, and the stock now has a 50-day MA of $104.30 and 200-day MA of $94.76. Today’s last price is 3.32%% below the 52 week high of $110.35.
Earnings growth is an important factor to research when investing in stocks and investors seek companies that have raised their earnings by at least 25% for a 3 year period.
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