Lam Research Corp. (NASDAQ: LRCX) shares rose on Monday January 23 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Lam Research Corp. (NASDAQ: LRCX) had its price target boosted by equities researchers at DA Davidson from $0.00 to $140.00. With a rating of on the shares, Lam Research Corp. has a 52-week high of $114.11. The one-year price target of $118.83 is above the opening price of $113.01, resulting a fair amount of other analysts to report on the stock in recent days.
Yesterday Lam Research Corp. (NASDAQ: LRCX) shares last traded at $112.99, which represents an increase of $0.64 over the previous closing price. Opening at $113.01, they fluctuated from $112.81 and $114.11 throughout the day.
Lam Research Corp. (NASDAQ: LRCX) currently has a market cap of 18.40B.
Lam Research Corp. (NASDAQ: LRCX) Average Daily Trading Volume
The stock’s average daily volume is 1,962,260 shares out of a total float 162,347,000 and some 705,314 shares traded hands yesterday, 32 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
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 identifying 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 – 114.11, and the stock now has a 50-day MA of $106.79 and 200-day MA of $97.42. Today’s last price is 0.98%% lower than the 52 week high of $114.11.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% for a 3 year period.
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