Insider’s View: Deciphering Lam Research Corp (LRCX)’s Financial Health Through Ratios

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The price of Lam Research Corp (NASDAQ: LRCX) closed at $81.30 in the last session, up 1.26% from day before closing price of $80.29. In other words, the price has increased by $1.26 from its previous closing price. On the day, 11.35 million shares were traded.

Ratios:

We take a closer look at LRCX’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 18.42 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 25.74. For the most recent quarter (mrq), Quick Ratio is recorded 1.73 and its Current Ratio is at 2.54. In the meantime, Its Debt-to-Equity ratio is 0.57 whereas as Long-Term Debt/Eq ratio is at 0.51.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Susquehanna on February 20, 2025, Upgraded its rating to Positive and sets its target price to $125 from $75 previously.

On January 30, 2025, Cantor Fitzgerald Upgraded its rating to Overweight which previously was Neutral but kept the price unchanged to $100.

Bernstein Upgraded its Mkt Perform to Outperform on January 30, 2025, whereas the target price for the stock was revised from $85 to $91.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Feb 20 ’25 when Varadarajan Seshasayee sold 110,080 shares for $90.00 per share. The transaction valued at 9,907,200 led to the insider holds 179,084 shares of the business.

Varadarajan Seshasayee bought 110,080 shares of LRCX for $9,907,200 on Feb 20 ’25. On Nov 01 ’24, another insider, Mayer Bethany, who serves as the Director of the company, sold 1,660 shares for $75.16 each. As a result, the insider received 124,757 and left with 28,930 shares of the company.

Valuation Measures:

As of this moment, Lam’s Price-to-Earnings (P/E) ratio for their current fiscal year is 24.70, and their Forward P/E ratio for the next fiscal year is 20.93. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.58. For the stock, the TTM Price-to-Sale (P/S) ratio is 6.44 while its Price-to-Book (P/B) ratio in mrq is 11.86.

Stock Price History:

Over the past 52 weeks, LRCX has reached a high of $113.00, while it has fallen to a 52-week low of $68.87. The 50-Day Moving Average of the stock is 3.34%, while the 200-Day Moving Average is calculated to be -3.40%.

Shares Statistics:

A total of 1.28B shares are outstanding, with a floating share count of 1.28B. Insiders hold about 0.44% of the company’s shares, while institutions hold 82.08% stake in the company.

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