Lam Research Corp. (NASDAQ: LRCX) shares rose in value Monday Dec 19 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Goldman Sachs Group Inc. upgraded shares of Lam Research Corp. (NASDAQ: LRCX) from Neutral to Conviction-Buy today. The company currently has a rating of Conviction-Buy on the shares. The one-year price target of $115.78 is higher than the opening price of $106.73, that has caused a number of other analysts to report on the stock in recent days. Looking back over the last year, Lam Research Corp. stock has a high of $108.60. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue recurring revisions, often followed by a price target change.
Lam Research Corp. (NASDAQ: LRCX) shares last traded at $107.67, a jump of $3.22 or 3.09% over the previous closing price. Opening at $106.73, they ranged from $106.53 and $108.60 throughout the day.
Lam Research Corp. (NASDAQ: LRCX) now has a market cap of 17.53B.
Lam Research Corp. (NASDAQ: LRCX) Average Daily Trading Volume
The stock’s average daily volume is 2,674,730 shares out of a total float 162,354,000 and some 375,894 shares traded hands yesterday, below the average. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good validation 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.
Traders are able to make make educated trades when they track the trading habits of professional investors.
Trades for Lam Research Corp. (NASDAQ: LRCX) have ranged from $63.10 – 108.6000, and the stock now has a 50-day MA of $101.90 and 200-day MA of $93.38. Today’s last price is 0.85%% under the 52 week high of $108.60.
Earnings growth is an important factor to consider when investing in stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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