Lam Research Corp. (NASDAQ: LRCX) shares rose on Monday Nov 21 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Lam Research Corp. (NASDAQ: LRCX) had its price target increased by equities researchers at Stifel Nicolaus from $110.00 to $116.00. Stifel Nicolaus currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Lam Research Corp. has secured a consensus one-year price target of $110.89, higher than the opening price of $104.91. Lam Research Corp. stock has a 52-week high of $107.25.
Shares of Lam Research Corp. (NASDAQ: LRCX) opened at $104.91 on Monday and traded in a range between, $104.66 and $105.48, and last traded at $104.87, which represents an increase of $0.16 or 0.15% over the previous closing price.
Lam Research Corp. (NASDAQ: LRCX) currently has a market cap of 17.08B.
Lam Research Corp. (NASDAQ: LRCX) Average Daily Trading Volume
The stock’s average daily volume is 2,601,990 shares out of a total float 162,359,000 and some 289,539 shares crossed the trading desk yesterday, lower than normal. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine heavy volume growth or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are 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 investors to make those trends work in their favor and increase the number of successful trades.
Trades for Lam Research Corp. (NASDAQ: LRCX) have ranged from $63.10 – 107.25, and the stock now has a 50-day MA of $97.99 and 200-day MA of $89.40. Today’s last price is 2.22%% under the 52 week high of $107.25.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.
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