Is Lam Research Corporation (LRCX) A Good Stock To Buy?

Seeing as Lam Research Corporation (NASDAQ:LRCX) has faced a decline in interest from the smart money, logic holds that there is a sect of hedge funds that slashed their entire stakes last quarter. Interestingly, Charles Clough’s Clough Capital Partners sold off the biggest stake of the “upper crust” of funds watched by Insider Monkey, worth about $54 million in stock. Leon Shaulov’s fund, Maplelane Capital, also sold off its position, worth about $25.2 million. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lam Research Corporation (NASDAQ:LRCX) but similarly valued. We will take a look at EQT Corporation (NYSE:EQT), Laboratory Corp. of America Holdings (NYSE:LH), Markel Corporation (NYSE:MKL), and SK Telecom Co., Ltd. (ADR) (NYSE:SKM). This group of stocks’ market caps are similar to LRCX’s market cap.

As you can see these stocks had an average of 24 funds with bullish positions and the average amount invested in these stocks was $860 million. That figure was $2.03 million in LRCX’s case. Laboratory Corp. of America Holdings (NYSE:LH) is the most popular stock in this table. On the other hand SK Telecom Co., Ltd. (ADR) (NYSE:SKM) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Lam Research Corporation (NASDAQ:LRCX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None