Chip Stock Surges to Record High After Earnings Beat

At least 13 brokerages have raised their LRCX price targets

by Karee Venema

Published on Oct 24, 2019 at 3:00 PM

The U.S. stock market is mixed today, as Wall Street sifts through a deluge of earnings reports. Among individual names making notable moves today is weed stock Tilray Inc (NASDAQ:TLRY), aircraft issue Aircastle Limited (NYSE:AYR), and semiconductor processing equipment specialist Lam Research Corporation (NASDAQ:LRCX). Here's a quick roundup of what's moving the shares of TLRY, AYR, and LRCX.

Tilray Rallies Into Familiar Resistance

Tilray stock is up 10.7% at $24.91, after the Canada-based firm said it is importing medical cannabis to the U.S. to support a clinical trial to treat patients with breast cancer. Today's pop hardly puts a dent in the equity's longer-term deficit, with TLRY still down 64.2% year-to-date. Plus, the security's 30-day moving average is continuing to serve as stiff resistance for the pot stock.

TLRY options traders are in overdrive today, too, with more than 39,000 contracts on the tape -- more than two times what's typically seen at this point in the session. The weekly 11/22 22.50-strike call is most active, and it looks like one speculator may be rolling their October 22 calls up and out to the weekly series.

M&A Buzz Boosts Aircastle Stock

Aircastle is near the top of the New York Stock Exchange today, after the Connecticut-based company said it is evaluating strategic options, including a potential sale. At last check, AYR stock is up 8% at $25.77, earlier hitting an 11-year high of $26.74. The shares are now up 49.5% in 2019, but the $26 level has served as a pesky ceiling in recent years. In fact, the last time AYR closed above here on a weekly basis was December 2007.

Against this backdrop, analysts have mostly stayed on the sidelines when it comes to Aircastle. While two brokerages say the stock's a "strong buy," the other six in coverage maintain a "hold" or worse rating on AYR. Meanwhile, the average 12-month price target of $22.60 is a 12.2% discount to the equity's current perch.

Analysts Rush to Raise Lam Research Price Targets

Lam Research topped out at an all-time peak of $262.33 earlier, and was last seen up 11.7% at $260.51. This comes after the semiconductor name reported fiscal first-quarter earnings of $3.18 per share, and gave a stronger-than-expected current-quarter profit forecast. A rush of bullish analyst notes have rolled in, too, with Credit Suisse raising its price target all the way to $300.

LRCX options volume is running quick, with more than 40,000 calls and puts on the tape -- five times the expected intraday amount, and volume pacing in the 98th annual percentile. The weekly 10/25 series is hot, as short-term traders take positions ahead of expiration at tomorrow's close. Slightly longer-term speculators appear to be buying to open the weekly 11/22 250-strike call, betting on bigger gains over the next month.

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