Lam Research Corporation (NASDAQ:LRCX) Stock Has Average Target Price of $364.01 According to Brokerages

Key Points

• Analysts remain broadly bullish: Thirty-two brokerages give Lam Research a “Moderate Buy” consensus, with an average 12-month price target of $364.01.
• Quarterly results exceeded expectations: Lam Research reported $1.82 in EPS versus the $1.69 consensus and $6.72 billion in revenue, up 30% year over year.
• Dividend increased: The company raised its quarterly dividend from $0.26 to $0.33 per share, equivalent to $1.32 annually and a 0.4% yield.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) have been given an average rating of "Moderate Buy" by the thirty-two brokerages that are currently covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, twenty-six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $364.01.

Several equities analysts have issued reports on LRCX shares. Oppenheimer reiterated an "outperform" rating and set a $400.00 target price (up from $330.00) on shares of Lam Research in a research report on Monday, June 15th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. Bank of America lifted their target price on Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Jefferies Financial Group set a $335.00 price target on Lam Research and gave the stock a "buy" rating in a research note on Thursday, July 30th. Finally, Zacks Research upgraded Lam Research from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th.

Lam Research Stock Up 2.2%

Shares of NASDAQ:LRCX opened at $347.49 on Friday. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The firm has a 50 day simple moving average of $306.11 and a 200-day simple moving average of $302.26. The company has a market capitalization of $434.86 billion, a PE ratio of 60.33, a P/E/G ratio of 1.35 and a beta of 1.85. Lam Research has a twelve month low of $131.02 and a twelve month high of $438.50.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The firm had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. During the same quarter last year, the business posted $1.33 EPS. The firm's quarterly revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, equities analysts predict that Lam Research will post 9.32 EPS for the current fiscal year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be given a $0.33 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $1.32 annualized dividend and a yield of 0.4%. This is a positive change from Lam Research's previous quarterly dividend of $0.26. Lam Research's dividend payout ratio (DPR) is 22.92%.

Trending Headlines about Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Optimistic earnings outlook: An earnings preview argues that Lam Research’s rally could continue, supported by artificial-intelligence infrastructure spending and sustained demand for wafer-fabrication equipment. Investors are likely watching for evidence that growth will remain strong in the next report. Lam Research: This Rally Has Legs (Earnings Preview)
• Positive Sentiment: Analyst support: B. Riley raised its price target from $350 to $390 and maintained a “buy” rating. Bank of America’s designation of LRCX as a top pick also reinforces the view that equipment demand may be stronger than previously expected. Does Lam Research Being a BofA Top Pick Reframe Its Equipment Demand Narrative?
• Positive Sentiment: Strong financial performance: Lam’s latest quarterly results exceeded expectations, with earnings of $1.82 per share versus a $1.69 consensus estimate and revenue of $6.72 billion. Revenue increased 30% year over year, while the company also raised its dividend, strengthening the bullish case. Lam Research Stock Gains Ground on Strong Earnings and Dividend Hike

Insider Transactions at Lam Research

In other news, Director Abhijit Y. Talwalkar sold 18,282 shares of the company's stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 5,000 shares of the company's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 32,839 shares of company stock worth $10,644,740. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp increased its position in Lam Research by 2.6% in the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company's stock valued at $26,320,468,000 after acquiring an additional 1,545,830 shares in the last quarter. Bank of America Corp DE increased its stake in shares of Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company's stock valued at $4,872,426,000 after acquiring an additional 584,489 shares during the last quarter. Van ECK Associates Corp raised its holdings in Lam Research by 411.8% during the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock worth $4,805,368,000 after buying an additional 8,922,854 shares during the period. Invesco Ltd. grew its stake in shares of Lam Research by 7.7% during the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Lam Research in the 2nd quarter valued at approximately $3,777,585,000. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company's portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.

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