Lam Research Corporation (NASDAQ:LRCX) Declares Dividend Increase - $0.33 Per Share

Key Points

• Lam Research raised its quarterly dividend 26.9% to $0.33 per share, payable October 14 to shareholders of record September 23. The annualized dividend implies a 0.4% yield, and the company has increased its dividend for 10 consecutive years.
• The semiconductor-equipment maker reported quarterly EPS of $1.82, exceeding estimates of $1.69, while revenue rose 30% year over year to $6.72 billion. Analysts expect continued earnings coverage for the dividend.
• Institutional investors and hedge funds own 84.61% of Lam Research, while insiders sold about $27.6 million of stock over the past 90 days under pre-arranged trading plans.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) declared a quarterly dividend on Thursday, August 27th. Shareholders of record on Wednesday, September 23rd will be given a dividend of 0.33 per share by the semiconductor company on Wednesday, October 14th. This represents a c) annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Wednesday, September 23rd. This is a 26.9% increase from Lam Research's previous quarterly dividend of $0.26.

Lam Research has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 10 years. Lam Research has a payout ratio of 25.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Lam Research to earn $11.35 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 9.2%.

Lam Research Trading Up 1.8%

NASDAQ:LRCX opened at $318.58 on Friday. The stock has a market cap of $398.65 billion, a PE ratio of 55.31, a price-to-earnings-growth ratio of 1.24 and a beta of 1.84. Lam Research has a fifty-two week low of $94.11 and a fifty-two week high of $438.50. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The stock's 50-day moving average is $332.17 and its two-hundred day moving average is $289.05.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted 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. The business had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm's revenue was up 30.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts forecast that Lam Research will post 9.32 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company's stock, valued at $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 80,441 shares of company stock valued at $27,614,296 over the last ninety days. Corporate insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds have recently bought and sold shares of the business. World Equity Group Inc. boosted its stake in shares of Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company's stock worth $2,416,000 after acquiring an additional 29 shares in the last quarter. Tenzing Financial LLC raised its stake in shares of Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company's stock valued at $441,000 after acquiring an additional 34 shares in the last quarter. Advus Financial Partners LLC raised its stake in shares of Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company's stock valued at $1,550,000 after acquiring an additional 34 shares in the last quarter. Paragon Private Wealth Management LLC lifted its holdings in Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company's stock worth $1,178,000 after purchasing an additional 35 shares during the last quarter. Finally, Gibraltar Capital Management Inc. lifted its holdings in Lam Research by 3.6% in the 2nd quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company's stock worth $455,000 after purchasing an additional 36 shares during the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Company Profile

Lam Research Corporation NASDAQ: LRCX is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam's product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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