Erste Group Bank Forecasts Higher Earnings for Lam Research

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Lam Research to $5.68 from $5.66 and kept a Hold rating; it also sees FY2027 EPS at $7.99.
• Lam Research’s latest quarterly results beat expectations, with EPS of $1.47 versus $1.36 expected and revenue of $5.84 billion versus $5.70 billion estimated, while revenue rose 23.8% year over year.
• The stock has rallied sharply, opening at $410.91 with a 1-year high of $414.98, and analysts overall remain cautiously positive with a Moderate Buy consensus and average price target of $342.49.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Research analysts at Erste Group Bank upped their FY2026 earnings per share (EPS) estimates for shares of Lam Research in a note issued to investors on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now forecasts that the semiconductor company will post earnings per share of $5.68 for the year, up from their prior forecast of $5.66. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Lam Research's current full-year earnings is $5.68 per share. Erste Group Bank also issued estimates for Lam Research's FY2027 earnings at $7.99 EPS.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.Lam Research's quarterly revenue was up 23.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS.

A number of other equities research analysts have also issued reports on the stock. BNP Paribas Exane upped their target price on shares of Lam Research from $250.00 to $260.00 and gave the company a "neutral" rating in a research note on Thursday, April 23rd. Wall Street Zen lowered Lam Research from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Zacks Research downgraded Lam Research from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Stifel Nicolaus set a $500.00 target price on Lam Research in a research report on Monday. Finally, Weiss Ratings downgraded Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, May 14th. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Lam Research currently has an average rating of "Moderate Buy" and a consensus price target of $342.49.

Lam Research Price Performance

Shares of LRCX stock opened at $410.91 on Tuesday. The firm has a market cap of $513.87 billion, a P/E ratio of 77.53, a P/E/G ratio of 3.14 and a beta of 1.85. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. Lam Research has a 1-year low of $90.93 and a 1-year high of $414.98. The firm has a fifty day moving average of $316.90 and a two-hundred day moving average of $251.92.

Lam Research Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. Lam Research's payout ratio is currently 19.62%.

Insider Activity at Lam Research

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the sale, the senior vice president directly owned 66,129 shares in the company, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares of the company's stock, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 86,339 shares of company stock worth $27,680,267 in the last 90 days. 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 modified their holdings of the stock. GSG Advisors LLC boosted its stake in shares of Lam Research by 3.1% during the 1st quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company's stock valued at $296,000 after buying an additional 42 shares during the period. Valued Wealth Advisors LLC grew its holdings in shares of Lam Research by 7.9% during the 1st quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company's stock valued at $126,000 after acquiring an additional 43 shares in the last quarter. Greenup Street Wealth Management LLC increased its stake in shares of Lam Research by 1.8% in the first quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company's stock worth $520,000 after acquiring an additional 44 shares during the last quarter. Triumph Capital Management raised its holdings in shares of Lam Research by 22.5% during the fourth quarter. Triumph Capital Management now owns 245 shares of the semiconductor company's stock worth $42,000 after acquiring an additional 45 shares in the last quarter. Finally, Traphagen Investment Advisors LLC raised its holdings in shares of Lam Research by 2.4% during the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company's stock worth $336,000 after acquiring an additional 46 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors.

About Lam Research

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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