Erste Group Bank Lifts Earnings Estimates for Lam Research

Key Points

• Erste Group Bank slightly raised its FY2027 earnings estimate for Lam Research to $7.89 per share from $7.88, while keeping a Hold rating on the stock.
• Lam Research has drawn generally bullish analyst attention, with several firms lifting price targets recently; the stock currently carries a Moderate Buy consensus and an average price target of $322.01.
• The company reported strong recent results, beating quarterly EPS and revenue estimates, and it also announced a quarterly dividend of $0.26 per share payable on July 8.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Research analysts at Erste Group Bank lifted their FY2027 earnings estimates for shares of Lam Research in a note issued to investors on Friday, June 5th. Erste Group Bank analyst S. Lingnau now forecasts that the semiconductor company will post earnings of $7.89 per share for the year, up from their prior estimate of $7.88. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Lam Research's current full-year earnings is $5.67 per share.

A number of other analysts have also commented on the stock. Bank of America lifted their target price on shares of Lam Research from $285.00 to $330.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Weiss Ratings lowered shares of Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, May 14th. Seaport Research Partners started coverage on shares of Lam Research in a research report on Monday, May 4th. They set a "buy" rating and a $300.00 price target on the stock. Berenberg Bank lifted their price target on shares of Lam Research from $265.00 to $335.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Finally, UBS Group reissued a "buy" rating and set a $375.00 price target (up from $310.00) on shares of Lam Research in a research report on Tuesday. Twenty-seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $322.01.

Lam Research Price Performance

LRCX opened at $321.80 on Thursday. The company has a fifty day moving average price of $280.23 and a two-hundred day moving average price of $231.09. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. Lam Research has a 52 week low of $87.75 and a 52 week high of $349.09. The firm has a market capitalization of $402.43 billion, a PE ratio of 60.72, a P/E/G ratio of 2.71 and a beta of 1.85.

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

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently added to or reduced their stakes in LRCX. Fideuram Asset Management Ireland dac bought a new stake in Lam Research during the 4th quarter worth about $10,035,000. Generali Investments Management Co LLC increased its stake in shares of Lam Research by 62.0% during the 4th quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company's stock worth $6,209,000 after purchasing an additional 13,878 shares during the last quarter. Thoroughbred Financial Services LLC increased its stake in shares of Lam Research by 115.2% during the 3rd quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company's stock worth $2,972,000 after purchasing an additional 11,883 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Lam Research by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company's stock worth $17,537,447,000 after purchasing an additional 364,949 shares during the last quarter. Finally, Hillsdale Investment Management Inc. acquired a new position in shares of Lam Research during the 3rd quarter worth about $1,229,000. 84.61% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, insider Ava Harter sold 6,010 shares of the business's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the sale, the insider directly owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Neil J. Fernandes sold 18,170 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the completion of the sale, the senior vice president directly owned 66,129 shares in the company, valued at $16,872,153.06. This represents a 21.55% 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. Over the last three months, insiders have sold 31,839 shares of company stock worth $8,561,667. Insiders own 0.31% of the company's stock.

Lam Research Dividend Announcement

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

Trending Headlines about Lam Research

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

• Positive Sentiment: Barclays raised its price target on Lam Research (LRCX) to $335 from $275, citing higher wafer fabrication equipment estimates and reinforcing a constructive outlook for chip tools demand. MarketScreener
• Positive Sentiment: Another report said semiconductor equipment stocks, including Lam Research, were trading near record highs as investors continued to bet on strong AI-driven demand for new chip gear. Applied Materials, Other Chip Gear Stocks At Record Highs
• Positive Sentiment: UBS previously lifted its price target on LRCX to $375 from $310, helping fuel the recent rally in the stock. Why Lam Research (LRCX) Stock Is Trading Up Today
• Neutral Sentiment: Lam Research was also mentioned in a broader “unstoppable growth stocks” screen and in investor commentary highlighting its strategic role in the semiconductor industry, but these items did not include new company-specific fundamentals.
• Negative Sentiment: Despite the positive analyst action, Lam Research recently slipped as the semiconductor sector came under pressure, with a broader “correction underway” narrative weighing on chip stocks. Lam Research (LRCX) Falls More Steeply Than Broader Market: What Investors Need to Know

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.