Analysts Issue Forecasts for Lam Research FY2027 Earnings

Key Points

• Erste Group Bank raised Lam Research’s FY2027 EPS estimate to $9.40 from $9.34 and projected FY2028 EPS of $11.99. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $364.59.
• Lam Research reported quarterly EPS of $1.82, beating the $1.69 consensus, while revenue rose 30% year over year to $6.72 billion. The company also raised its quarterly dividend to $0.33 per share from $0.26.
• The stock opened at $309.56 and carries a market capitalization of about $387.4 billion; institutional investors own 84.61% of shares, while two company insiders recently sold stock under disclosed transactions.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Equities research analysts at Erste Group Bank increased their FY2027 earnings per share estimates for shares of Lam Research in a report released on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the semiconductor company will earn $9.40 per share for the year, up from their prior estimate of $9.34. The consensus estimate for Lam Research's current full-year earnings is $9.34 per share. Erste Group Bank also issued estimates for Lam Research's FY2028 earnings at $11.99 EPS.

LRCX has been the subject of a number of other research reports. Morgan Stanley restated an "overweight" rating and set a $385.00 price target (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. Mizuho dropped their price objective on shares of Lam Research from $370.00 to $365.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 25th. Jefferies Financial Group set a $335.00 price objective on shares of Lam Research and gave the company a "buy" rating in a research note on Thursday, July 30th. TD Cowen reiterated a "buy" rating and set a $400.00 price objective (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Finally, UBS Group decreased their target price on shares of Lam Research from $435.00 to $425.00 and set a "buy" rating for the company in a research report on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $364.59.

Lam Research Price Performance

Shares of LRCX opened at $309.56 on Tuesday. Lam Research has a 12-month low of $134.04 and a 12-month high of $438.50. The business's fifty day moving average is $311.28 and its 200 day moving average is $306.87. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The stock has a market cap of $387.39 billion, a P/E ratio of 53.74, a P/E/G ratio of 1.26 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. The firm had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The company's revenue for the quarter was up 30.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS.

Lam Research Increases Dividend

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

Insider Buying and Selling

In other news, insider Ava Harter sold 5,000 shares of the firm's stock in a transaction on 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 completion of the sale, the insider directly owned 42,462 shares of the company's stock, valued at $12,843,056.52. This trade represents a 10.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the firm's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the sale, the director owned 20,995 shares of the company's stock, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

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

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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