Erste Group Bank Raises Earnings Estimates for Lam Research

Key Points

• Erste Group Bank raised Lam Research’s FY2027 EPS estimate to $9.34 from $9.27, slightly above the $9.33 consensus forecast.
• Lam Research beat its latest quarterly expectations, reporting $1.82 EPS versus $1.69 expected and $6.72 billion in revenue, up 30% year over year.
• Analysts maintain a broadly positive view, with the stock carrying a “Moderate Buy” consensus rating and a $357.31 average price target, although China-related trade risks and recent insider selling remain concerns.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Erste Group Bank lifted their FY2027 earnings per share estimates for Lam Research in a report released on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now expects that the semiconductor company will post earnings of $9.34 per share for the year, up from their previous estimate of $9.27. The consensus estimate for Lam Research's current full-year earnings is $9.33 per share.

LRCX has been the topic of a number of other research reports. Evercore reiterated an "outperform" rating and set a $355.00 price objective on shares of Lam Research in a research report on Monday, July 20th. Citigroup reaffirmed a "buy" rating and issued a $450.00 target price (up from $315.00) on shares of Lam Research in a research note on Wednesday, June 17th. Wall Street Zen lowered Lam Research from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Raymond James Financial set a $425.00 price target on shares of Lam Research in a research report on Wednesday, June 10th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $390.00 price objective on shares of Lam Research in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and a consensus price target of $357.31.

Lam Research Price Performance

LRCX stock opened at $301.90 on Monday. 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 business has a 50 day simple moving average of $330.43 and a 200-day simple moving average of $289.56. The firm has a market capitalization of $377.77 billion, a PE ratio of 52.41, a price-to-earnings-growth ratio of 1.20 and a beta of 1.84. Lam Research has a 1 year low of $94.11 and a 1 year high of $438.50.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $6.66 billion. During the same quarter in the prior year, the company earned $1.33 EPS. Lam Research's 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.

Lam Research Increases Dividend

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

Insider Transactions at Lam Research

In related news, Director Eric Brandt sold 54,500 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction 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 approximately $69,881,114. This trade represents a 21.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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 business's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the sale, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Bayban purchased a new position in shares of Lam Research in the fourth quarter valued at approximately $26,000. Vermillion Wealth Management Inc. purchased a new position in Lam Research in the 1st quarter valued at approximately $26,000. Cedar Mountain Advisors LLC boosted its position in Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after buying an additional 85 shares during the period. Paladin Partners LLC acquired a new position in shares of Lam Research in the second quarter worth $26,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of Lam Research in the fourth quarter worth $27,000. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam Research broke ground on a 120,000-square-foot Oregon semiconductor laboratory as part of a planned investment of more than $3 billion in its global lab network over five years. The project is intended to accelerate process innovations for advanced AI chips and improve collaboration with customers, supporting the company’s long-term growth prospects. Lam Research breaks ground on AI semiconductor lab in Oregon
• Positive Sentiment: The board approved a 27% increase in the quarterly dividend, from $0.26 to $0.33 per share. The payout is scheduled for October 14, 2026, for shareholders of record on September 23, providing a modest shareholder-return signal. Lam Research Corporation Announces a 27% Increase in Quarterly Dividend
• Neutral Sentiment: Lam’s latest earnings exceeded consensus expectations, with quarterly earnings per share of $1.82 versus the $1.69 estimate and revenue of $6.72 billion. Revenue increased 30% year over year, while management issued fiscal first-quarter 2027 EPS guidance of $2.00 to $2.30. Analysts’ median price target remains substantially above recent trading levels, although Mizuho recently lowered its target to $365.
• Neutral Sentiment: Two long-serving directors, Michael R. Cannon and Sohail U. Ahmed, plan to retire from the board on November 2, 2026. The transition could refresh governance but introduces some near-term uncertainty regarding board composition. Lam Research Announces Retirement of Michael R. Cannon and Sohail U. Ahmed from Board of Directors
• Negative Sentiment: Investors appear increasingly concerned about tariffs, export restrictions and other U.S.-China trade measures. China was Lam’s largest geographic market in fiscal 2026, making the company particularly sensitive to policy changes that could reduce demand, hurt margins or disrupt its supply chain. These macro concerns have overshadowed the dividend increase and Oregon expansion. Lam Research Slides as China Trade Risk Appears to Outweigh Dividend Hike
• Negative Sentiment: Reported insider activity shows selling rather than buying by executives and directors over the past six months, which may reinforce caution among investors, though such transactions can reflect personal financial planning rather than a view on company fundamentals.

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.

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.

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