20,697 Lam Research Corporation $LRCX Shares Sold by Harbor Island Capital LLC

Key Points

• Harbor Island Capital reduced its Lam Research stake by 13.9%, selling 20,697 shares in the third quarter and retaining 128,181 shares worth approximately $42.1 million. Institutional investors collectively own 84.61% of the company.
• Lam Research reported quarterly revenue of $8.22 billion and EPS of $2.20, beating analyst expectations, with revenue up 54.4% year over year. The company also increased its quarterly dividend to $0.33 per share.
• Analysts remain broadly positive, with 26 Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $354.55, although supply constraints, declining China exposure and sector volatility remain risks.

Harbor Island Capital LLC lessened its stake in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 13.9% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 128,181 shares of the semiconductor company's stock after selling 20,697 shares during the period. Lam Research accounts for approximately 10.7% of Harbor Island Capital LLC's portfolio, making the stock its 2nd biggest position. Harbor Island Capital LLC's holdings in Lam Research were worth $42,109,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. State Street Corp raised its stake in Lam Research by 2.6% during the second quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company's stock worth $26,320,468,000 after purchasing an additional 1,545,830 shares during the period. Bank of America Corp DE grew its stake in shares of 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 valued at $4,872,426,000 after buying an additional 584,489 shares during the period. Van ECK Associates Corp increased its holdings in shares of Lam Research by 411.8% during the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock worth $4,805,368,000 after buying an additional 8,922,854 shares during the last quarter. Amundi increased its holdings in shares of Lam Research by 23.7% during the 1st quarter. Amundi now owns 10,147,479 shares of the semiconductor company's stock worth $2,168,107,000 after buying an additional 1,942,862 shares during the last quarter. Finally, Janus Henderson Group PLC raised its position in shares of Lam Research by 2.0% during the 1st quarter. Janus Henderson Group PLC now owns 9,265,026 shares of the semiconductor company's stock valued at $1,975,244,000 after buying an additional 181,087 shares during the period. Institutional investors and hedge funds own 84.61% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on LRCX. Susquehanna reiterated a "positive" rating and issued a $475.00 price objective (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Mizuho cut their target price on Lam Research from $365.00 to $360.00 and set an "outperform" rating for the company in a research note on Thursday. Berenberg Bank set a $420.00 target price on Lam Research in a research report on Wednesday, September 9th. Wall Street Zen upgraded Lam Research from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Bank of America reaffirmed a "buy" rating and issued a $345.00 price target on shares of Lam Research in a research note on Thursday. Twenty-six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Lam Research currently has an average rating of "Moderate Buy" and an average target price of $354.55.

Lam Research Price Performance

Shares of LRCX opened at $230.10 on Friday. The firm has a 50-day simple moving average of $301.90 and a two-hundred day simple moving average of $309.32. The stock has a market cap of $287.95 billion, a PE ratio of 34.29, a P/E/G ratio of 0.83 and a beta of 1.85. Lam Research Corporation has a 1-year low of $135.50 and a 1-year high of $438.50. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.91.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.18 by $0.02. The firm had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The business's revenue for the quarter was up 54.4% compared to the same quarter last year. During the same period in the prior year, the business posted $1.26 EPS. As a group, analysts forecast that Lam Research Corporation will post 9.48 EPS for the current year.

Lam Research Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were given a $0.33 dividend. The ex-dividend date of this dividend was 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 yield of 0.6%. Lam Research's dividend payout ratio is presently 19.67%.

Lam Research News Summary

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

Insiders Place Their Bets

In other news, Director Bethany Mayer sold 9,557 shares of Lam Research stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares of the company's stock, valued at approximately $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the sale, the insider owned 42,462 shares in the company, valued at $12,843,056.52. This represents a 10.53% 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. 0.31% of the stock is owned by corporate insiders.

Lam Research Profile

Lam Research Corporation NASDAQ: LRCX is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company's product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.

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