Generate Investment Management Ltd Sells 35,629 Shares of Lam Research Corporation $LRCX

Key Points

• Generate Investment Management Ltd cut its Lam Research stake by 38.8% in the third quarter, selling 35,629 shares and retaining 56,287 shares valued at approximately $18.5 million.
• Institutional investors own 84.61% of Lam Research, while recent insider transactions involved sales totaling more than $4.5 million; insiders own just 0.31% of the company.
• Lam Research shares fell to $287.23 amid semiconductor-sector profit-taking, despite a consensus “Moderate Buy” rating, a $364.59 price target, strong recent earnings growth and a dividend increase to $0.33 per quarter.

Generate Investment Management Ltd reduced its holdings in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 38.8% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 56,287 shares of the semiconductor company's stock after selling 35,629 shares during the quarter. Lam Research comprises 0.7% of Generate Investment Management Ltd's portfolio, making the stock its 29th biggest holding. Generate Investment Management Ltd's holdings in Lam Research were worth $18,491,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in LRCX. World Equity Group Inc. grew its position in Lam Research by 0.5% in the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company's stock worth $2,416,000 after purchasing an additional 29 shares during the last quarter. Vann Equity Management LLC raised its position in shares of Lam Research by 1.1% during the third quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company's stock valued at $944,000 after buying an additional 31 shares during the last quarter. Tenzing Financial LLC raised its position in shares of Lam Research by 3.5% during the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company's stock valued at $441,000 after buying an additional 34 shares during the last quarter. Advus Financial Partners LLC raised its position in shares of Lam Research by 1.0% during the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company's stock valued at $1,550,000 after buying an additional 34 shares during the last quarter. Finally, Paragon Private Wealth Management LLC lifted its stake in shares of Lam Research by 1.3% in the second quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company's stock valued at $1,178,000 after buying an additional 35 shares during the period. 84.61% of the stock is currently owned by institutional investors.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Analysts see upside potential: The consensus price target implies approximately 25.6% potential appreciation. Zacks notes that rising earnings-estimate revisions could support the stock, although price targets alone have limited predictive value. Wall Street Analysts See a 25.6% Upside in Lam Research
• Positive Sentiment: Favorable earnings outlook: Erste Group Bank raised its FY2027 EPS estimate to $9.40 from $9.34 and its FY2028 forecast to $11.99 from $11.68. UBS also expects Lam Research to deliver strong results and guidance, and recent analysis describes a solid FY2027 setup ahead of the report. UBS Expects Strong Results and Guidance
• Neutral Sentiment: Earnings are the immediate catalyst: Lam Research is scheduled to report earnings Wednesday. Investors will focus on demand for wafer-fabrication equipment, AI-related semiconductor spending and forward guidance. The company’s latest quarter showed record revenue, operating margin and EPS, with guidance for another strong quarter. Lam Research Set to Post Earnings
• Negative Sentiment: Sector-wide profit-taking pressured the stock: Semiconductor-equipment shares, including Lam Research, fell as investors reduced exposure after a strong AI-driven run and reassessed elevated valuations ahead of key industry earnings. The stock also declined for seven consecutive sessions. Semiconductor Equipment Stocks Slide as Investors Take Profits
• Negative Sentiment: Insider selling is a secondary concern: Reported insider activity over the past six months showed sales without purchases, including transactions by executives. This may weigh on sentiment, although the broader sector selloff appears to be the primary near-term driver.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 9,557 shares of the firm's 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 transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company's stock, valued at approximately $12,843,056.52. This trade represents a 10.53% 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.

Analysts Set New Price Targets

LRCX has been the topic of several research reports. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. Susquehanna reiterated a "positive" rating and issued a $475.00 price objective (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. Morgan Stanley reiterated an "overweight" rating and issued a $385.00 price objective (up from $367.00) on shares of Lam Research in a research report on Monday, October 5th. Citigroup reissued a "buy" rating and set a $450.00 price objective (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $350.00 price objective (down from $450.00) on shares of Lam Research in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Lam Research has an average rating of "Moderate Buy" and a consensus target price of $364.59.

Lam Research Price Performance

Shares of Lam Research stock traded down $13.88 during trading on Wednesday, reaching $287.23. The company's stock had a trading volume of 3,738,090 shares, compared to its average volume of 10,623,412. The stock has a 50-day moving average price of $310.95 and a two-hundred day moving average price of $307.35. The stock has a market capitalization of $359.45 billion, a P/E ratio of 49.94, a price-to-earnings-growth ratio of 1.23 and a beta of 1.85. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. Lam Research Corporation has a one year low of $135.50 and a one year high of $438.50.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share 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 firm had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $6.66 billion. During the same quarter last year, the company posted $1.33 EPS. The company's quarterly 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. As a group, sell-side analysts anticipate that Lam Research Corporation will post 9.34 EPS for the current fiscal year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be issued a $0.33 dividend. This is an increase from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a yield of 0.5%. The ex-dividend date is Wednesday, September 23rd. Lam Research's dividend payout ratio (DPR) is currently 22.92%.

Lam Research Profile

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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