Hennessy Advisors Inc. Acquires New Stake in Lam Research Corporation $LRCX

Key Points

• Hennessy Advisors acquired 9,424 Lam Research shares during the second quarter, valued at approximately $4.1 million. Institutional investors and hedge funds collectively own 84.61% of LRCX.
• Lam Research reported quarterly earnings of $1.82 per share, beating estimates by $0.13, while revenue rose 30% year over year to $6.72 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $358.47.
• The stock’s growth outlook is supported by strong AI and semiconductor equipment demand, though its elevated valuation and planned R&D expansion introduce execution and investment risks.

Hennessy Advisors Inc. acquired a new stake in Lam Research Corporation (NASDAQ:LRCX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 9,424 shares of the semiconductor company's stock, valued at approximately $4,084,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Lam Research during the fourth quarter worth about $3,645,427,000. Price T Rowe Associates Inc. MD grew its holdings in shares of Lam Research by 352.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock worth $2,344,347,000 after acquiring an additional 10,666,540 shares during the period. Franklin Resources Inc. increased its stake in Lam Research by 57.0% in the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company's stock valued at $1,730,724,000 after purchasing an additional 3,671,073 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Lam Research by 235.5% during the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock worth $890,040,000 after purchasing an additional 3,649,553 shares during the last quarter. Finally, J. Stern & Co. LLP boosted its position in Lam Research by 3,826.9% during the fourth quarter. J. Stern & Co. LLP now owns 3,459,377 shares of the semiconductor company's stock worth $592,176,000 after purchasing an additional 3,371,283 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Lam Research Stock Performance

NASDAQ:LRCX opened at $332.36 on Monday. The firm has a 50-day moving average of $339.46 and a two-hundred day moving average of $283.57. 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 stock has a market cap of $415.89 billion, a P/E ratio of 57.70, a PEG ratio of 1.32 and a beta of 1.84. Lam Research Corporation 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 for the quarter, topping the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm's revenue for the quarter was up 30.0% compared to the same quarter last year. During the same period last year, the business earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, research analysts expect that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.3%. Lam Research's payout ratio is presently 18.06%.

Wall Street Analysts Forecast Growth

LRCX has been the subject of several recent research reports. Berenberg Bank raised their target price on shares of Lam Research from $265.00 to $335.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Rothschild & Co Redburn increased their target price on Lam Research from $305.00 to $420.00 and gave the company a "buy" rating in a report on Wednesday, June 17th. The Goldman Sachs Group reissued a "buy" rating and issued a $290.00 price target on shares of Lam Research in a report on Thursday, April 23rd. TD Cowen reissued a "buy" rating and issued a $400.00 target price (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $358.47.

Lam Research News Roundup

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

• Positive Sentiment: Lam Research plans to increase R&D experiment capacity by more than 50% across facilities in the United States, Asia and Europe. Management says the investment should accelerate product development and help customers address increasingly complex AI-chip architectures, materials and nanoscale manufacturing requirements. Reuters article
• Positive Sentiment: Investors are viewing Lam’s expertise in etching, including next-generation atomic-layer etching, as a potentially valuable competitive advantage as AI-driven semiconductor production requires greater manufacturing precision. The company’s recent rebound has renewed optimism that its technology could benefit from a longer-term equipment upcycle. 247WallSt article
• Positive Sentiment: SanDisk’s bullish multiyear financial targets have strengthened expectations for memory-industry capital spending through 2030, supporting demand prospects for semiconductor equipment suppliers such as Lam Research. SanDisk financial targets article
• Neutral Sentiment: Polen Capital identified LRCX as a top performer in its Focus Growth portfolio, while Zacks continues to highlight the stock’s long-term earnings outlook. These endorsements may support sentiment but do not represent new company guidance or guaranteed returns. Polen Capital article
• Negative Sentiment: The R&D expansion requires substantial spending over several years, creating execution and return-on-investment risks. Lam also trades at a relatively elevated valuation after a sharp recovery, leaving the stock vulnerable to profit-taking and concerns that the semiconductor cycle may be approaching a peak.

Insiders Place Their Bets

In other news, Director Abhijit Y. Talwalkar sold 18,282 shares of the company's stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares of the company's stock, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. The trade was a 21.48% 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. In the last quarter, insiders sold 80,441 shares of company stock worth $27,614,296. 0.31% of the stock is owned by company insiders.

Lam Research 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.

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