Investment Management Corp of Ontario Raises Stock Position in Lam Research Corporation $LRCX

Key Points

• Investment Management Corp of Ontario increased its Lam Research stake by 71.3% in the fourth quarter, ending with 119,818 shares valued at about $20.5 million.
• Lam Research reported better-than-expected fiscal results, including EPS of $1.47 versus $1.36 expected and revenue of $5.84 billion versus $5.70 billion expected, with year-over-year revenue up 23.8%.
• Analysts remain increasingly bullish on the stock, with multiple firms raising price targets and Lam Research receiving a Moderate Buy consensus rating; recent targets range as high as $450.

Investment Management Corp of Ontario boosted its holdings in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 71.3% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 119,818 shares of the semiconductor company's stock after buying an additional 49,856 shares during the period. Investment Management Corp of Ontario's holdings in Lam Research were worth $20,510,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. PMV Capital Advisers LLC purchased a new stake in Lam Research during the 4th quarter valued at approximately $25,000. Stance Capital LLC purchased a new position in shares of Lam Research during the third quarter valued at about $26,000. Triumph Capital Management purchased a new position in shares of Lam Research during the third quarter valued at about $27,000. Strategic Wealth Investment Group LLC purchased a new position in shares of Lam Research during the second quarter valued at about $29,000. Finally, Core Wealth Advisors LLC purchased a new position in shares of Lam Research during the fourth quarter valued at about $29,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

Lam Research Trading Up 1.3%

Shares of NASDAQ LRCX opened at $374.18 on Thursday. The business's 50 day moving average is $295.60 and its two-hundred day moving average is $238.88. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. Lam Research Corporation has a 1-year low of $87.75 and a 1-year high of $397.63. The stock has a market capitalization of $467.94 billion, a P/E ratio of 70.60, a PEG ratio of 3.04 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company had revenue of $5.84 billion for the quarter, compared to analysts' expectations of $5.70 billion. During the same period in the previous year, the firm posted $1.04 earnings per share. The firm's revenue for the quarter was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, research analysts expect that Lam Research Corporation will post 5.7 EPS for the current year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. Lam Research's payout ratio is 19.62%.

Insider Activity

In other news, Director Eric Brandt sold 54,500 shares of the company's stock in a transaction that occurred on 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 transaction, the director owned 199,205 shares of the company's stock, valued at approximately $69,881,114. This represents a 21.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the company's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the completion of the transaction, the insider owned 53,205 shares in the company, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 86,339 shares of company stock valued at $27,680,267. 0.31% of the stock is currently owned by insiders.

Key Lam Research News

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

• Positive Sentiment: Rothschild & Co Redburn raised its price target on Lam Research to $420 from $305 and reiterated a buy rating, signaling confidence in further upside. MarketScreener article on Rothschild & Co Redburn target raise
• Positive Sentiment: Citi also boosted its Lam Research price target to $450 from $315, citing booming wafer fab equipment demand and stronger forecast assumptions for the semiconductor capital spending cycle. Yahoo/Investing.com article on Citi target hike
• Positive Sentiment: Analyst and market commentary continue to point to strong memory-equipment demand and AI-driven packaging growth as key growth catalysts for Lam Research. Motley Fool article on memory stock and Lam Research growth
• Positive Sentiment: Multiple articles describe Lam Research as a profitable, high-quality growth stock, which supports investor enthusiasm around its earnings power and premium valuation. Insider Monkey article on most profitable American stocks
• Neutral Sentiment: There was also insider selling by a director under a pre-arranged 10b5-1 plan, which is notable but not necessarily a negative signal. SEC filing for director share sale
• Neutral Sentiment: The broader chip-equipment group is rallying with Intel’s manufacturing update lifting sentiment across semiconductor stocks, adding sector tailwinds for LRCX. Yahoo/Investing.com article on chip stocks rebound

Analysts Set New Price Targets

A number of research analysts have recently weighed in on LRCX shares. Mizuho set a $380.00 price objective on Lam Research and gave the company an "outperform" rating in a research report on Wednesday, May 27th. Weiss Ratings cut Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, May 14th. Seaport Research Partners initiated coverage on Lam Research in a report on Monday, May 4th. They set a "buy" rating and a $300.00 price objective on the stock. Morgan Stanley upgraded shares of Lam Research from an "underweight" rating to an "overweight" rating and boosted their price target for the stock from $293.00 to $331.00 in a research report on Monday, May 18th. Finally, Cantor Fitzgerald set a $425.00 price target on shares of Lam Research and gave the stock an "overweight" rating in a research report on Wednesday, June 10th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $333.62.

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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