Lam Research Corporation $LRCX Holdings Decreased by Cibc World Market Inc.

Key Points

• Cibc World Market Inc. reduced its Lam Research stake by 32.5% in the fourth quarter, selling 119,387 shares and ending with 247,467 shares worth about $42.4 million.
• Lam Research reported strong quarterly results, with earnings per share of $1.47 beating estimates and revenue of $5.84 billion topping expectations, while revenue rose 23.8% year over year.
• Wall Street sentiment remains broadly positive: 27 analysts rate the stock a Buy and the consensus price target is $303.30, even as the shares have already rallied sharply and recently traded above that level.

Cibc World Market Inc. cut its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 32.5% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 247,467 shares of the semiconductor company's stock after selling 119,387 shares during the quarter. Cibc World Market Inc.'s holdings in Lam Research were worth $42,361,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the business. PMV Capital Advisers LLC bought a new stake in shares of Lam Research during the 4th quarter valued at about $25,000. Core Wealth Advisors LLC bought a new position in Lam Research in the fourth quarter worth about $29,000. Stance Capital LLC bought a new position in Lam Research in the third quarter worth about $26,000. Triumph Capital Management acquired a new position in Lam Research in the third quarter valued at approximately $27,000. Finally, Harbor Investment Advisory LLC grew its holdings in shares of Lam Research by 73.9% during the fourth quarter. Harbor Investment Advisory LLC now owns 240 shares of the semiconductor company's stock valued at $41,000 after purchasing an additional 102 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on LRCX shares. B. Riley Financial increased their price target on Lam Research from $350.00 to $375.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Erste Group Bank lowered Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Susquehanna increased their target price on Lam Research from $350.00 to $385.00 and gave the stock a "positive" rating in a research report on Thursday, April 23rd. JPMorgan Chase & Co. raised their target price on Lam Research from $300.00 to $315.00 and gave the company an "overweight" rating in a research note on Thursday, April 23rd. Finally, Zacks Research downgraded shares of Lam Research from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Twenty-seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $303.30.

Lam Research Price Performance

Shares of NASDAQ:LRCX opened at $336.41 on Friday. The stock has a market cap of $420.70 billion, a price-to-earnings ratio of 63.47, a PEG ratio of 2.85 and a beta of 1.85. 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 12 month low of $84.34 and a 12 month high of $346.19. The stock's 50 day moving average price is $271.83 and its 200 day moving average price is $226.18.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating 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 last year, the firm earned $1.04 EPS. 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. Equities research analysts anticipate that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Announces Dividend

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

Lam Research News Roundup

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

• Positive Sentiment: Analyst and media coverage remains upbeat on Lam Research’s long-term outlook, with recent notes highlighting strong hedge fund/Wall Street support and meaningful upside potential as wafer fab equipment demand improves. What Do Analysts Say About Lam Research (LRCX)’s Earnings Outlook?
• Positive Sentiment: Recent coverage also points to strong cash flow supporting buybacks, with roughly $4.3 billion still authorized for repurchases, which can help support per-share earnings and investor sentiment. Will Strong Cash Flows Support Lam Research's Buyback Strategy Ahead?
• Positive Sentiment: The company’s recent earnings beat and strong revenue growth continue to reinforce the bull case, especially with AI-related semiconductor spending still supporting demand for chip equipment. Lam Research stock information
• Neutral Sentiment: An insider sale by SVP Neil J. Fernandes was disclosed, but it was executed under a pre-arranged 10b5-1 plan, so it is less likely to be viewed as a negative signal by investors. Lam Research insider trade filing
• Neutral Sentiment: Some commentary suggests the stock has already rallied strongly and is priced for a lot of optimism, which may be leading to a pause as traders await the next earnings catalyst. Why Lam Research Still Looks Like a Buy After a 300% Rally
• Negative Sentiment: The stock is slipping despite a generally favorable sector backdrop, suggesting some short-term profit-taking after recent outperformance in semiconductor names. Lam Research (LRCX) Stock Slides as Market Rises: Facts to Know Before You Trade

Insider Activity

In related news, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the sale, the senior vice president directly owned 58,470 shares of the company's stock, valued at $18,102,312. This represents a 11.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the firm's stock in a transaction that occurred on 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 sale, the insider owned 53,205 shares of the company's stock, valued at $13,762,005.30. The trade was a 10.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 31,839 shares of company stock worth $8,561,667. 0.31% of the stock is owned by company insiders.

Lam Research Company 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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