Lam Research Corporation $LRCX is Harbor Island Capital LLC's 2nd Largest Position

Key Points

• Harbor Island Capital reduced its Lam Research position by 6.8% in the second quarter, selling 10,907 shares, but still held 148,878 shares valued at $64.5 million. LRCX represents 17.2% of the firm’s portfolio and is its second-largest holding.
• Lam Research beat quarterly earnings and revenue expectations, reporting $1.82 in EPS and $6.72 billion in revenue, with revenue up 30% year over year. The company also raised its quarterly dividend from $0.26 to $0.33 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $358.97 price target, although UBS recently lowered its target to $425. Shares face risks from high valuation, China exposure, insider selling and rising interest rates.

Harbor Island Capital LLC cut its position in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 6.8% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 148,878 shares of the semiconductor company's stock after selling 10,907 shares during the quarter. Lam Research accounts for 17.2% of Harbor Island Capital LLC's holdings, making the stock its 2nd largest holding. Harbor Island Capital LLC's holdings in Lam Research were worth $64,513,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of LRCX. World Equity Group Inc. boosted its holdings in Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company's stock valued at $2,416,000 after acquiring an additional 29 shares during the period. Tenzing Financial LLC increased its stake in Lam Research by 3.5% during the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company's stock worth $441,000 after purchasing an additional 34 shares during the period. Gibraltar Capital Management Inc. lifted its position in shares of Lam Research by 3.6% during the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company's stock worth $455,000 after purchasing an additional 36 shares in the last quarter. Elevated Financial Group LLC lifted its position in shares of Lam Research by 3.0% during the second quarter. Elevated Financial Group LLC now owns 1,223 shares of the semiconductor company's stock worth $530,000 after purchasing an additional 36 shares in the last quarter. Finally, Yoder Wealth Management Inc. boosted its stake in shares of Lam Research by 3.3% in the second quarter. Yoder Wealth Management Inc. now owns 1,129 shares of the semiconductor company's stock valued at $489,000 after purchasing an additional 36 shares during the period. Hedge funds and other institutional investors own 84.61% of the company's stock.

More Lam Research News

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

• Positive Sentiment: UBS maintained a Buy rating and set a $425 price target, down from $435 but still implying substantial potential upside. The target reflects continued confidence in Lam’s semiconductor-equipment opportunity. UBS price-target article
• Positive Sentiment: Recent coverage highlights strong semiconductor demand, AI infrastructure investment and Lam’s earnings momentum. The company recently exceeded quarterly earnings and revenue expectations, while revenue increased year over year; it also raised its dividend by 27%. Dividend increase article
• Neutral Sentiment: Analysts and investor commentary remain divided: some view the recent pullback as a buying opportunity, while others caution that Lam’s valuation and exposure to China could limit near-term returns. Lam Research pullback analysis
• Negative Sentiment: A global bond selloff pushed long-term yields higher, pressuring high-multiple semiconductor stocks. Higher yields can raise corporate financing costs and reduce the present value investors assign to future growth. Semiconductor sector selloff article
• Negative Sentiment: An insider sold 5,000 shares worth approximately $1.5 million. The transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but it still adds to short-term selling pressure. SEC insider-sale filing
• Negative Sentiment: Crude oil’s surge and higher benchmark Treasury yields revived inflation concerns, reinforcing worries that interest rates may remain restrictive for longer and weighing on LRCX alongside other semiconductor stocks. Market selloff article

Analyst Ratings Changes

A number of research analysts recently weighed in on LRCX shares. UBS Group dropped their price objective on shares of Lam Research from $435.00 to $425.00 and set a "buy" rating for the company in a report on Tuesday. Weiss Ratings upgraded shares of Lam Research from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, August 21st. Stifel Nicolaus raised their price target on shares of Lam Research from $325.00 to $425.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Zacks Research upgraded shares of Lam Research from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 17th. Finally, Rothschild & Co Redburn upped their price objective on Lam Research from $305.00 to $420.00 and gave the stock a "buy" rating in a research report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Lam Research currently has an average rating of "Moderate Buy" and a consensus price target of $358.97.

Insider Activity at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the 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 transaction, the insider owned 42,462 shares of the company's stock, valued at $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm's stock in a transaction 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 owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their ownership of the stock. 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. Insiders have sold 77,782 shares of company stock valued at $26,755,370 over the last quarter. 0.31% of the stock is owned by insiders.

Lam Research Stock Down 3.7%

Shares of Lam Research stock opened at $290.20 on Wednesday. Lam Research Corporation has a 52-week low of $94.11 and a 52-week high of $438.50. The company has a 50 day moving average of $326.64 and a 200 day moving average of $290.48. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $363.13 billion, a P/E ratio of 50.38, a P/E/G ratio of 1.20 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. During the same period in the prior year, the firm 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, research analysts forecast that Lam Research Corporation will post 9.33 EPS for the current fiscal year.

Lam Research Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be paid a dividend of $0.33 per share. The ex-dividend date is Wednesday, September 23rd. This is an increase from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. Lam Research's payout ratio is presently 18.06%.

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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