Lam Research Corporation $LRCX Shares Bought by Chapin Davis Inc.

Key Points

• Chapin Davis Inc. increased its Lam Research stake by 9.2% in the second quarter, purchasing 3,642 additional shares for a total of 43,099 shares valued at approximately $18.7 million. Institutional investors collectively own 84.61% of LRCX.
• Lam Research reported quarterly revenue of $6.72 billion and adjusted EPS of $1.82, beating expectations, while issuing stronger-than-anticipated guidance. AI-related chip demand, memory spending and advanced semiconductor manufacturing remain key growth catalysts.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $358.47, but premium valuation and recent insider selling could temper investor enthusiasm.

Chapin Davis Inc. grew its stake in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 9.2% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 43,099 shares of the semiconductor company's stock after purchasing an additional 3,642 shares during the quarter. Lam Research makes up 3.3% of Chapin Davis Inc.'s holdings, making the stock its 6th biggest position. Chapin Davis Inc.'s holdings in Lam Research were worth $18,676,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Foster Group Inc. raised its position in shares of Lam Research by 3.5% during the 2nd quarter. Foster Group Inc. now owns 2,639 shares of the semiconductor company's stock worth $1,144,000 after purchasing an additional 89 shares during the last quarter. David J Yvars Group purchased a new position in Lam Research in the 2nd quarter valued at about $906,000. Balefire LLC boosted its holdings in Lam Research by 14.4% in the 2nd quarter. Balefire LLC now owns 1,993 shares of the semiconductor company's stock worth $864,000 after buying an additional 251 shares during the last quarter. Baron Wealth Management LLC acquired a new stake in Lam Research in the 2nd quarter worth about $260,000. Finally, GAMMA Investing LLC increased its stake in Lam Research by 11.4% during the 2nd quarter. GAMMA Investing LLC now owns 39,912 shares of the semiconductor company's stock worth $17,295,000 after buying an additional 4,075 shares in the last quarter. Hedge funds and other institutional investors own 84.61% of the company's stock.

Lam Research News Roundup

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

• Positive Sentiment: Strong earnings and upbeat guidance support the long-term outlook. Lam reported quarterly revenue of $6.72 billion and adjusted EPS of $1.82, exceeding expectations. Management’s outlook for the next quarter—approximately $8.10 billion in revenue, 52% gross margin and 39.5% operating margin—also came in well ahead of consensus, reinforcing expectations for continued semiconductor-equipment demand. Lam Research's Latest Earnings Report Says the AI Chip Supercycle Isn't Over
• Positive Sentiment: AI, memory and advanced-manufacturing spending remain important catalysts. Commentary points to an ongoing AI chip “supercycle,” higher customer capital expenditures and potential upside for wafer-fabrication equipment spending. Industry optimism from Taiwan Semiconductor and Intel, along with strong memory demand, provides a favorable backdrop for LRCX. BofA's Cloud Forecast Puts Chip Stocks in Focus
• Positive Sentiment: Analyst targets and quantitative screens remain favorable. LRCX has appeared on growth-at-a-reasonable-price and efficiency screens, while recent analyst targets have generally exceeded the current market level, with a reported median target of $375. GARP Stocks Investors Can Consider
• Neutral Sentiment: Analysts are divided on the shares. Some view Lam as one of the strongest semiconductor-equipment operators with substantial long-term upside, while others believe the recent rebound already reflects much of the earnings improvement.
• Negative Sentiment: Valuation and insider selling are limiting enthusiasm. LRCX trades at a premium earnings multiple, and commentary describes the valuation as near the upper end of its historical range. In addition, reported insider activity shows sales without purchases during the past six months, which may add to investor caution. Lam Research Soars After Earnings

Analyst Upgrades and Downgrades

Several brokerages recently commented on LRCX. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $320.00 price target on shares of Lam Research in a research report on Thursday, July 30th. Evercore reaffirmed an "outperform" rating and set a $355.00 target price on shares of Lam Research in a research note on Monday, July 20th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Zacks Research upgraded shares of Lam Research from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $358.47.

Insiders Place Their Bets

In other news, SVP Neil J. Fernandes sold 7,659 shares of the company's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the transaction, the senior vice president owned 58,470 shares of the company's stock, valued at $18,102,312. This represents a 11.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the stock in a transaction on 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 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 80,441 shares of company stock valued at $27,614,296 over the last quarter. 0.31% of the stock is owned by insiders.

Lam Research Trading Down 3.2%

Shares of LRCX stock opened at $307.42 on Thursday. 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 twelve month low of $94.11 and a twelve month high of $438.50. The company's 50-day moving average price is $340.27 and its 200-day moving average price is $278.83. The stock has a market cap of $384.45 billion, a price-to-earnings ratio of 53.37, a PEG ratio of 1.27 and a beta of 1.84.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The business's revenue was up 30.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities analysts predict that Lam Research Corporation will post 9.24 earnings per share for the current year.

Lam Research Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research's dividend 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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