Lam Research Corporation $LRCX Shares Sold by Carderock Capital Management Inc.

Key Points

• Carderock Capital reduced its Lam Research position by 13.8% in the third quarter, selling 10,158 shares and retaining 63,639 shares worth approximately $20.9 million. Despite the reduction, LRCX remains the firm’s largest holding, while institutional investors collectively own 84.61% of the stock.
• Lam Research reported quarterly revenue of $8.22 billion and EPS of $2.20, modestly exceeding analyst expectations, with revenue up 54.4% year over year. The company also increased its quarterly dividend to $0.33, equal to a 0.6% annualized yield.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $354.55, supported by expected AI- and memory-driven semiconductor equipment demand. However, supply bottlenecks, declining China revenue and sector-wide valuation pressure remain key risks.

Carderock Capital Management Inc. lowered its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 13.8% in the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 63,639 shares of the semiconductor company's stock after selling 10,158 shares during the quarter. Lam Research comprises 5.1% of Carderock Capital Management Inc.'s holdings, making the stock its biggest position. Carderock Capital Management Inc.'s holdings in Lam Research were worth $20,906,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. State Street Corp increased its stake in shares of Lam Research by 2.6% in the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company's stock valued at $26,320,468,000 after purchasing an additional 1,545,830 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company's stock valued at $4,872,426,000 after acquiring an additional 584,489 shares during the last quarter. Van ECK Associates Corp boosted its holdings in shares of Lam Research by 411.8% during the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock valued at $4,805,368,000 after acquiring an additional 8,922,854 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Lam Research during the 2nd quarter worth $3,777,585,000. Finally, Amundi boosted its stake in shares of Lam Research by 23.7% during the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company's stock valued at $2,168,107,000 after purchasing an additional 1,942,862 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Lam Research Price Performance

Shares of NASDAQ:LRCX opened at $230.10 on Friday. Lam Research Corporation has a fifty-two week low of $135.50 and a fifty-two week high of $438.50. The company's 50-day moving average is $301.90 and its 200 day moving average is $309.32. The company has a market capitalization of $287.95 billion, a P/E ratio of 34.05, a price-to-earnings-growth ratio of 0.83 and a beta of 1.85. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.91 and a current ratio of 2.48.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.18 by $0.02. The business had revenue of $8.22 billion during the quarter, compared to the consensus estimate of $8.14 billion. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The business's revenue for the quarter was up 54.4% on a year-over-year basis. During the same period last year, the business posted $1.26 earnings per share. On average, equities research analysts forecast that Lam Research Corporation will post 9.48 earnings per share for the current year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were issued a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Wednesday, September 23rd. This is a positive change from Lam Research's previous quarterly dividend of $0.26. Lam Research's payout ratio is 22.92%.

Insider Buying and Selling at Lam Research

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of the company's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the firm's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the sale, the insider owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. 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. Corporate insiders own 0.31% of the company's stock.

Lam Research News Roundup

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on LRCX. UBS Group reissued a "buy" rating and issued a $400.00 price objective (down from $425.00) on shares of Lam Research in a research note on Thursday. Jefferies Financial Group set a $335.00 price objective on Lam Research and gave the stock a "buy" rating in a research report on Thursday, July 30th. Cantor Fitzgerald set a $500.00 target price on shares of Lam Research and gave the stock an "overweight" rating in a research note on Monday, June 29th. Morgan Stanley set a $339.00 price objective on Lam Research and gave the company an "overweight" rating in a research note on Thursday. Finally, Stifel Nicolaus raised their price objective on shares of Lam Research from $325.00 to $425.00 and gave the company a "buy" rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $354.55.

Lam Research Profile

Lam Research Corporation NASDAQ: LRCX is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company's product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.

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