Lam Research Corporation $LRCX Shares Sold by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates reduced its Lam Research stake by 1.7%, selling 4,280 shares and retaining 251,376 shares valued at approximately $82.6 million. Institutional investors and hedge funds collectively own 84.61% of LRCX.
• Lam Research reported strong recent results, with revenue rising 30% year over year to $6.72 billion and EPS beating estimates. Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $365.07.
• Despite strong AI-related demand prospects, shares face elevated expectations after a major rally, a premium valuation, and concerns about future semiconductor capital spending. Evercore recently lowered its price target, while insider transactions have reflected selling without purchases.

Pinnacle Associates Ltd. cut its holdings in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 1.7% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 251,376 shares of the semiconductor company's stock after selling 4,280 shares during the period. Lam Research comprises about 0.9% of Pinnacle Associates Ltd.'s holdings, making the stock its 23rd largest position. Pinnacle Associates Ltd.'s holdings in Lam Research were worth $82,580,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in LRCX. Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research in the 1st quarter valued at about $26,000. Cedar Mountain Advisors LLC raised its position in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 85 shares in the last quarter. Paladin Partners LLC purchased a new stake in Lam Research during the second quarter worth approximately $26,000. Quintet Private Bank Europe S.A. lifted its stake in Lam Research by 100.0% during the third quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 50 shares during the last quarter. Finally, Dakota Community Bank & Trust NA purchased a new stake in Lam Research during the third quarter worth approximately $33,000. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research News Roundup

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

• Positive Sentiment: Analysts at Zacks said Lam Research has a strong history of earnings surprises and currently has the key indicators that could support another quarterly beat. The company previously reported record quarterly revenue of $6.72 billion, up 30% year over year, and guided to approximately $8.10 billion in revenue and $2.15 in non-GAAP EPS for the September quarter. Why Lam Research Is Poised to Beat Earnings Estimates Again
• Positive Sentiment: Longer-term demand remains tied to artificial-intelligence infrastructure, advanced memory, 5G and automotive chips. Lam’s customer-support and service revenue also provides some recurring business and may help moderate semiconductor-cycle volatility. The Bull Case for Lam Research
• Neutral Sentiment: Expectations are elevated after a roughly 53% year-to-date rally and strong prior results. Investors will focus on whether revenue growth, earnings and management’s outlook justify the stock’s premium valuation. Lam Research Nears Earnings After a 53% Year-to-Date Rally
• Negative Sentiment: Evercore lowered its price target before earnings, adding pressure to the shares and signaling that near-term upside expectations may have become too demanding. Lam Research Shares Fall as Evercore Cuts Target
• Negative Sentiment: Investors are also concerned that semiconductor capital spending in 2027 may not keep pace with the optimism surrounding the AI buildout. Weakness across chip-equipment stocks suggests the move is partly sector-driven rather than caused by a new company-specific announcement. Lam Research Slips Ahead of Earnings
• Negative Sentiment: Reported insider activity shows sales without purchases over the past six months, which may reinforce caution, although such transactions can reflect scheduled diversification rather than a direct view on the company’s prospects.

Insider Buying and Selling

In other Lam Research news, insider Ava Harter sold 5,000 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares of the company's stock, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.31% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on LRCX. Evercore set a $315.00 price target on Lam Research in a report on Tuesday. Mizuho cut their price objective on shares of Lam Research from $370.00 to $365.00 and set an "outperform" rating on the stock in a report on Tuesday, August 25th. Jefferies Financial Group set a $335.00 price objective on shares of Lam Research and gave the stock a "buy" rating in a report on Thursday, July 30th. Weiss Ratings downgraded shares of Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, September 4th. Finally, Fundamental Research set a $390.00 target price on shares of Lam Research in a report on Thursday, October 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $365.07.

Lam Research Stock Down 3.2%

LRCX opened at $263.45 on Wednesday. Lam Research Corporation has a one year low of $135.50 and a one year high of $438.50. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The stock has a market capitalization of $329.69 billion, a P/E ratio of 45.74, a price-to-earnings-growth ratio of 1.08 and a beta of 1.85. The business's 50-day simple moving average is $307.38 and its 200-day simple moving average is $309.50.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. The firm had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The business's revenue was up 30.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Analysts anticipate that Lam Research Corporation will post 9.35 EPS for the current year.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were paid a $0.33 dividend. 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 yield of 0.5%. The ex-dividend date was Wednesday, September 23rd. Lam Research's dividend payout ratio (DPR) is presently 22.92%.

About Lam Research

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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