Lam Research Corporation $LRCX Shares Sold by Sterling Capital Management LLC

Key Points

• Sterling Capital Management reduced its Lam Research stake by 10.4% in the third quarter, selling 5,528 shares and retaining 47,637 shares valued at approximately $15.6 million. Institutional investors collectively own 84.61% of the company.
• Lam Research exceeded quarterly expectations, reporting $2.20 in EPS and $8.22 billion in revenue, with sales up 54.4% year over year. The company also raised its quarterly dividend to $0.33 per share.
• Analysts remain broadly optimistic, with 26 Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $354.55, although supply bottlenecks, declining China revenue and sector-wide valuation pressure remain risks.

Sterling Capital Management LLC decreased its stake in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 10.4% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 47,637 shares of the semiconductor company's stock after selling 5,528 shares during the quarter. Sterling Capital Management LLC's holdings in Lam Research were worth $15,649,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Cedar Mountain Advisors LLC lifted its holdings in Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 85 shares in the last quarter. Paladin Partners LLC purchased a new stake in shares of Lam Research in the second quarter worth $26,000. Quintet Private Bank Europe S.A. raised its position in shares of Lam Research by 100.0% during the 3rd quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 50 shares during the period. Dakota Community Bank & Trust NA bought a new stake in shares of Lam Research during the 3rd quarter valued at $33,000. Finally, Pin Oak Investment Advisors Inc. purchased a new position in shares of Lam Research during the 2nd quarter valued at $35,000. Institutional investors own 84.61% of the company's stock.

Insider Buying and Selling

In other news, insider Ava Harter sold 5,000 shares of the company'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 transaction of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company's stock, valued at $12,843,056.52. This represents a 10.53% decrease in their position. The sale was disclosed in a legal filing 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, Director Bethany Mayer sold 9,557 shares of the company's stock in a transaction that occurred on 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 sale, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.31% of the stock is currently owned by corporate insiders.

Lam Research Price Performance

NASDAQ LRCX traded down $0.05 on Friday, reaching $230.10. The company had a trading volume of 12,190,366 shares, compared to its average volume of 9,494,070. The stock has a market capitalization of $287.95 billion, a PE ratio of 34.29, a price-to-earnings-growth ratio of 0.83 and a beta of 1.85. Lam Research Corporation has a 12 month low of $135.50 and a 12 month high of $438.50. The company has a quick ratio of 1.91, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. The firm's 50 day moving average price is $301.90 and its 200 day moving average price is $309.32.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate 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 net margin of 32.34% and a return on equity of 72.15%. The business's revenue was up 54.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.26 EPS. As a group, equities analysts predict 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. Investors of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This is a boost from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. Lam Research's dividend payout ratio is currently 22.92%.

Trending Headlines about Lam Research

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 Analyst Weigh In

LRCX has been the subject of a number of analyst reports. Stifel Nicolaus increased their price target on Lam Research from $325.00 to $425.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. TD Cowen restated a "buy" rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Bank of America reaffirmed a "buy" rating and issued a $345.00 price objective on shares of Lam Research in a research note on Thursday. UBS Group reiterated a "buy" rating and set a $400.00 target price (down from $425.00) on shares of Lam Research in a research report on Thursday. Finally, Evercore set a $315.00 price target on Lam Research in a report on Tuesday. Twenty-six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $354.55.

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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