Lam Research Corporation $LRCX Stake Boosted by Watershed Private Wealth LLC

Key Points

• Watershed Private Wealth increased its Lam Research stake by 231.1% in the third quarter, ending the period with 6,496 shares valued at about $2.13 million. Institutional investors and hedge funds collectively own 84.61% of the stock.
• Lam Research posted record quarterly revenue of $8.22 billion and EPS of $2.20, both slightly above analyst expectations. Its next-quarter outlook was broadly in line with forecasts, while component shortages and declining China-related revenue pose risks.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $360.23; recent target changes have been mixed.

Watershed Private Wealth LLC lifted its holdings in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 231.1% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,496 shares of the semiconductor company's stock after buying an additional 4,534 shares during the period. Watershed Private Wealth LLC's holdings in Lam Research were worth $2,134,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of LRCX. State Street Corp boosted its stake in shares of Lam Research by 2.6% in the second quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company's stock valued at $26,320,468,000 after buying an additional 1,545,830 shares in the last quarter. Bank of America Corp DE grew its holdings in Lam Research by 5.5% during the second quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company's stock worth $4,872,426,000 after acquiring an additional 584,489 shares during the period. Van ECK Associates Corp raised its position in Lam Research by 411.8% in the second quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock worth $4,805,368,000 after acquiring an additional 8,922,854 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Lam Research in the second quarter worth $3,777,585,000. Finally, Amundi raised its position in Lam Research by 23.7% in the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company's stock worth $2,168,107,000 after acquiring an additional 1,942,862 shares in the last quarter. 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: Reports pointed to strong AI-chip demand and December-quarter guidance that helped support a Tuesday rebound; Jim Cramer’s endorsement also added to the positive sentiment. What Is Going on With Lam Research Stock on Tuesday? The wider semiconductor sector’s recovery provided another tailwind. Lam Research Stock Rises Amid Semiconductor Sector Rebound
• Positive Sentiment: Bernstein reportedly sees 53% potential upside after LRCX fell 34% over the past month, suggesting some analysts view the selloff as an opportunity. Bernstein Sees Upside in Lam Research
• Neutral Sentiment: Lam reported a record September quarter, with revenue of $8.22 billion and net income of $2.75 billion. Its December-quarter revenue outlook of about $8.6 billion and EPS guidance near $2.33 were broadly in line with expectations, limiting the positive surprise. Should Cautious Guidance Require Action From Lam Research Investors?
• Negative Sentiment: Component shortages could constrain execution, while management expects China-related revenue to decline in the near term. These risks, alongside concerns about AI spending across chip-equipment makers, contributed to the post-earnings selloff and may keep volatility elevated. Is Lam Research Stock's Fall a Bargain or a Warning?

Analyst Ratings Changes

A number of equities research analysts have commented on LRCX shares. Mizuho decreased their target price on shares of Lam Research from $365.00 to $360.00 and set an "outperform" rating on the stock in a research report on Thursday, October 22nd. Weiss Ratings cut shares of Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 4th. Zacks Research downgraded shares of Lam Research from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 22nd. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $375.00 price objective on shares of Lam Research in a research note on Monday, October 19th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $350.00 price objective (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Twenty-six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $360.23.

Insider Buying and Selling at Lam Research

In other news, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction 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 completion of the transaction, the insider owned 42,462 shares of the company's stock, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. 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 Bethany Mayer sold 9,557 shares of the business's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the sale, the director owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.31% of the company's stock.

Lam Research Stock Performance

NASDAQ LRCX opened at $230.72 on Wednesday. Lam Research Corporation has a 1-year low of $135.50 and a 1-year high of $438.50. The company has a market capitalization of $288.21 billion, a P/E ratio of 34.38, a PEG ratio of 0.84 and a beta of 1.97. The business has a 50 day moving average price of $291.15 and a 200 day moving average price of $283.95. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.86.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.18 by $0.02. The firm had revenue of $8.22 billion during the quarter, compared to analysts' expectations of $8.14 billion. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. Lam Research's revenue was up 54.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.26 earnings per share. Sell-side analysts expect that Lam Research Corporation will post 9.59 EPS for the current fiscal year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This is a boost from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $1.32 annualized dividend and a dividend yield of 0.6%. Lam Research's dividend payout ratio is presently 19.67%.

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.

Want to see what other hedge funds are holding LRCX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lam Research Corporation (NASDAQ:LRCX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.