Lam Research Corporation $LRCX Stock: AEGON ASSET MANAGEMENT UK Plc Lowers Holdings

Key Points

• AEGON Asset Management UK cut its Lam Research stake by 17.2% in the third quarter, selling 36,652 shares and retaining 177,025 shares valued at about $58.2 million.
• Other institutions made mixed moves, but several increased holdings; institutional investors and hedge funds collectively own 84.61% of the stock.
• Lam Research beat quarterly earnings and revenue estimates, with revenue up 54.4% year over year. The company also authorized a $25 billion share repurchase plan and declared a $0.33 quarterly dividend.

AEGON ASSET MANAGEMENT UK Plc lowered its stake in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 17.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 177,025 shares of the semiconductor company's stock after selling 36,652 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in Lam Research were worth $58,154,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Gryphon Financial Partners LLC grew its position in Lam Research by 4.7% during the third quarter. Gryphon Financial Partners LLC now owns 2,869 shares of the semiconductor company's stock worth $942,000 after buying an additional 130 shares in the last quarter. AlphaCore Capital LLC grew its holdings in shares of Lam Research by 7.5% during the 3rd quarter. AlphaCore Capital LLC now owns 12,936 shares of the semiconductor company's stock worth $4,254,000 after purchasing an additional 903 shares in the last quarter. Leuthold Group LLC grew its holdings in shares of Lam Research by 9.7% during the 3rd quarter. Leuthold Group LLC now owns 21,616 shares of the semiconductor company's stock worth $7,101,000 after purchasing an additional 1,914 shares in the last quarter. Retirement Systems of Alabama increased its position in shares of Lam Research by 18.6% during the third quarter. Retirement Systems of Alabama now owns 311,528 shares of the semiconductor company's stock valued at $102,340,000 after purchasing an additional 48,811 shares during the period. Finally, Fulcrum Asset Management LLP increased its position in shares of Lam Research by 148.5% during the third quarter. Fulcrum Asset Management LLP now owns 21,206 shares of the semiconductor company's stock valued at $6,868,000 after purchasing an additional 12,672 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Key Lam Research News

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

• Positive Sentiment: Coverage said Lam shares gained after a reported $25 billion buyback plan, citing strong AI demand, record earnings and a lower valuation as supporting factors. Yahoo Finance article Zacks article
• Positive Sentiment: Chip-equipment shares rallied broadly, with Lam reported up alongside Applied Materials and ASML. The sector move may have lifted LRCX amid optimism ahead of Applied Materials’ earnings. 247WallSt article
• Positive Sentiment: A dividend announcement was also cited in coverage of Lam’s share advance, adding to the capital-return news. American Banking News article
• Neutral Sentiment: B. Riley cut its price target to $310 from $338 but maintained a Buy rating, leaving its target well above the price cited in the report. The reduction is a cautionary signal, while the rating remains supportive. Tickerreport article
• Neutral Sentiment: Director Bethany Mayer sold 16 shares under a pre-arranged Rule 10b5-1 plan, a small transaction that reduced her holdings by 0.9%. SEC filing
• Negative Sentiment: Technical commentary described the rebound as occurring within a still-dominant downtrend, suggesting the recent strength may not yet signal a trend reversal. Technical analysis

Lam Research Stock Up 10.4%

Shares of NASDAQ LRCX opened at $221.31 on Tuesday. The firm's 50-day simple moving average is $282.76 and its 200 day simple moving average is $283.64. The company has a market cap of $276.45 billion, a price-to-earnings ratio of 32.76, a price-to-earnings-growth ratio of 0.82 and a beta of 1.97. The company has a quick ratio of 1.86, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. Lam Research Corporation has a 12-month low of $135.50 and a 12-month high of $438.50.

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

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 6th. Stockholders of record on Wednesday, December 2nd will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Wednesday, December 2nd. Lam Research's dividend payout ratio is 19.67%.

Lam Research announced that its Board of Directors has approved a stock repurchase plan on Thursday, November 5th that allows the company to repurchase $25 billion in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages recently commented on LRCX. Wells Fargo & Company restated an "overweight" rating and issued a $350.00 target price (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Berenberg Bank set a $420.00 price target on shares of Lam Research in a research note on Wednesday, September 9th. Needham & Company LLC lowered their price target on shares of Lam Research from $390.00 to $290.00 and set a "buy" rating on the stock in a report on Thursday, October 22nd. HSBC restated a "hold" rating and issued a $333.00 price objective on shares of Lam Research in a research note on Monday, July 27th. Finally, Evercore set a $315.00 price objective on shares of Lam Research in a report on Tuesday, October 20th. Twenty-six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $357.57.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the firm's stock in a transaction dated 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 transaction, the insider owned 42,462 shares in the company, valued at $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The transaction 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 firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 14,573 shares of company stock worth $4,523,606 in the last ninety days. 0.31% of the stock is currently owned by insiders.

About Lam Research

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits.

The company's wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations.

Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.

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