Lam Research Corporation $LRCX Stock Sold by Valley National Advisers Inc.

Key Points

• Valley National Advisers cut its Lam Research position by 26% in the third quarter, selling 15,387 shares and retaining 43,779 shares valued at approximately $14.4 million. Institutional investors collectively own 84.61% of LRCX.
• Lam Research reported strong quarterly results: revenue rose 54.4% year over year to $8.22 billion and adjusted EPS reached $2.20, beating estimates. Management expects AI infrastructure, memory upgrades and advanced manufacturing to drive wafer-fabrication-equipment spending above $200 billion in 2027.
• Despite bullish analyst sentiment, risks remain: component shortages and cleanroom constraints may limit shipments, while declining China revenue and broader AI-chip valuation concerns could pressure the stock. Analysts maintain a “Moderate Buy” consensus with an average price target of $354.55.

Valley National Advisers Inc. reduced its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 26.0% in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 43,779 shares of the semiconductor company's stock after selling 15,387 shares during the quarter. Lam Research comprises 1.6% of Valley National Advisers Inc.'s portfolio, making the stock its 13th largest holding. Valley National Advisers Inc.'s holdings in Lam Research were worth $14,382,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. State Street Corp raised 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 worth $26,320,468,000 after buying an additional 1,545,830 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Lam Research by 5.5% in the second 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 buying an additional 584,489 shares during the period. Van ECK Associates Corp boosted its stake in Lam Research by 411.8% during the second quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock valued at $4,805,368,000 after buying an additional 8,922,854 shares in the last quarter. Amundi boosted its stake in 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 buying an additional 1,942,862 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its stake in Lam Research by 2.0% during the first quarter. Janus Henderson Group PLC now owns 9,265,026 shares of the semiconductor company's stock valued at $1,975,244,000 after buying an additional 181,087 shares in the last quarter. 84.61% of the stock is owned by institutional investors.

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.

Insider Activity

In other Lam Research news, insider Ava Harter sold 5,000 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the sale, the insider directly owned 42,462 shares of the company's stock, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 company'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 sale, the director directly owned 20,995 shares of the company's stock, 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. 0.31% of the stock is currently owned by insiders.

Lam Research Stock Down 0.0%

Shares of Lam Research stock opened at $230.10 on Friday. The stock's fifty day moving average is $301.90 and its 200-day moving average is $309.32. The firm 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. The company has a quick ratio of 1.91, 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 announced its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The business had revenue of $8.22 billion during the quarter, compared to the consensus estimate of $8.14 billion. During the same period in the prior year, the business posted $1.26 earnings per share. Lam Research's revenue was up 54.4% compared to the same quarter last year. Equities analysts anticipate that Lam Research Corporation will post 9.48 earnings per share for the current year.

Lam Research Increases Dividend

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

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. TD Cowen restated a "buy" rating and set a $400.00 price objective (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Citigroup reaffirmed a "buy" rating and issued a $435.00 price objective (down from $450.00) on shares of Lam Research in a research note on Thursday. Fundamental Research set a $390.00 target price on shares of Lam Research in a report on Thursday, October 1st. Berenberg Bank set a $420.00 target price on shares of Lam Research in a research note on Wednesday, September 9th. Finally, UBS Group reissued a "buy" rating and set a $400.00 target price (down from $425.00) on shares of Lam Research in a research note on Thursday. Twenty-six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lam Research presently has an average rating of "Moderate Buy" and a consensus price target of $354.55.

Lam Research Company 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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