Lam Research Corporation $LRCX Stock: Western Financial Corp CA Decreases Position

Key Points

• Western Financial Corp CA cut its Lam Research stake by 59.6% in the third quarter, selling 12,396 shares and retaining 8,414 shares valued at approximately $2.76 million. Institutional investors collectively own 84.61% of LRCX.
• Lam Research reported better-than-expected quarterly results, with $1.82 in EPS and $6.72 billion in revenue, representing 30% year-over-year growth. The company also raised its quarterly dividend to $0.33 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $364.59, although the stock has recently declined amid profit-taking and valuation concerns.

Western Financial Corp CA trimmed its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 59.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 8,414 shares of the semiconductor company's stock after selling 12,396 shares during the period. Lam Research makes up 0.9% of Western Financial Corp CA's portfolio, making the stock its 26th biggest position. Western Financial Corp CA's holdings in Lam Research were worth $2,764,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Sanders Morris Harris LLC purchased a new stake in shares of Lam Research during the third quarter worth about $13,935,000. Consilium Wealth Advisory LLC lifted its stake in shares of Lam Research by 3.2% in the third quarter. Consilium Wealth Advisory LLC now owns 7,604 shares of the semiconductor company's stock worth $2,498,000 after acquiring an additional 236 shares in the last quarter. N10 Wealth LLC grew its stake in Lam Research by 25.2% during the 3rd quarter. N10 Wealth LLC now owns 42,491 shares of the semiconductor company's stock valued at $13,959,000 after purchasing an additional 8,548 shares in the last quarter. N10 Assets LLC increased its holdings in Lam Research by 10.3% during the 3rd quarter. N10 Assets LLC now owns 36,940 shares of the semiconductor company's stock worth $12,135,000 after purchasing an additional 3,464 shares during the last quarter. Finally, Focus Financial Network Inc. increased its holdings in Lam Research by 17.7% during the 3rd quarter. Focus Financial Network Inc. now owns 1,501 shares of the semiconductor company's stock worth $493,000 after purchasing an additional 226 shares during the last quarter. Hedge funds and other institutional investors own 84.61% of the company's stock.

Lam Research Stock Performance

Shares of LRCX traded down $14.19 during mid-day trading on Wednesday, hitting $286.92. The stock had a trading volume of 10,326,069 shares, compared to its average volume of 10,659,057. Lam Research Corporation has a fifty-two week low of $135.50 and a fifty-two week high of $438.50. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company has a market cap of $359.06 billion, a PE ratio of 49.81, a PEG ratio of 1.23 and a beta of 1.85. The company's fifty day simple moving average is $310.54 and its two-hundred day simple moving average is $307.88.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The business had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same period in the prior year, the company posted $1.33 EPS. The business's revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, equities analysts expect that Lam Research Corporation will post 9.34 earnings per share for the current year.

Lam Research Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 23rd. Lam Research's dividend payout ratio is currently 22.92%.

Lam Research News Roundup

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

• Positive Sentiment: Wall Street’s consensus price target implies approximately 25.6% upside. Zacks noted that rising earnings-estimate revisions may be more meaningful than the target itself, offering a potentially constructive near-term signal. Wall Street Analysts See a 25.6% Upside in Lam Research
• Positive Sentiment: Erste Group Bank raised its FY2027 EPS forecast to $9.40 from $9.34 and its FY2028 estimate to $11.99 from $11.68, indicating improving expectations for Lam Research’s longer-term earnings power. MarketBeat Lam Research analyst estimates
• Positive Sentiment: Lam Research is approaching its next quarterly earnings report, with the company previously guiding to strong results. Investors may look for confirmation that AI-related demand and wafer-fabrication spending remain healthy. Lam Research Set to Post Earnings
• Positive Sentiment: DBS Bank raised its price target to $416. In addition, institutional activity was broadly supportive in the latest reported quarter, with major investors including JPMorgan, Invesco and T. Rowe Price adding shares. DBS Bank lifts target to $416
• Neutral Sentiment: Recent commentary describes Lam Research as having a strong FY2027 setup ahead of earnings, but the stock’s elevated valuation means results and forward guidance will likely determine whether the shares recover. Lam Research Strong FY2027 Setup
• Negative Sentiment: Lam Research has fallen for seven consecutive sessions as semiconductor-equipment shares retreat after a powerful AI-driven rally. Investors appear to be taking profits and reassessing valuations ahead of key industry earnings reports. Semiconductor Equipment Stocks Slide
• Negative Sentiment: Insider-trading data shows 55 reported open-market sales and no purchases over the past six months, including sales by senior executives. While such transactions may reflect diversification, the one-sided pattern can weigh on sentiment.

Insiders Place Their Bets

In other news, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares of the company's stock, valued at approximately $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 accessible 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 Lam Research 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 of the company's stock, 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.

Analysts Set New Price Targets

A number of equities analysts have issued reports on LRCX shares. Rothschild & Co Redburn upped their target price on Lam Research from $305.00 to $420.00 and gave the company a "buy" rating in a research report on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $320.00 price target on shares of Lam Research in a research report on Thursday, July 30th. Fundamental Research set a $390.00 price target on shares of Lam Research in a research report on Thursday, October 1st. Susquehanna restated a "positive" rating and issued a $475.00 price target (up from $385.00) on shares of Lam Research in a research note on Tuesday, June 30th. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Lam Research currently has an average rating of "Moderate Buy" and an average target price of $364.59.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company's portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.

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