Motley Fool Asset Management LLC Purchases 8,982 Shares of Lam Research Corporation $LRCX

Key Points

• Motley Fool Asset Management increased its Lam Research position by 9.6% in the third quarter, adding 8,982 shares to hold 102,713 shares valued at approximately $33.7 million. Institutional investors collectively own 84.61% of the company.
• Lam Research reported quarterly revenue of $8.22 billion and EPS of $2.20, exceeding analyst expectations, while revenue grew 54.4% year over year. 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 $360.23, although the stock has experienced volatility and recent insider transactions were sales.

Motley Fool Asset Management LLC lifted its position in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 9.6% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 102,713 shares of the semiconductor company's stock after purchasing an additional 8,982 shares during the quarter. Lam Research comprises approximately 1.3% of Motley Fool Asset Management LLC's portfolio, making the stock its 17th largest holding. Motley Fool Asset Management LLC's holdings in Lam Research were worth $33,742,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. State Street Corp boosted its stake in Lam Research by 2.6% during 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 during the period. Bank of America Corp DE grew its position 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 buying an additional 584,489 shares in the last quarter. Van ECK Associates Corp increased its stake in Lam Research by 411.8% in the 2nd 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 during the last quarter. Bank of New York Mellon Corp bought a new position in Lam Research in the 2nd quarter worth about $3,777,585,000. Finally, Amundi raised its holdings in shares of Lam Research by 23.7% in the 1st quarter. Amundi now owns 10,147,479 shares of the semiconductor company's stock valued at $2,168,107,000 after acquiring an additional 1,942,862 shares in the last quarter. Institutional investors own 84.61% of the company's stock.

Lam Research Trading Up 5.4%

Shares of LRCX opened at $253.82 on Thursday. The firm has a fifty day simple moving average of $296.95 and a two-hundred day simple moving average of $283.50. Lam Research Corporation has a twelve month low of $135.50 and a twelve month high of $438.50. The stock has a market capitalization of $317.06 billion, a P/E ratio of 37.83, a PEG ratio of 0.86 and a beta of 1.85. 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 (NASDAQ:LRCX - Get Free Report) last issued 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 firm 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 company's quarterly revenue was up 54.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.26 earnings per share. On average, research analysts anticipate that Lam Research Corporation will post 9.59 EPS for the current year.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were issued a dividend of $0.33 per share. The ex-dividend date was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a yield of 0.5%. This is a boost from Lam Research's previous quarterly dividend of $0.26. Lam Research's dividend payout ratio (DPR) is presently 19.67%.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Strong earnings and outlook: Lam Research reported quarterly revenue of $8.22 billion, up sharply from the prior year and ahead of analyst expectations. Earnings per share also exceeded consensus, while management projected approximately $8.60 billion in revenue and about $2.33 in EPS for the December quarter, signaling continued demand. Lam Research Gains as Strong Earnings and a Chip-Sector Rebound Support Shares
• Positive Sentiment: Foundry momentum: Foundry revenue reached a record in fiscal first-quarter 2027, with foundry accounting for 46% of Systems revenue, up from 44% in the previous quarter. This supports the view that advanced-node manufacturing and rising chip complexity are driving equipment purchases. Lam Research Sees Record Foundry Sales
• Positive Sentiment: Industry tailwinds and valuation appeal: SK Hynix’s long-term memory shortage outlook suggests years of potential fab construction, while analysts and research services view LRCX as more attractive after its recent selloff. Several published price targets remain well above the current trading level.
• Neutral Sentiment: Institutional positioning was mixed: many funds added shares, but others reduced holdings. This indicates continued investor interest alongside ongoing uncertainty about semiconductor-cycle durability.
• Negative Sentiment: Recent volatility and insider selling: LRCX remains well below its recent high after concerns about AI spending and valuation triggered a sharp pullback. Reported insider activity over the past six months consisted entirely of sales, which may reinforce near-term caution.

Wall Street Analysts Forecast Growth

A number of research firms have commented on LRCX. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $375.00 price target on shares of Lam Research in a research note on Monday, October 19th. UBS Group restated a "buy" rating and set a $400.00 price objective (down from $425.00) on shares of Lam Research in a research report on Thursday, October 22nd. Morgan Stanley set a $339.00 price objective on shares of Lam Research and gave the stock an "overweight" rating in a report on Thursday, October 22nd. B. Riley Financial upped their target price on shares of Lam Research from $350.00 to $390.00 and gave the stock a "buy" rating in a research report on Thursday, October 1st. Finally, TD Cowen reiterated a "buy" rating and issued a $400.00 target price (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Twenty-six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $360.23.

Insider Activity at Lam Research

In other news, Director Bethany Mayer sold 9,557 shares of Lam Research 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 approximately $6,607,966.30. This trade represents a 31.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ava Harter sold 5,000 shares of the business's stock in a transaction that occurred on 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 transaction, the insider directly 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.31% of the company's stock.

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.

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