Palestra Capital Management LLC Invests $168.52 Million in Lam Research Corporation $LRCX

Key Points

• Palestra Capital Management initiated a $168.5 million Lam Research stake, purchasing 388,886 shares that represent about 5.7% of its portfolio. Institutional investors collectively own 84.61% of the company.
• Lam Research exceeded quarterly expectations with $1.82 in EPS and $6.72 billion in revenue, while revenue rose 30% year over year. Analysts maintain a generally bullish view, with a “Moderate Buy” consensus and an average price target of $357.31.
• The company is investing more than $3 billion over five years to expand its global R&D labs and support AI semiconductor innovation, though its high valuation and near-term investment costs present risks. Shares recently opened at $312.88, below the consensus target.

Palestra Capital Management LLC bought a new stake in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 388,886 shares of the semiconductor company's stock, valued at approximately $168,516,000. Lam Research makes up about 5.7% of Palestra Capital Management LLC's investment portfolio, making the stock its 9th largest holding.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Paladin Partners LLC bought a new stake in shares of Lam Research during the second quarter valued at approximately $26,000. Bravera Wealth purchased a new stake in Lam Research in the second quarter worth $46,000. Cedar Mountain Advisors LLC raised its holdings in Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after purchasing an additional 85 shares in the last quarter. Comprehensive Financial Planning Inc. PA bought a new position in Lam Research in the second quarter worth $52,000. Finally, Vermillion Wealth Management Inc. purchased a new position in Lam Research during the first quarter valued at $26,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

Lam Research Stock Down 0.6%

Shares of Lam Research stock opened at $312.88 on Thursday. The company has a 50-day simple moving average of $333.58 and a two-hundred day simple moving average of $288.43. The stock has a market capitalization of $391.51 billion, a PE ratio of 54.32, a price-to-earnings-growth ratio of 1.25 and a beta of 1.84. Lam Research Corporation has a 52-week low of $94.11 and a 52-week high of $438.50. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.13. The firm had revenue of $6.72 billion for the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The business's revenue for the quarter was up 30.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, analysts anticipate that Lam Research Corporation will post 9.32 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on LRCX shares. Jefferies Financial Group set a $335.00 target price on shares of Lam Research and gave the stock a "buy" rating in a research report on Thursday, July 30th. B. Riley Financial lowered their price target on shares of Lam Research from $385.00 to $350.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Rothschild & Co Redburn boosted their price objective on shares of Lam Research from $305.00 to $420.00 and gave the stock a "buy" rating in a research note on Wednesday, June 17th. UBS Group restated a "buy" rating and issued a $375.00 price objective (up from $310.00) on shares of Lam Research in a report on Tuesday, June 9th. Finally, Bank of America raised their target price on shares of Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $357.31.

More Lam Research News

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

• Positive Sentiment: AI-focused R&D expansion: Lam Research broke ground on a 120,000-square-foot laboratory in Tualatin, Oregon, as part of a planned investment of more than $3 billion in its global lab network over the next five years. The facility is intended to support collaboration with chipmakers and accelerate equipment innovations for advanced AI semiconductors. Lam Research Oregon lab announcement
• Positive Sentiment: Strong AI demand outlook: CEO Tim Archer said increasingly complex AI models require more computing power, bandwidth and storage, creating demand for semiconductor innovation. The investment reinforces Lam’s positioning as a supplier to the AI infrastructure buildout. Lam Research AI investment video
• Positive Sentiment: Favorable analyst and fundamentals commentary: Zacks highlighted AI-driven growth, recurring services revenue, earnings momentum and Lam’s balance sheet, while Mizuho maintained an “outperform” rating despite trimming its price target to $365 from $370. Lam’s latest reported quarter also showed 30% year-over-year revenue growth and an earnings beat.
• Neutral Sentiment: Investor outreach scheduled: CFO Doug Bettinger will participate in upcoming investor conferences. The events could provide updates on demand, AI exposure and the Oregon investment, but no new financial guidance was announced. Lam Research conference announcement
• Negative Sentiment: Investment and valuation concerns: The multibillion-dollar R&D expansion will raise near-term capital and operating costs, while the stock’s high earnings multiple leaves less room for disappointment. The modest analyst price-target reduction may also have limited enthusiasm.

Insider Buying and Selling at Lam Research

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the sale, the senior vice president directly owned 58,470 shares in the company, valued at approximately $18,102,312. This trade represents a 11.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company's stock, valued at approximately $69,881,114. The trade was a 21.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 80,441 shares of company stock worth $27,614,296. Insiders own 0.31% of the company's stock.

Lam Research Profile

Lam Research Corporation NASDAQ: LRCX is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam's product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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