Pinnacle Associates Ltd. Cuts Stock Position in Lam Research Corporation $LRCX

Key Points

• Pinnacle Associates Ltd. cut its Lam Research position by 10.8% in the fourth quarter, selling 45,952 shares and ending with 378,825 shares worth about $64.8 million.
• Despite the trimming, institutional ownership remains high: hedge funds and other institutional investors still hold 84.61% of Lam Research, and several smaller firms recently initiated new stakes.
• Wall Street sentiment is broadly positive, with 26 Buy ratings and 8 Hold ratings; analysts’ recent price targets range up to $375, while Lam Research also posted strong quarterly results that beat estimates and raised guidance.

Pinnacle Associates Ltd. trimmed its position in shares of Lam Research Corporation (NASDAQ:LRCX - Free Report) by 10.8% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 378,825 shares of the semiconductor company's stock after selling 45,952 shares during the period. Lam Research comprises about 0.8% of Pinnacle Associates Ltd.'s portfolio, making the stock its 22nd biggest position. Pinnacle Associates Ltd.'s holdings in Lam Research were worth $64,847,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in LRCX. PMV Capital Advisers LLC purchased a new stake in shares of Lam Research during the fourth quarter worth approximately $25,000. Stance Capital LLC purchased a new stake in shares of Lam Research during the third quarter worth approximately $26,000. Triumph Capital Management purchased a new stake in shares of Lam Research during the third quarter worth approximately $27,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Lam Research during the second quarter worth approximately $29,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in shares of Lam Research during the third quarter worth approximately $40,000. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on LRCX shares. Wall Street Zen lowered shares of Lam Research from a "buy" rating to a "hold" rating in a research note on Sunday. Citigroup restated a "buy" rating and set a $315.00 target price (up from $300.00) on shares of Lam Research in a research note on Thursday, April 23rd. Needham & Company LLC restated a "buy" rating and set a $300.00 target price on shares of Lam Research in a research note on Thursday, April 23rd. UBS Group set a $300.00 target price on shares of Lam Research in a research note on Thursday, January 29th. Finally, Berenberg Bank increased their price target on shares of Lam Research from $265.00 to $335.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Twenty-six analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $291.75.

Insider Activity

In other news, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the completion of the sale, the senior vice president directly owned 66,129 shares of the company's stock, valued at approximately $16,872,153.06. This represents a 21.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total value of $11,214,269.71. Following the completion of the sale, the chief financial officer directly owned 1,081,705 shares of the company's stock, valued at $242,334,371.15. The trade was a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 120,066 shares of company stock valued at $27,953,242. 0.31% of the stock is currently owned by company insiders.

Lam Research News Roundup

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

• Positive Sentiment: B. Riley raised its price target on Lam Research to $375 from $350 and reiterated a buy rating, signaling continued upside expectations. MarketScreener
• Positive Sentiment: Seaport Research initiated coverage with a buy rating and a $300 price target, adding another bullish analyst view on the stock. Seaport Research Affirms Lam Research Corporation (LRCX) as One of The Top Tech Stocks in Louis Navellier’s Portfolio
• Positive Sentiment: Commentary around Lam Research’s near-50% gross margin and guidance for about 50.5% gross margin suggests strong pricing power and improving profitability, helped by AI-led demand. LRCX's Gross Margin Near 50%: More Upside Ahead Amid AI-Led Demand?
• Positive Sentiment: Articles highlighting the memory-chip shortage argue that higher investments in semiconductor equipment could benefit Lam Research, which makes memory and wafer-fabrication tools. The Memory Shortage Has Supercharged This AI Stock That Has Jumped 293% in a Year. It Can Still Soar Higher (Hint: It's Not Micron or Sandisk)
• Neutral Sentiment: Lam Research announced that CEO Tim Archer and CFO Doug Bettinger will participate in upcoming investor conferences, which is supportive for visibility but not a direct business catalyst. Lam Research Corporation Announces Participation at Upcoming Conferences
• Neutral Sentiment: Recent “buy/sell/hold” and long-term performance articles are mostly sentiment pieces and do not appear to change the company’s fundamentals directly. Lam Research (LRCX): Buy, sell, or hold post Q1 earnings?

Lam Research Stock Performance

Shares of Lam Research stock opened at $295.44 on Thursday. The firm has a market capitalization of $369.47 billion, a P/E ratio of 55.74, a P/E/G ratio of 2.39 and a beta of 1.81. Lam Research Corporation has a 52 week low of $79.49 and a 52 week high of $300.00. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The firm's 50 day moving average is $243.36 and its two-hundred day moving average is $209.17.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm's revenue was up 23.8% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Research analysts forecast that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

About Lam Research

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.