TD Waterhouse Canada Inc. Grows Stock Position in Lam Research Corporation $LRCX

Key Points

• TD Waterhouse Canada increased its Lam Research position by 21.8% in the second quarter, purchasing 70,568 additional shares for a total holding of 393,729 shares valued at approximately $170.6 million. Institutional investors collectively own 84.61% of the company.
• Lam Research reported quarterly earnings of $1.82 per share and revenue of $6.72 billion, exceeding analyst expectations, while revenue rose 30% year over year. The company also raised its quarterly dividend from $0.26 to $0.33 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $358.97 price target, but valuation and market risks remain following the stock’s rally. Recent insider sales, rising Treasury yields and China exposure could add pressure.

TD Waterhouse Canada Inc. boosted its position in Lam Research Corporation (NASDAQ:LRCX - Free Report) by 21.8% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 393,729 shares of the semiconductor company's stock after buying an additional 70,568 shares during the period. TD Waterhouse Canada Inc.'s holdings in Lam Research were worth $170,615,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of the company. Paladin Partners LLC purchased a new stake in shares of Lam Research in the second quarter valued at about $26,000. Bravera Wealth acquired a new stake in Lam Research in the second quarter valued at about $46,000. Cedar Mountain Advisors LLC lifted its position in Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 85 shares during the period. Comprehensive Financial Planning Inc. PA purchased a new stake in Lam Research in the 2nd quarter valued at approximately $52,000. Finally, Vermillion Wealth Management Inc. purchased a new stake in Lam Research in the 1st quarter valued at approximately $26,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

Lam Research Price Performance

LRCX stock opened at $292.66 on Friday. The firm has a 50 day moving average of $322.77 and a 200-day moving average of $291.28. The company has a market cap of $366.21 billion, a price-to-earnings ratio of 50.81, a PEG ratio of 1.14 and a beta of 1.85. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. Lam Research Corporation has a 12-month low of $97.16 and a 12-month high of $438.50.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $6.66 billion. During the same quarter in the prior year, the firm posted $1.33 EPS. The company'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. As a group, equities analysts expect that Lam Research Corporation will post 9.33 EPS for the current fiscal year.

Lam Research Increases Dividend

The company 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 $0.33 dividend. This represents a $1.32 annualized dividend and a 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 18.06%.

Lam Research News Roundup

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

• Positive Sentiment: Investor coverage continues to identify Lam Research as a beneficiary of AI data-center spending, memory-chip demand and advanced semiconductor manufacturing. Articles point to opportunities across etch, deposition and other wafer-fabrication equipment markets. AI data-center spending article
• Positive Sentiment: Lam’s fundamental momentum remains strong. Its latest quarterly results exceeded analyst expectations for earnings and revenue, with revenue up 30% year over year, and management provided quarterly EPS guidance of $2.00 to $2.30. The company also raised its quarterly dividend from $0.26 to $0.33, supporting shareholder returns. Dividend increase article
• Positive Sentiment: Lam Research was included in growth-at-a-reasonable-price and AI-investment stock screens, indicating that some analysts believe its earnings growth can support the company’s premium valuation. GARP stocks article
• Neutral Sentiment: UBS lowered its Lam Research price target to $425 from $435 but maintained a Buy rating. The reduction signals more measured expectations while the rating still reflects confidence in the company’s long-term prospects. UBS price-target article
• Negative Sentiment: Valuation is a key risk after LRCX’s substantial multiyear rally. Recent commentary says the shares appear fully priced, leaving less room for disappointment and making continued gains dependent on strong execution and earnings growth. Lam Research valuation article
• Negative Sentiment: An insider sold 5,000 shares valued at approximately $1.5 million. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which limits its significance, but it contributed to near-term selling pressure. Insider sale article
• Negative Sentiment: Rising Treasury yields and renewed inflation concerns are weighing on high-multiple semiconductor stocks by reducing the present value of future growth. Exposure to China and the possibility of limited near-term returns add further caution. Market pressure article

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business's 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 sale, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 77,782 shares of company stock valued at $26,755,370. Insiders own 0.31% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Rothschild & Co Redburn increased their target price on Lam Research from $305.00 to $420.00 and gave the stock a "buy" rating in a research note on Wednesday, June 17th. Barclays reissued an "overweight" rating and issued a $335.00 price target (up from $275.00) on shares of Lam Research in a report on Thursday, June 11th. Raymond James Financial set a $425.00 price target on Lam Research in a research note on Wednesday, June 10th. Needham & Company LLC reaffirmed a "buy" rating and set a $390.00 price objective on shares of Lam Research in a report on Thursday, July 30th. Finally, Citigroup reissued a "buy" rating and issued a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. One 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 data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $358.97.

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.

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