FY2027 EPS Estimates for Lam Research Decreased by Analyst

Key Points

• Erste Group Bank trimmed its FY2027 EPS estimate for Lam Research slightly to $7.98 from $7.99 and kept a Hold rating on the stock.
• Lam Research recently reported better-than-expected quarterly results, with EPS of $1.47 versus $1.36 expected and revenue of $5.84 billion versus $5.70 billion anticipated. Revenue also rose 23.8% year over year.
• Wall Street remains generally upbeat on the company, with 28 Buy ratings and a consensus target price of $358.67, even as some insiders have been selling shares.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Analysts at Erste Group Bank decreased their FY2027 earnings estimates for Lam Research in a report issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now forecasts that the semiconductor company will post earnings per share of $7.98 for the year, down from their prior estimate of $7.99. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Lam Research's current full-year earnings is $5.68 per share.

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

Several other research analysts also recently commented on the stock. Evercore raised their price objective on shares of Lam Research from $275.00 to $300.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. The Goldman Sachs Group reaffirmed a "buy" rating and set a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Barclays restated an "overweight" rating and set a $335.00 price target (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. Mizuho upped their price target on shares of Lam Research from $380.00 to $400.00 and gave the stock an "outperform" rating in a report on Thursday, July 9th. Finally, Morgan Stanley increased their price objective on Lam Research from $331.00 to $404.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $358.67.

Lam Research Price Performance

LRCX stock opened at $313.30 on Monday. The company has a market capitalization of $391.80 billion, a price-to-earnings ratio of 59.11, a PEG ratio of 1.86 and a beta of 1.80. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The stock has a fifty day moving average of $339.57 and a 200-day moving average of $269.60. Lam Research has a fifty-two week low of $90.93 and a fifty-two week high of $438.50.

Lam Research Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were issued a $0.26 dividend. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research's dividend payout ratio (DPR) is currently 19.62%.

Insiders Place Their Bets

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares in the company, valued at $29,192,570. This trade represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the 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 transaction, the director owned 199,205 shares of the company's stock, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 104,621 shares of company stock valued at $33,804,737 over the last three months. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Lam Research in the fourth quarter worth about $3,645,427,000. Price T Rowe Associates Inc. MD grew its stake in shares of Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock worth $2,344,347,000 after acquiring an additional 10,666,540 shares during the period. Franklin Resources Inc. boosted its stake in shares of Lam Research by 57.0% in the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company's stock worth $1,730,724,000 after buying an additional 3,671,073 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Lam Research by 235.5% in the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock worth $890,040,000 after buying an additional 3,649,553 shares during the last quarter. Finally, J. Stern & Co. LLP raised its holdings in Lam Research by 3,826.9% in the 4th quarter. J. Stern & Co. LLP now owns 3,459,377 shares of the semiconductor company's stock worth $592,176,000 after purchasing an additional 3,371,283 shares during the period. 84.61% of the stock is owned by institutional investors.

Lam Research Company 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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