Lam Research Corporation (NASDAQ:LRCX) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Lam Research has a consensus analyst rating of “Moderate Buy” from 34 brokerages, with 28 buy ratings and 6 holds. The average 12-month price target is about $358.67.
• The company reported better-than-expected earnings for its latest quarter, posting $1.47 EPS versus the $1.36 estimate and revenue of $5.84 billion versus $5.70 billion expected. Revenue rose 23.8% year over year.
• Lam Research also declared a quarterly dividend of $0.26 per share, which works out to an annualized yield of about 0.3%. Insider activity included recent stock sales, while institutional investors continue to hold the vast majority of shares.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) have earned a consensus rating of "Moderate Buy" from the thirty-four brokerages that are covering the stock, Marketbeat reports. Six analysts have rated the stock with a hold recommendation and twenty-eight have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $358.6733.

LRCX has been the topic of several research reports. Erste Group Bank lowered Lam Research from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. JPMorgan Chase & Co. increased their price target on shares of Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a research report on Thursday, April 23rd. Morgan Stanley raised their price objective on shares of Lam Research from $331.00 to $404.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. Mizuho lifted their price objective on shares of Lam Research from $380.00 to $400.00 and gave the company an "outperform" rating in a report on Thursday, July 9th. Finally, Bank of America upped their target price on shares of Lam Research from $330.00 to $480.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd.

Lam Research Price Performance

Lam Research stock opened at $313.30 on Monday. The company's 50 day simple moving average is $339.57 and its 200-day simple moving average is $269.60. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. Lam Research has a 1 year low of $90.93 and a 1 year high of $438.50. The company has a market capitalization of $391.80 billion, a price-to-earnings ratio of 59.11, a price-to-earnings-growth ratio of 1.86 and a beta of 1.80.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. During the same quarter last year, the firm earned $1.04 EPS. The firm's revenue for the quarter was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, equities research analysts expect that Lam Research will post 5.68 earnings per share for the current year.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were paid 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 payout ratio is 19.62%.

Insider Buying and Selling

In related news, SVP Neil J. Fernandes sold 7,659 shares of the business's 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 completion of the transaction, the senior vice president directly owned 58,470 shares of the company's stock, valued at $18,102,312. The trade was a 11.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through 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 company's stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 104,621 shares of company stock worth $33,804,737 over the last ninety days. Insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Cedar Mountain Advisors LLC lifted its stake 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 acquiring an additional 85 shares during the last quarter. Vermillion Wealth Management Inc. purchased a new stake in shares of Lam Research in the 1st quarter valued at approximately $26,000. PMV Capital Advisers LLC purchased a new stake in shares of Lam Research in the 4th quarter valued at approximately $25,000. Bayban acquired a new stake in shares of Lam Research in the 4th quarter valued at $26,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Lam Research in the 4th quarter valued at $27,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

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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