Lam Research (NASDAQ:LRCX) Hits New 12-Month High - What's Next?

Key Points

• Lam Research hit a new 52-week high, trading as high as $401.30 before easing slightly, after a strong run that has pushed the stock well above its 50-day and 200-day moving averages.
• Analyst sentiment remains constructive, with several firms raising price targets and the stock carrying a “Moderate Buy” consensus rating; the average target price is $329.59, though some targets now sit above $400.
• Recent fundamentals were solid, as the company beat quarterly EPS and revenue expectations, posted 23.8% year-over-year revenue growth, and maintained a quarterly dividend of $0.26 per share.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $401.30 and last traded at $396.6490, with a volume of 1138057 shares changing hands. The stock had previously closed at $389.04.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on LRCX. Cantor Fitzgerald set a $425.00 price objective on Lam Research and gave the stock an "overweight" rating in a research note on Wednesday, June 10th. Susquehanna raised their target price on Lam Research from $350.00 to $385.00 and gave the company a "positive" rating in a research note on Thursday, April 23rd. Evercore lifted their target price on Lam Research from $275.00 to $300.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. Bank of America upped their price target on shares of Lam Research from $285.00 to $330.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Finally, Erste Group Bank lowered shares of Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $329.59.

Lam Research Trading Up 1.6%

The company's 50-day moving average is $301.75 and its 200 day moving average is $242.18. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The firm has a market cap of $494.19 billion, a PE ratio of 74.72, a P/E/G ratio of 3.21 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping 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 business had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $5.70 billion. During the same period last year, the company posted $1.04 earnings per share. The firm's quarterly revenue was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, sell-side analysts predict that Lam Research Corporation will post 5.7 EPS for the current year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Wednesday, June 17th. Lam Research's dividend payout ratio is presently 19.62%.

Insider Activity at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the sale, the insider owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Eric Brandt sold 54,500 shares of the stock in a transaction that occurred 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 in the company, valued at $69,881,114. This represents a 21.48% 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. In the last quarter, insiders sold 86,339 shares of company stock valued at $27,680,267. 0.31% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Institutional investors and hedge funds have recently modified their holdings of the business. Fideuram Asset Management Ireland dac bought a new position in Lam Research during the 4th quarter worth about $10,035,000. Generali Investments Management Co LLC lifted its holdings in shares of Lam Research by 62.0% in the fourth quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company's stock valued at $6,209,000 after purchasing an additional 13,878 shares in the last quarter. Thoroughbred Financial Services LLC boosted its position in shares of Lam Research by 115.2% during the third quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company's stock worth $2,972,000 after buying an additional 11,883 shares during the period. Hillsdale Investment Management Inc. acquired a new position in shares of Lam Research during the third quarter worth about $1,229,000. Finally, Whalen Wealth Management Inc. bought a new position in shares of Lam Research during the fourth quarter worth about $1,423,000. Institutional investors and hedge funds 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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