Lam Research (NASDAQ:LRCX) Reaches New 1-Year High - Should You Buy?

Key Points

• Lam Research hit a new 52-week high, with shares trading as high as $349.09 before finishing at $337.54, extending a strong rally in the stock.
• Wall Street sentiment remains positive overall, with 27 Buy ratings and 7 Hold ratings; the consensus price target is $306.52, though Wells Fargo recently boosted its target to $575.
• The company reported better-than-expected quarterly results, including EPS of $1.47 versus $1.36 expected and revenue of $5.84 billion, up 23.8% year over year.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price reached a new 52-week high on Tuesday . The stock traded as high as $349.09 and last traded at $337.5430, with a volume of 2124800 shares traded. The stock had previously closed at $324.45.

Wall Street Analyst Weigh In

LRCX has been the topic of several research analyst reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price target on shares of Lam Research in a report on Thursday, April 23rd. The Goldman Sachs Group reiterated a "buy" rating and issued a $290.00 target price on shares of Lam Research in a research report on Thursday, April 23rd. New Street Research increased their target price on Lam Research from $235.00 to $280.00 and gave the company a "neutral" rating in a research note on Monday, April 27th. Erste Group Bank cut Lam Research from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, Wells Fargo & Company reissued an "overweight" rating and issued a $575.00 target price (up from $320.00) on shares of Lam Research in a research note on Monday, June 1st. Twenty-seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $306.52.

Lam Research Trading Down 0.9%

The firm has a market cap of $402.01 billion, a P/E ratio of 60.10, a PEG ratio of 2.51 and a beta of 1.85. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The stock has a 50 day moving average of $275.48 and a 200 day moving average of $228.55.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data 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 analyst estimates of $5.70 billion. During the same period last year, the business posted $1.04 earnings per share. Lam Research'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, equities research analysts predict that Lam Research Corporation will post 5.67 EPS for the current year.

Lam Research Dividend Announcement

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

Insider Activity at Lam Research

In other news, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the completion of the transaction, the senior vice president directly owned 66,129 shares in the company, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of Lam Research stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the transaction, the insider owned 53,205 shares of the company's stock, valued at $13,762,005.30. The trade was a 10.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 31,839 shares of company stock valued at $8,561,667 over the last quarter. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

Several institutional investors and hedge funds have recently made changes to their positions in LRCX. PMV Capital Advisers LLC bought a new stake in shares of Lam Research during the fourth quarter valued at approximately $25,000. Stance Capital LLC bought a new stake in shares of Lam Research during the third quarter valued at approximately $26,000. Bayban bought a new stake in shares of Lam Research during the fourth quarter valued at approximately $26,000. Vermillion Wealth Management Inc. bought a new stake in shares of Lam Research during the first quarter valued at approximately $26,000. Finally, Cedar Mountain Advisors LLC increased its position in shares of Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after acquiring an additional 85 shares in the last quarter. Institutional investors own 84.61% of the company's stock.

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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