Lam Research (NASDAQ:LRCX) Reaches New 1-Year High - Time to Buy?

Key Points

• Lam Research Corporation shares reached a new 52-week high at $113.76, reflecting significant trading activity with over 2.1 million shares exchanged.
• Analysts have mixed opinions on the stock, with 20 giving it a Buy rating and several adjusting their target prices, the highest being $120.00 from Cantor Fitzgerald.
• The company reported strong financial results, with a 33.6% year-over-year revenue increase and earnings per share of $1.33, beating expectations.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $112.75 and last traded at $113.76, with a volume of 2137600 shares changing hands. The stock had previously closed at $107.36.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on LRCX shares. Barclays set a $83.00 target price on shares of Lam Research and gave the company an "equal weight" rating in a research report on Monday, July 28th. Wells Fargo & Company set a $98.00 price target on shares of Lam Research and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Cantor Fitzgerald lifted their price objective on Lam Research from $115.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, August 21st. Wall Street Zen raised Lam Research from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Finally, Summit Insights downgraded Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, July 31st. Twenty analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Lam Research has an average rating of "Moderate Buy" and an average price target of $107.52.

Lam Research Stock Up 6.5%

The firm has a market capitalization of $144.76 billion, a price-to-earnings ratio of 27.51, a P/E/G ratio of 1.36 and a beta of 1.76. The firm has a fifty day moving average price of $100.37 and a 200 day moving average price of $86.21. The company has a current ratio of 2.21, a quick ratio of 1.55 and a debt-to-equity ratio of 0.38.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The semiconductor company reported $1.33 earnings per share for the quarter, beating analysts' consensus estimates of $1.21 by $0.12. The firm had revenue of $5.17 billion during the quarter, compared to analysts' expectations of $4.99 billion. Lam Research had a return on equity of 58.17% and a net margin of 29.07%.The business's revenue was up 33.6% on a year-over-year basis. During the same period last year, the firm posted $1.03 EPS. Lam Research has set its Q1 2026 guidance at 1.100-1.300 EPS. Sell-side analysts anticipate that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, September 24th will be issued a dividend of $0.26 per share. The ex-dividend date of this dividend is Wednesday, September 24th. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. This is an increase from Lam Research's previous quarterly dividend of $0.23. Lam Research's payout ratio is currently 22.12%.

Hedge Funds Weigh In On Lam Research

Large investors have recently modified their holdings of the stock. Bahl & Gaynor Inc. grew its stake in shares of Lam Research by 1.9% during the second quarter. Bahl & Gaynor Inc. now owns 5,602 shares of the semiconductor company's stock worth $545,000 after buying an additional 102 shares during the last quarter. BankPlus Wealth Management LLC lifted its holdings in Lam Research by 2.0% in the second quarter. BankPlus Wealth Management LLC now owns 5,248 shares of the semiconductor company's stock valued at $511,000 after buying an additional 105 shares during the period. ORG Partners LLC lifted its holdings in Lam Research by 7.3% in the second quarter. ORG Partners LLC now owns 1,676 shares of the semiconductor company's stock valued at $162,000 after buying an additional 114 shares during the period. Quotient Wealth Partners LLC lifted its holdings in Lam Research by 2.1% in the second quarter. Quotient Wealth Partners LLC now owns 5,437 shares of the semiconductor company's stock valued at $529,000 after buying an additional 114 shares during the period. Finally, Fairvoy Private Wealth LLC lifted its holdings in Lam Research by 3.0% in the second quarter. Fairvoy Private Wealth LLC now owns 4,185 shares of the semiconductor company's stock valued at $407,000 after buying an additional 120 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

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