Lam Research (NASDAQ:LRCX) Reaches New 12-Month High - Should You Buy?

Key Points

• Lam Research (NASDAQ:LRCX) has reached a new 52-week high, trading as high as $132.63 on Tuesday, with significant trading volume of over 13 million shares.
• Wall Street analysts have forecasted a moderate buy consensus for Lam Research, with a target price averaging $109.39, reflecting strong confidence in the company's growth potential.
• The company recently increased its quarterly dividend to $0.26 per share, showcasing a commitment to returning value to shareholders, with an annualized yield of 0.8%.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $132.63 and last traded at $132.20, with a volume of 13385530 shares traded. The stock had previously closed at $126.92.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on LRCX shares. Morgan Stanley set a $125.00 price objective on shares of Lam Research and gave the company an "equal weight" rating in a research report on Monday. Stifel Nicolaus raised their price objective on shares of Lam Research from $92.00 to $110.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. The Goldman Sachs Group assumed coverage on shares of Lam Research in a research note on Thursday, July 10th. They set a "buy" rating and a $115.00 price target on the stock. 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. Finally, Citigroup boosted their target price on shares of Lam Research from $113.00 to $120.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Twenty equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $109.39.

Lam Research Trading Up 4.2%

The company has a market capitalization of $166.71 billion, a price-to-earnings ratio of 31.78, a price-to-earnings-growth ratio of 1.63 and a beta of 1.76. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.55 and a current ratio of 2.21. The firm has a fifty day moving average price of $104.01 and a 200-day moving average price of $88.78.

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

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, September 24th will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. This is a positive change from Lam Research's previous quarterly dividend of $0.23. The ex-dividend date is Wednesday, September 24th. Lam Research's dividend payout ratio is 22.12%.

Hedge Funds Weigh In On Lam Research

Hedge funds have recently made changes to their positions in the stock. IMG Wealth Management Inc. bought a new stake in Lam Research in the second quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new stake in Lam Research in the second quarter worth approximately $27,000. Strategic Wealth Investment Group LLC bought a new stake in Lam Research in the second quarter worth approximately $29,000. Delos Wealth Advisors LLC bought a new stake in Lam Research in the second quarter worth approximately $30,000. Finally, REAP Financial Group LLC bought a new stake in Lam Research in the second quarter worth approximately $31,000. 84.61% of the stock is currently owned by institutional investors.

Lam Research Company Profile

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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