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

Key Points

• Lam Research shares hit a new 52-week high, trading as high as $410.98 and ending around $411.41 after a sharp rally, far above its prior close of $379.09.
• Analyst sentiment remains mostly bullish: 28 analysts rate the stock a Buy, six a Hold, with an average price target of $342.49, though some firms have recently raised targets as high as $480.
• The company has posted strong fundamentals, including quarterly EPS of $1.47 versus the $1.36 estimate and revenue of $5.84 billion, while also announcing a quarterly dividend of $0.26 per share.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares hit a new 52-week high on Monday . The stock traded as high as $410.98 and last traded at $411.4140, with a volume of 5495115 shares trading hands. The stock had previously closed at $379.09.

Wall Street Analyst Weigh In

Several analysts recently commented on LRCX shares. The Goldman Sachs Group reaffirmed a "buy" rating and set a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Erste Group Bank cut shares of Lam Research from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Bank of America boosted their price objective on Lam Research from $330.00 to $480.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Mizuho set a $380.00 target price on Lam Research and gave the company an "outperform" rating in a research report on Wednesday, May 27th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $342.49.

Lam Research Stock Performance

The stock has a market cap of $515.18 billion, a P/E ratio of 77.78, a price-to-earnings-growth ratio of 3.14 and a beta of 1.85. 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 stock has a 50 day simple moving average of $313.90 and a 200 day simple moving average of $250.20.

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

Lam Research Dividend Announcement

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

Insider Buying and Selling at Lam Research

In other news, SVP Neil J. Fernandes sold 18,170 shares of the business's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $255.14, for a total value 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. The trade was a 21.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the sale, the director directly owned 199,205 shares of the company's stock, valued at approximately $69,881,114. This trade 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. Insiders have sold a total of 86,339 shares of company stock valued at $27,680,267 in the last ninety days. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp lifted its position in shares of Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company's stock worth $8,024,684,000 after buying an additional 265,805 shares during the last quarter. Geode Capital Management LLC raised its stake in Lam Research by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company's stock worth $5,764,117,000 after acquiring an additional 126,613 shares in the last quarter. Invesco Ltd. raised its stake in Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares in the last quarter. Norges Bank bought a new position in shares of Lam Research in the fourth quarter worth about $3,645,427,000. Finally, Price T Rowe Associates Inc. MD lifted its holdings in shares of Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock worth $2,344,347,000 after acquiring an additional 10,666,540 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

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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