Lam Research (NASDAQ:LRCX) Sets New 52-Week High - Here's What Happened

Key Points

• Lam Research shares hit a new 52-week high after trading as high as $323.98, extending a strong rally and finishing the day up about 5.7%.
• Analyst sentiment remains upbeat, with 27 Buy ratings and 7 Hold ratings; the consensus target price is $293.46, though several firms have recently raised their price targets to as high as $325.
• Recent earnings beat expectations, as Lam Research reported Q3 EPS of $1.47 versus $1.36 expected and revenue of $5.84 billion, up 23.8% year over year; the company also announced a quarterly dividend of $0.26 per share.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $323.98 and last traded at $322.68, with a volume of 9761769 shares trading hands. The stock had previously closed at $305.35.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on LRCX shares. UBS Group set a $300.00 price objective on Lam Research in a research note on Thursday, January 29th. Royal Bank Of Canada lifted their price objective on Lam Research from $290.00 to $310.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft lifted their price objective on Lam Research from $300.00 to $325.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Citic Securities lifted their price objective on Lam Research from $165.00 to $275.00 and gave the company a "buy" rating in a research note on Friday, January 30th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Lam Research in a research note on Thursday, January 29th. Twenty-seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and a consensus target price of $293.46.

Lam Research Trading Up 5.7%

The company has a 50-day moving average price of $258.19 and a 200-day moving average price of $217.89. The firm has a market capitalization of $403.53 billion, a price-to-earnings ratio of 60.88, a PEG ratio of 2.53 and a beta of 1.81. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data 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 business had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $5.70 billion. During the same period in the prior year, the firm posted $1.04 EPS. The business'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, research analysts forecast that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Dividend Announcement

The business 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. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.3%. Lam Research's dividend payout ratio is currently 19.62%.

Insider Buying and Selling at Lam Research

In other news, insider Ava Harter sold 6,010 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the completion of the transaction, the insider directly owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the transaction, the chief financial officer directly owned 1,081,705 shares of the company's stock, valued at approximately $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 120,066 shares of company stock valued at $27,953,242 in the last ninety days. Insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

A number of institutional investors and hedge funds have recently modified their holdings of the company. Cedar Mountain Advisors LLC grew its holdings in Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after buying an additional 85 shares during the last quarter. Vermillion Wealth Management Inc. acquired a new stake in Lam Research during the 1st quarter valued at $26,000. PMV Capital Advisers LLC purchased a new position in shares of Lam Research during the 4th quarter worth $25,000. Bayban purchased a new position in shares of Lam Research during the 4th quarter worth $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Lam Research during the 4th quarter worth $27,000. Institutional investors and hedge funds 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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