Lam Research (NASDAQ:LRCX) Shares Up 5.5% - What's Next?

Key Points

• Lam Research shares rose 5.5% in Tuesday trading, reaching an intraday high of $320.83 before last trading around $334.71, on volume slightly below its recent average.
• Several analysts raised price targets on the stock, with Susquehanna, Jefferies, TD Cowen and JPMorgan all lifting targets; the consensus rating remains Moderate Buy with an average price target of $303.30.
• The company reported strong quarterly results, beating EPS and revenue estimates with $1.47 EPS on $5.84 billion in revenue, and it also announced a quarterly dividend of $0.26 per share payable July 8.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price shot up 5.5% during mid-day trading on Tuesday . The stock traded as high as $320.83 and last traded at $334.7070. 8,034,670 shares traded hands during trading, a decline of 8% from the average session volume of 8,769,062 shares. The stock had previously closed at $317.12.

Analysts Set New Price Targets

Several brokerages have issued reports on LRCX. Susquehanna raised their price objective on shares of Lam Research from $350.00 to $385.00 and gave the stock a "positive" rating in a research report on Thursday, April 23rd. Jefferies Financial Group raised their price objective on shares of Lam Research from $285.00 to $315.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. TD Cowen lifted their target price on shares of Lam Research from $290.00 to $340.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. lifted their target price on shares of Lam Research from $300.00 to $315.00 and gave the company an "overweight" rating in a report on Thursday, April 23rd. Finally, Barclays set a $275.00 price objective on shares of Lam Research and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Lam Research has an average rating of "Moderate Buy" and an average price target of $303.30.

Lam Research Trading Up 5.5%

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 company has a market cap of $418.57 billion, a price-to-earnings ratio of 63.15, a PEG ratio of 2.63 and a beta of 1.85. The business's 50-day simple moving average is $265.55 and its 200-day simple moving average is $222.29.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.36 by $0.11. The company had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm's quarterly revenue was up 23.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Research analysts predict that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

Insiders Place Their Bets

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction dated 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 owned 66,129 shares in the company, valued at approximately $16,872,153.06. The trade was a 21.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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 dated 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 transaction, the insider owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 83,396 shares of company stock worth $20,109,927. Insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently modified their holdings of LRCX. Fideuram Asset Management Ireland dac purchased a new stake in Lam Research during the fourth quarter worth approximately $10,035,000. Generali Investments Management Co LLC grew its stake in Lam Research by 62.0% during the fourth quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company's stock worth $6,209,000 after buying an additional 13,878 shares during the period. Thoroughbred Financial Services LLC grew its stake in Lam Research by 115.2% during the third quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company's stock worth $2,972,000 after buying an additional 11,883 shares during the period. Vanguard Group Inc. grew its stake in Lam Research by 0.3% during the third quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company's stock worth $17,537,447,000 after buying an additional 364,949 shares during the period. Finally, Penserra Capital Management LLC grew its stake in Lam Research by 40.8% during the third quarter. Penserra Capital Management LLC now owns 353,460 shares of the semiconductor company's stock worth $47,325,000 after buying an additional 102,497 shares during the period. 84.61% of the stock is currently owned by hedge funds and other 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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