Lam Research (NASDAQ:LRCX) Shares Up 8.4% - Should You Buy?

Key Points

• Lam Research shares jumped 8.4% on heavy trading, closing near $411 after reaching an intraday high of $414.98, well above the prior close of $379.09.
• Analyst sentiment remains constructive, with several firms raising price targets and the stock carrying a “Moderate Buy” consensus from MarketBeat data, including 28 Buy ratings and six Hold ratings.
• The company posted strong quarterly results with EPS and revenue both beating estimates, while also announcing a quarterly dividend of $0.26 per share and maintaining solid profitability and balance-sheet metrics.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shot up 8.4% during trading on Monday . The stock traded as high as $414.98 and last traded at $410.91. Approximately 13,696,259 shares were traded during mid-day trading, an increase of 22% from the average session volume of 11,199,820 shares. The stock had previously closed at $379.09.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on LRCX shares. Barclays restated an "overweight" rating and set a $335.00 price target (up from $275.00) on shares of Lam Research in a report on Thursday, June 11th. UBS Group reissued a "buy" rating and set a $375.00 target price (up from $310.00) on shares of Lam Research in a research report on Tuesday, June 9th. Wall Street Zen downgraded Lam Research from a "buy" rating to a "hold" rating in a research note on Sunday, May 10th. Rothschild & Co Redburn upped their target price on Lam Research from $305.00 to $420.00 and gave the company a "buy" rating in a report on Wednesday, June 17th. Finally, Seaport Research Partners started coverage on Lam Research in a report on Monday, May 4th. They issued a "buy" rating and a $300.00 target price for the company. Twenty-eight investment analysts have rated the stock with a Buy rating and six 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 target price of $342.49.

Lam Research Stock Performance

The company has a market cap of $513.87 billion, a P/E ratio of 77.53, a price-to-earnings-growth ratio of 3.14 and a beta of 1.85. The company's 50-day moving average is $313.90 and its two-hundred day moving average is $250.20. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $5.84 billion during the quarter, compared to the consensus estimate 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 last year, the company posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities analysts predict that Lam Research Corporation will post 5.68 EPS for the current year.

Lam Research Announces Dividend

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

Insider Buying and Selling at Lam Research

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the sale, the director directly owned 199,205 shares in the company, valued at $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the transaction, the insider owned 53,205 shares of the company's stock, valued at $13,762,005.30. The trade was a 10.15% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 86,339 shares of company stock valued at $27,680,267. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently added to or reduced their stakes in the business. Sapient Capital LLC increased its stake in shares of Lam Research by 154.9% in the first quarter. Sapient Capital LLC now owns 6,586 shares of the semiconductor company's stock worth $1,413,000 after purchasing an additional 4,002 shares in the last quarter. Militia Capital Management LLC purchased a new stake in shares of Lam Research during the 1st quarter valued at approximately $218,000. Rathbones Group PLC boosted its holdings in Lam Research by 1,013.2% in the 1st quarter. Rathbones Group PLC now owns 73,112 shares of the semiconductor company's stock worth $15,621,000 after buying an additional 66,544 shares during the period. Wealthquest Corp boosted its holdings in Lam Research by 5.3% in the 1st quarter. Wealthquest Corp now owns 4,041 shares of the semiconductor company's stock worth $863,000 after buying an additional 205 shares during the period. Finally, Parallel Advisors LLC grew its stake in Lam Research by 7.6% in the 1st quarter. Parallel Advisors LLC now owns 20,591 shares of the semiconductor company's stock valued at $4,400,000 after buying an additional 1,461 shares in the last quarter. 84.61% of the stock is owned by hedge funds and other institutional investors.

Lam Research Company Profile

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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