Lam Research (NASDAQ:LRCX) Stock Price Up 2.2% - Still a Buy?

Key Points

• Lam Research shares rose 2.2% on Wednesday, trading as high as $337.50 after closing at $326.13, though volume was below average.
• Analysts remain broadly constructive: several firms recently raised price targets, and the stock now carries a Moderate Buy consensus with an average target of $347.75.
• The company continues to show solid fundamentals, with its latest quarter beating estimates on EPS and revenue, while revenue grew 23.8% year over year and the stock pays a modest dividend yield of 0.3%.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price rose 2.2% on Wednesday . The stock traded as high as $337.50 and last traded at $333.15. 7,970,810 shares were traded during mid-day trading, a decline of 30% from the average session volume of 11,418,632 shares. The stock had previously closed at $326.13.

Trending Headlines about Lam Research

Here are the key news stories impacting Lam Research this week:

• Negative Sentiment: Lam Research fell more than the broader market as semiconductor-equipment names weakened on concerns that AI infrastructure spending may cool at the margin, making the stock vulnerable to profit-taking after a big run-up. Lam Research (LRCX) Dips More Than Broader Market: What You Should Know
• Neutral Sentiment: The company was added to the Russell Top 50, which can help institutional exposure over time, but the market also appears to view the AI narrative as already richly valued. Lam Research (LRCX) Joins Russell Top 50 On An AI Narrative That Looks Fully Valued
• Positive Sentiment: Recent analyst commentary remains constructive, and Lam continues to be highlighted as a long-term winner in semicap equipment thanks to its exposure to AI and advanced chip manufacturing. Why Lam Research (LRCX) is a top stock for the long term
• Positive Sentiment: Wall Street coverage also continues to frame Lam Research as a stock with favorable long-term earnings momentum, supporting the view that the recent pullback may be technical rather than fundamental. Why Lam Research (LRCX) is a Top Stock for the Long-Term

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on LRCX shares. Royal Bank Of Canada upped their price objective on Lam Research from $290.00 to $310.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Morgan Stanley upped their target price on shares of Lam Research from $331.00 to $404.00 and gave the stock an "overweight" rating in a research report on Monday. B. Riley Financial boosted their price target on shares of Lam Research from $350.00 to $375.00 and gave the stock a "buy" rating in a research note on Tuesday, May 12th. Stifel Nicolaus set a $500.00 price target on Lam Research in a report on Monday, June 29th. Finally, Mizuho set a $380.00 price objective on Lam Research and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Twenty-eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $347.75.

Lam Research Stock Up 2.2%

The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The stock has a market cap of $416.63 billion, a P/E ratio of 62.86, a P/E/G ratio of 2.09 and a beta of 1.80. The company's 50 day moving average price is $329.35 and its two-hundred day moving average price is $260.54.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.Lam Research's quarterly revenue was up 23.8% on a year-over-year basis. During the same period last year, the business posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, research 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. Investors of record on Wednesday, June 17th will be issued a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Wednesday, June 17th. Lam Research's payout ratio is presently 19.62%.

Insider Buying and Selling

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares in the company, valued at $69,881,114. This represents a 21.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 firm's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the transaction, the insider directly owned 53,205 shares in the company, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 86,339 shares of company stock valued at $27,680,267 over the last three months. 0.31% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently bought and sold shares of the business. PMV Capital Advisers LLC bought a new position in shares of Lam Research in the 4th quarter worth $25,000. Stance Capital LLC bought a new stake in Lam Research during the third quarter valued at about $26,000. Bayban purchased a new position in Lam Research in the fourth quarter valued at about $26,000. Vermillion Wealth Management Inc. purchased a new position in Lam Research in the first quarter valued at about $26,000. Finally, Cedar Mountain Advisors LLC raised its holdings in Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after purchasing an additional 85 shares in the last quarter. Institutional investors own 84.61% of the company's stock.

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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