Lam Research (NASDAQ:LRCX) Stock Price Up 4% After Analyst Upgrade

Key Points

• Lam Research shares rose about 4% after Rothschild & Co Redburn lifted its price target to $420 from $305 and kept a buy rating. The stock traded as high as $401 during the session on heavy volume.
• Analyst sentiment remains broadly bullish, with several firms recently raising targets, including UBS, Wells Fargo, Stifel, and Berenberg. MarketBeat says Lam Research now has a consensus rating of Moderate Buy and an average target price of $333.62.
• The company also reported a strong quarter, beating estimates on both EPS and revenue, with revenue up 23.8% year over year. Lam Research additionally announced a quarterly dividend of $0.26 per share, payable July 8.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price rose 4% during mid-day trading on Thursday after Rothschild & Co Redburn raised their price target on the stock from $305.00 to $420.00. Rothschild & Co Redburn currently has a buy rating on the stock. Lam Research traded as high as $401.00 and last traded at $389.04. Approximately 21,357,061 shares were traded during mid-day trading, an increase of 94% from the average daily volume of 10,986,091 shares. The stock had previously closed at $374.18.

Several other research analysts have also recently issued reports on LRCX. UBS Group restated a "buy" rating and issued a $375.00 price objective (up from $310.00) on shares of Lam Research in a research note on Tuesday, June 9th. Wells Fargo & Company reissued an "overweight" rating and issued a $575.00 price objective (up from $320.00) on shares of Lam Research in a report on Monday, June 1st. Zacks Research downgraded Lam Research from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 6th. Stifel Nicolaus raised their target price on Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Finally, Berenberg Bank boosted their target price on shares of Lam Research from $265.00 to $335.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Twenty-eight research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $333.62.

Insider Activity

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the transaction, the senior vice president directly owned 58,470 shares of the company's stock, valued at $18,102,312. The trade was a 11.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 that occurred on 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 completion of the sale, the insider directly owned 53,205 shares of the company's stock, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 86,339 shares of company stock worth $27,680,267 over the last ninety days. Corporate insiders own 0.31% of the company's stock.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Oppenheimer raised its price target to $400 from $330 and kept an Outperform rating, saying a recent Lam bus tour increased confidence in AI-related WFE growth potential and that the company’s opportunity may be larger than expected. Lam Research Corporation (LRCX)’s WFE Opportunity May Be Bigger Than Expected
• Positive Sentiment: Barclays also reportedly boosted its price target on Lam Research, reinforcing the bullish analyst tone around the stock. Lam Research (LRCX) Receives a Price Target Boost at Barclays. Here is Why
• Positive Sentiment: Citi lifted its target to $450 from $315 on expectations for stronger global WFE spending, suggesting demand for semiconductor equipment could stay robust. Citi lifts PTs on AMAT, LRCX, & KLAC amid booming WFE demand
• Positive Sentiment: Renaissance Investment Management expects positive upward revisions for Lam Research, which can support investor sentiment if estimates continue to rise. Renaissance Investment Management Expects Positive Upward Revision for Lam Research (LRCX)
• Positive Sentiment: Several pieces highlighted Lam Research as a momentum winner and one of the more profitable semiconductor names, which can help keep buyers interested after its strong run. Are You Looking for a Top Momentum Pick? Why Lam Research (LRCX) is a Great Choice
• Neutral Sentiment: Articles comparing Lam Research with Texas Instruments leaned toward TXN on valuation and manufacturing strength, but these were mostly relative-basis opinions rather than direct negative catalysts for LRCX. TXN vs. LRCX: Which Semiconductor Stock Is the Better Buy Right Now?
• Neutral Sentiment: There was also some options activity showing heavy put buying, which may indicate hedging or cautious positioning rather than a clear fundamental shift. Stock Traders Buy High Volume of Put Options on Lam Research NASDAQ: LRCX
• Negative Sentiment: One valuation-focused article argued Lam Research’s premium multiple requires very high growth for years, reminding investors that the stock may be expensive after its sharp move higher. Decoding LRCX Stock's Premium Valuation

Hedge Funds Weigh In On Lam Research

Several institutional investors have recently modified their holdings of LRCX. Brighton Jones LLC boosted its holdings in shares of Lam Research by 1,032.4% in the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company's stock valued at $1,025,000 after acquiring an additional 12,936 shares in the last quarter. Caxton Associates LLP purchased a new stake in Lam Research during the first quarter worth about $239,000. Gabelli Funds LLC acquired a new position in Lam Research during the second quarter worth about $253,000. NewEdge Advisors LLC raised its holdings in Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company's stock worth $9,785,000 after purchasing an additional 2,661 shares during the last quarter. Finally, Osterweis Capital Management Inc. raised its position in Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company's stock worth $77,000 after acquiring an additional 781 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Lam Research Stock Up 4.0%

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 firm's fifty day simple moving average is $295.60 and its 200-day simple moving average is $238.88. The company has a market cap of $486.52 billion, a PE ratio of 73.40, a P/E/G ratio of 3.04 and a beta of 1.85.

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, beating analysts' consensus estimates of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the prior year, the firm earned $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, equities research analysts expect that Lam Research Corporation will post 5.7 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. Stockholders of record on Wednesday, June 17th will be paid a dividend of $0.26 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research's dividend payout ratio (DPR) is currently 19.62%.

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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