Lam Research (NASDAQ:LRCX) Stock Price Up 4.2% - Still a Buy?

Key Points

• Lam Research's stock price rose by 4.2% to close at $132.20, with trading volume significantly above average.
• Recent analyst updates have set a consensus price target of $109.39 for the stock, with most analysts rating it as a "buy."
• The company increased its quarterly dividend from $0.23 to $0.26 per share, reflecting a commitment to returning value to shareholders.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) rose 4.2% during trading on Monday . The company traded as high as $132.63 and last traded at $132.20. Approximately 13,371,731 shares traded hands during mid-day trading, an increase of 12% from the average daily volume of 11,960,686 shares. The stock had previously closed at $126.92.

Analysts Set New Price Targets

LRCX has been the subject of a number of recent research reports. Needham & Company LLC upped their target price on Lam Research from $110.00 to $115.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Barclays set a $83.00 price objective on Lam Research and gave the stock an "equal weight" rating in a research note on Monday, July 28th. TD Cowen increased their price objective on Lam Research from $100.00 to $125.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Citigroup raised their target price on Lam Research from $113.00 to $120.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Finally, B. Riley reiterated a "buy" rating and issued a $115.00 price objective (up from $95.00) on shares of Lam Research in a research report on Wednesday, June 18th. Twenty research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $109.39.

Lam Research Stock Up 4.2%

The company has a market capitalization of $166.71 billion, a P/E ratio of 31.78, a PEG ratio of 1.63 and a beta of 1.76. The firm's 50 day moving average price is $103.36 and its two-hundred day moving average price is $88.41. The company has a current ratio of 2.21, a quick ratio of 1.55 and a debt-to-equity ratio of 0.38.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The semiconductor company reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.12. The company had revenue of $5.17 billion during the quarter, compared to analysts' expectations of $4.99 billion. Lam Research had a net margin of 29.07% and a return on equity of 58.17%. The business's quarterly revenue was up 33.6% on a year-over-year basis. During the same period last year, the business earned $1.03 EPS. Lam Research has set its Q1 2026 guidance at 1.100-1.300 EPS. Equities research analysts forecast that Lam Research Corporation will post 3.71 EPS for the current year.

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, September 24th will be paid a dividend of $0.26 per share. The ex-dividend date is Wednesday, September 24th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. This is an increase from Lam Research's previous quarterly dividend of $0.23. Lam Research's dividend payout ratio (DPR) is currently 22.12%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in shares of Lam Research by 1.1% during the 2nd quarter. Vanguard Group Inc. now owns 130,609,265 shares of the semiconductor company's stock worth $12,713,506,000 after acquiring an additional 1,457,163 shares during the last quarter. State Street Corp increased its holdings in shares of Lam Research by 1.1% during the 2nd quarter. State Street Corp now owns 59,551,547 shares of the semiconductor company's stock worth $5,810,172,000 after acquiring an additional 629,666 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Lam Research by 14.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company's stock worth $3,954,188,000 after acquiring an additional 5,102,589 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Lam Research by 3.5% during the 2nd quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company's stock worth $3,280,484,000 after acquiring an additional 1,135,405 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Lam Research during the 2nd quarter worth approximately $1,894,585,000. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.