Lam Research (NASDAQ:LRCX) Stock Price Up 5.7% - Here's Why

Key Points

• Lam Research shares rose 5.7% on Tuesday, trading as high as $323.98 after closing at $305.35 the prior day. Trading volume was slightly below average.
• Recent analyst updates have been bullish, with several firms raising price targets and maintaining Buy ratings. Overall, Wall Street now has a consensus rating of Moderate Buy with an average target price of $293.46.
• The company reported better-than-expected quarterly results, including EPS of $1.47 versus estimates of $1.36 and revenue of $5.84 billion versus $5.70 billion expected. Lam Research also announced a quarterly dividend of $0.26 per share, payable on July 8.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price rose 5.7% on Tuesday . The stock traded as high as $323.98 and last traded at $322.68. Approximately 9,741,857 shares were traded during mid-day trading, a decline of 11% from the average daily volume of 10,890,879 shares. The stock had previously closed at $305.35.

Wall Street Analyst Weigh In

A number of research analysts have commented on LRCX shares. Argus upped their price target on Lam Research from $175.00 to $280.00 in a research note on Tuesday, February 3rd. Stifel Nicolaus raised their price target on Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Needham & Company LLC restated a "buy" rating and set a $300.00 price target on shares of Lam Research in a research report on Thursday, April 23rd. Citic Securities raised their price target on Lam Research from $165.00 to $275.00 and gave the stock a "buy" rating in a research report on Friday, January 30th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $290.00 price target on shares of Lam Research in a research report 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 stock. Based on data from MarketBeat.com, Lam Research presently has a consensus rating of "Moderate Buy" and an average target price of $293.46.

Lam Research Stock Performance

The stock has a market capitalization of $403.53 billion, a PE ratio of 60.88, a price-to-earnings-growth ratio of 2.53 and a beta of 1.81. The stock has a fifty day moving average of $255.98 and a 200-day moving average of $216.78. 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 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 firm had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.Lam Research's revenue was up 23.8% compared to the same quarter last year. During the same period last year, the business posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities analysts anticipate that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The business also recently announced 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. 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 dividend payout ratio (DPR) is 19.62%.

Insider Activity at Lam Research

In related news, insider Ava Harter sold 6,010 shares of Lam Research 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 completion of the transaction, the insider directly owned 53,205 shares in the company, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total value of $11,214,269.71. Following the completion of the transaction, the chief financial officer owned 1,081,705 shares of the company's stock, valued at approximately $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 120,066 shares of company stock worth $27,953,242. Company insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

A number of hedge funds and other institutional investors have recently bought and sold shares of LRCX. PMV Capital Advisers LLC acquired a new stake in Lam Research in the fourth quarter valued at $25,000. Stance Capital LLC acquired a new stake in Lam Research in the third quarter valued at $26,000. Bayban acquired a new stake in Lam Research in the fourth quarter valued at $26,000. Vermillion Wealth Management Inc. acquired a new stake in Lam Research in the first quarter valued at $26,000. Finally, Cedar Mountain Advisors LLC raised its stake in Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after buying an additional 85 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

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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