Lam Research (NASDAQ:LRCX) Trading 1% Higher Following Dividend Announcement

Key Points

• Lam Research shares rose about 1% after the company announced a quarterly dividend of $0.26 per share, payable July 8 to shareholders of record on June 17. The dividend implies an annualized yield of 0.3% and a payout ratio of 19.62%.
• Recent earnings were stronger than expected, with Lam Research posting $1.47 EPS on revenue of $5.84 billion, both above analyst estimates. Revenue jumped 23.8% year over year, and the company guided Q4 2026 EPS to $1.50–$1.80.
• Analyst sentiment remains constructive, with 27 analysts rating the stock a Buy and seven rating it Hold. The consensus price target is $293.46, while some firms, including Oppenheimer and Sanford C. Bernstein, have targets as high as $330 to $340.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price traded up 1% during trading on Friday after the company announced a dividend. The stock traded as high as $309.98 and last traded at $305.35. 7,839,184 shares traded hands during trading, a decline of 28% from the average session volume of 10,901,773 shares. The stock had previously closed at $302.24.The newly announced dividend which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be issued a dividend of $0.26 per share. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.3%. Lam Research's payout ratio is currently 19.62%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Summit Insights raised shares of Lam Research from a "hold" rating to a "buy" rating in a report on Thursday, January 29th. Oppenheimer reaffirmed an "outperform" rating and set a $330.00 price target on shares of Lam Research in a report on Thursday, April 23rd. UBS Group set a $300.00 price target on shares of Lam Research in a report on Thursday, January 29th. Citic Securities boosted their price target on Lam Research from $165.00 to $275.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Finally, Argus boosted their price target on Lam Research from $175.00 to $280.00 in a report on Tuesday, February 3rd. Twenty-seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Lam Research has an average rating of "Moderate Buy" and a consensus price target of $293.46.

Lam Research Trading Up 1.0%

The stock has a fifty day moving average of $252.34 and a 200 day moving average of $214.71. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The company has a market capitalization of $381.86 billion, a PE ratio of 57.61, a PEG ratio of 2.42 and a beta of 1.81.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company had revenue of $5.84 billion for the quarter, compared to analysts' expectations of $5.70 billion. During the same period in the previous year, the firm earned $1.04 EPS. The firm's revenue was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, sell-side analysts predict that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam Research is expanding its AI packaging capabilities with a new research lab in Salzburg, Austria, focused on panel-level chip packaging, higher chip density, and lower packaging costs as AI semiconductor demand grows.
• Positive Sentiment: Reuters reported that CEO Tim Archer said Lam is adding sensing and AI features to its chipmaking tools while planning expanded operations in Arizona and California, reinforcing its exposure to AI-driven semiconductor spending.
• Positive Sentiment: Sanford C. Bernstein raised its price target on Lam Research to $340 from $325 and maintained an outperform rating, suggesting more upside from current levels.
• Positive Sentiment: The company declared a quarterly dividend of $0.26 per share, which can support investor confidence, even though the yield remains modest.
• Positive Sentiment: Several articles highlighted Lam Research’s strong post-earnings performance, with the stock up sharply since its last report as investors continue to reward better-than-expected results and strong guidance.
• Neutral Sentiment: Technical coverage noted that the shares recently crossed above the 20-day moving average, a sign of short-term bullish momentum but not a standalone fundamental catalyst.

Insider Transactions at Lam Research

In other news, SVP Neil J. Fernandes sold 18,170 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the sale, the senior vice president directly owned 66,129 shares of the company's stock, valued at $16,872,153.06. This represents a 21.55% 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, CFO Douglas R. Bettinger sold 50,057 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the sale, the chief financial officer directly owned 1,081,705 shares in the company, valued at $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. Insiders have sold 120,066 shares of company stock valued at $27,953,242 in the last ninety days. Corporate insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

Hedge funds have recently modified their holdings of the company. Norges Bank purchased a new stake in Lam Research during the 4th quarter valued at $3,645,427,000. Price T Rowe Associates Inc. MD raised its holdings in Lam Research by 352.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock valued at $2,344,347,000 after buying an additional 10,666,540 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in Lam Research by 781.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company's stock valued at $1,518,542,000 after buying an additional 10,053,978 shares during the period. Franklin Resources Inc. raised its holdings in Lam Research by 57.0% during the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company's stock valued at $1,730,724,000 after buying an additional 3,671,073 shares during the period. Finally, Corient Private Wealth LLC raised its holdings in Lam Research by 235.5% during the 4th quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock valued at $890,040,000 after buying an additional 3,649,553 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

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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