Lam Research (NASDAQ:LRCX) Trading 5.3% Higher - Still a Buy?

Key Points

• Lam Research shares rose 5.3% on Monday, trading as high as $409.75 on volume well above average. The move came amid continued investor interest in the semiconductor equipment maker.
• Several analysts remain bullish: JPMorgan, Bank of America, Jefferies, and Goldman Sachs either raised targets or reiterated positive ratings. Overall, the stock has a Moderate Buy consensus with an average price target of $329.59.
• The company posted strong quarterly results, beating EPS and revenue estimates, and revenue jumped 23.8% year over year. Lam also announced a $0.26 quarterly dividend, though insider selling and a high valuation may be points of caution for investors.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shot up 5.3% on Monday . The company traded as high as $409.75 and last traded at $409.54. Approximately 14,099,959 shares changed hands during mid-day trading, an increase of 28% from the average session volume of 11,031,479 shares. The stock had previously closed at $389.04.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on LRCX. JPMorgan Chase & Co. upped their target price on shares of Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a report on Thursday, April 23rd. Bank of America upped their price objective on shares of Lam Research from $285.00 to $330.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Jefferies Financial Group increased their price objective on shares of Lam Research from $285.00 to $315.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. The Goldman Sachs Group restated a "buy" rating and set a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Finally, Erste Group Bank lowered Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $329.59.

Lam Research Stock Up 5.3%

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The company has a market capitalization of $512.16 billion, a PE ratio of 77.27, a P/E/G ratio of 3.21 and a beta of 1.85. The business's 50 day simple moving average is $301.75 and its 200 day simple moving average is $242.18.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. During the same quarter in the previous year, the company earned $1.04 EPS. The business's revenue for the quarter 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, analysts anticipate that Lam Research Corporation will post 5.7 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The business 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 yield of 0.3%. The ex-dividend date is Wednesday, June 17th. Lam Research's payout ratio is 19.62%.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the business's 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 sale, the insider owned 53,205 shares in the company, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Eric Brandt sold 54,500 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the sale, the director owned 199,205 shares in the company, valued at $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 86,339 shares of company stock valued at $27,680,267 over the last 90 days. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. 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 valued at $26,000 after acquiring an additional 85 shares in the last quarter. Vermillion Wealth Management Inc. purchased a new stake in shares of Lam Research in the 1st quarter valued at approximately $26,000. PMV Capital Advisers LLC purchased a new stake in shares of Lam Research in the 4th quarter valued at approximately $25,000. Bayban purchased a new stake in shares of Lam Research during the 4th quarter worth $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in shares of Lam Research during the 4th quarter worth $27,000. 84.61% of the stock is 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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