Lam Research (NASDAQ:LRCX) Trading Up 3.5% - Still a Buy?

Key Points

• Lam Research shares rose 3.5% to $343.84 in mid-day trading, bringing the stock close to its $358.47 consensus analyst price target.
• Analysts maintain a broadly positive outlook, with a consensus rating of “Moderate Buy”; price targets range from $280 to $400, including TD Cowen’s $400 target.
• The company reported strong quarterly results, with EPS of $1.82 beating estimates and revenue rising 30% year over year to $6.72 billion. However, insiders sold about $27.6 million of stock over the past three months.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price was up 3.5% during mid-day trading on Monday . The company traded as high as $345.28 and last traded at $343.84. 7,777,337 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 11,254,208 shares. The stock had previously closed at $332.36.

Wall Street Analyst Weigh In

Several research firms have commented on LRCX. New Street Research lifted their price target on Lam Research from $235.00 to $280.00 and gave the company a "neutral" rating in a report on Monday, April 27th. The Goldman Sachs Group reissued a "buy" rating and issued a $290.00 target price on shares of Lam Research in a research report on Thursday, April 23rd. TD Cowen reaffirmed a "buy" rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Berenberg Bank increased their price target on shares of Lam Research from $265.00 to $335.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $320.00 price target on shares of Lam Research in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lam Research has a consensus rating of "Moderate Buy" and a consensus target price of $358.47.

Lam Research Price Performance

The stock has a market cap of $430.25 billion, a PE ratio of 59.69, a price-to-earnings-growth ratio of 1.32 and a beta of 1.84. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company's fifty day moving average is $339.46 and its 200 day moving average is $283.57.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. During the same period in the previous year, the firm earned $1.33 earnings per share. Lam Research's revenue for the quarter was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts anticipate that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research's dividend payout ratio is 18.06%.

Insider Activity at Lam Research

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. 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, 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 value of $19,118,600.00. Following the transaction, the director owned 199,205 shares in the company, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 80,441 shares of company stock worth $27,614,296. Corporate insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently modified their holdings of the stock. Bayban acquired a new position in shares of Lam Research during the fourth quarter worth $26,000. Vermillion Wealth Management Inc. acquired a new stake in Lam Research during the 1st quarter valued at $26,000. Cedar Mountain Advisors LLC grew its holdings in Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 85 shares in the last quarter. Paladin Partners LLC purchased a new stake in Lam Research during the 2nd quarter worth $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Lam Research during the 4th quarter worth $27,000. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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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