Lam Research (NASDAQ:LRCX) Shares Up 1.4% - Still a Buy?

Key Points

• Lam Research shares rose 1.4% to $328.51, while trading volume was about 30% below the average session volume.
• Analysts maintain a generally bullish outlook, with a consensus “Moderate Buy” rating and an average price target of $361.81, implying upside from the trading price.
• The company beat quarterly earnings and revenue estimates, posting $1.82 in EPS and $6.72 billion in revenue, while increasing its quarterly dividend from $0.26 to $0.33 per share.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) were up 1.4% during trading on Wednesday. The stock traded as high as $330.50 and last traded at $328.51. Approximately 7,609,774 shares traded hands during trading, a decline of 30% from the average session volume of 10,828,213 shares. The stock had previously closed at $323.86.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on LRCX shares. Berenberg Bank set a $420.00 target price on shares of Lam Research in a report on Wednesday, September 9th. Evercore reaffirmed an "outperform" rating and issued a $355.00 price target on shares of Lam Research in a report on Monday, July 20th. Morgan Stanley dropped their price target on Lam Research from $404.00 to $367.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Rothschild & Co Redburn upped their price objective on Lam Research from $305.00 to $420.00 and gave the company a "buy" rating in a research report on Wednesday, June 17th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $320.00 target price on shares of Lam Research in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $361.81.

Lam Research Trading Up 1.4%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The company's fifty day simple moving average is $304.67 and its 200-day simple moving average is $300.20. The company has a market capitalization of $411.11 billion, a P/E ratio of 57.03, a PEG ratio of 1.25 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating 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 business had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the previous year, the business posted $1.33 EPS. The company's quarterly revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Research analysts predict that Lam Research Corporation will post 9.32 earnings per share for the current year.

Lam Research Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be paid a $0.33 dividend. This is a boost from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date is Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a yield of 0.4%. Lam Research's dividend payout ratio (DPR) is 22.92%.

Insiders Place Their Bets

In other news, Director Bethany Mayer sold 9,557 shares of the business's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the sale, the director directly owned 20,995 shares of the company's stock, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider owned 42,462 shares of the company's stock, valued at $12,843,056.52. This trade represents a 10.53% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 32,839 shares of company stock valued at $10,644,740. Insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of LRCX. World Equity Group Inc. boosted its holdings in shares of Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company's stock worth $2,416,000 after purchasing an additional 29 shares during the last quarter. Tenzing Financial LLC raised its holdings in shares of Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company's stock valued at $441,000 after buying an additional 34 shares during the period. Advus Financial Partners LLC raised its stake in shares of Lam Research by 1.0% in the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company's stock valued at $1,550,000 after acquiring an additional 34 shares in the last quarter. Paragon Private Wealth Management LLC boosted its stake in shares of Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company's stock valued at $1,178,000 after buying an additional 35 shares during the period. Finally, Gibraltar Capital Management Inc. grew its position in shares of Lam Research by 3.6% during the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company's stock worth $455,000 after buying an additional 36 shares in the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company's portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.

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