Lam Research (NASDAQ:LRCX) Stock Price Down 3.4% - What's Next?

Key Points

• Lam Research shares fell 3.4% to $333.89 in midday trading, with volume below the average session level. Despite the pullback, analysts maintain a “Moderate Buy” consensus and an average price target of $364.59.
• The company reported stronger-than-expected quarterly results, with EPS of $1.82 versus the $1.69 consensus and revenue of $6.72 billion, up 30% year over year.
• Lam Research raised its quarterly dividend from $0.26 to $0.33 per share, implying a $1.32 annualized payout and a 0.4% yield. Insiders have sold $10.6 million of stock over the past 90 days, while institutional investors own 84.61% of shares.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 3.4% during mid-day trading on Tuesday. The company traded as low as $330.85 and last traded at $333.89. 7,629,486 shares changed hands during trading, a decline of 29% from the average session volume of 10,758,769 shares. The stock had previously closed at $345.80.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Evercore reiterated an "outperform" rating and issued a $355.00 target price on shares of Lam Research in a research note on Monday, July 20th. Mizuho cut their price target on shares of Lam Research from $370.00 to $365.00 and set an "outperform" rating on the stock in a report on Tuesday, August 25th. B. Riley Financial lifted their price objective on shares of Lam Research from $350.00 to $390.00 and gave the company a "buy" rating in a report on Thursday, October 1st. Citigroup reissued a "buy" rating and issued a $450.00 price objective (up from $315.00) on shares of Lam Research in a research report on Wednesday, June 17th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $400.00 price target (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. One 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 stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $364.59.

Lam Research Stock Down 3.4%

The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The firm has a market cap of $417.84 billion, a PE ratio of 57.97, a P/E/G ratio of 1.38 and a beta of 1.85. The business's 50-day simple moving average is $307.19 and its 200 day simple moving average is $303.68.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.13. The firm had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company's revenue was up 30.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts expect 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. Shareholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 0.4%. This is a boost from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date is Wednesday, September 23rd. Lam Research's payout ratio is presently 22.92%.

Insiders Place Their Bets

In other news, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the transaction, the insider owned 42,462 shares of the company's stock, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction that occurred 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 position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 32,839 shares of company stock worth $10,644,740. 0.31% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lam Research

Large investors have recently made changes to their positions in the business. Paladin Partners LLC acquired a new position in Lam Research during the 2nd quarter valued at about $26,000. Bravera Wealth purchased a new stake in shares of Lam Research during the second quarter worth about $46,000. Cedar Mountain Advisors LLC increased its holdings in shares of Lam Research by 242.9% during 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. Comprehensive Financial Planning Inc. PA acquired a new position in shares of Lam Research during the second quarter valued at about $52,000. Finally, Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research in the 1st quarter valued at approximately $26,000. 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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