Lam Research (NASDAQ:LRCX) Stock Price Up 2.6% - Here's What Happened

Key Points

• Lam Research shares rose 2.6% to $315.21, with trading volume below the average session level. The company has a market capitalization of approximately $394.4 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $361.81; recent targets range from $350 to $500.
• Lam Research exceeded quarterly expectations, reporting $1.82 in EPS and $6.72 billion in revenue, while revenue grew 30% year over year. The company also raised its quarterly dividend to $0.33 per share.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares shot up 2.6% on Friday. The stock traded as high as $317.13 and last traded at $315.21. Approximately 6,947,916 shares changed hands during trading, a decline of 36% from the average session volume of 10,852,460 shares. The stock had previously closed at $307.16.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on LRCX shares. Oppenheimer reissued 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. Cantor Fitzgerald set a $500.00 target price on Lam Research and gave the stock an "overweight" rating in a research report on Monday, June 29th. Raymond James Financial set a $425.00 price objective on shares of Lam Research in a research note on Wednesday, June 10th. Weiss Ratings cut Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, September 4th. Finally, B. Riley Financial lowered their price target on shares of Lam Research from $385.00 to $350.00 and set a "buy" rating for the company 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 issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $361.81.

Lam Research Trading Up 2.6%

The firm's 50 day simple moving average is $304.44 and its 200-day simple moving average is $298.03. 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 has a market capitalization of $394.43 billion, a PE ratio of 54.72, a P/E/G ratio of 1.23 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data 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 return on equity of 67.60% and a net margin of 31.27%.The company had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same period last year, the company posted $1.33 earnings per share. The firm's 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. As a group, equities research analysts anticipate that Lam Research Corporation will post 9.32 EPS for the current year.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be given a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 0.4%. This is a positive change from Lam Research's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 23rd. Lam Research's dividend payout ratio is 18.06%.

Insider Activity

In other news, Director Abhijit Talwalkar sold 18,282 shares of the business's stock in a transaction on Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares of the company's stock, valued at approximately $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the firm'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 approximately $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 32,839 shares of company stock worth $10,644,740 over the last 90 days. Company insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

Hedge funds and other institutional investors have recently modified their holdings of the business. World Equity Group Inc. lifted its stake in Lam Research by 0.5% during the second 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 in the last quarter. Tenzing Financial LLC grew its stake in shares of Lam Research by 3.5% in the second 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 in the last quarter. Advus Financial Partners LLC raised its holdings in shares of Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company's stock valued at $1,550,000 after buying an additional 34 shares during the period. Paragon Private Wealth Management LLC raised its holdings 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. lifted its stake in Lam Research by 3.6% during the 2nd quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company's stock worth $455,000 after acquiring an additional 36 shares in the last quarter. 84.61% of the stock is owned by hedge funds and other institutional investors.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.

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