Lam Research (NASDAQ:LRCX) Stock Price Up 3% - Time to Buy?

Key Points

• Lam Research shares rose 3% to $323.86, while trading volume was below average. The stock trades above its 50-day and 200-day moving averages and has a market capitalization of approximately $405 billion.
• Analysts remain broadly bullish, with 26 Buy, one Strong Buy, and five Hold ratings; the average price target is $361.81, implying further upside from the trading price.
• The company reported quarterly earnings and revenue above expectations, with revenue up 30% year over year, and raised its quarterly dividend to $0.33 from $0.26. However, insiders sold shares worth approximately $10.6 million over the past 90 days.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares were up 3% during mid-day trading on Tuesday. The stock traded as high as $328.32 and last traded at $323.86. 7,834,724 shares traded hands during trading, a decline of 28% from the average daily volume of 10,843,605 shares. The stock had previously closed at $314.47.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. Citigroup restated a "buy" rating and set a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Evercore reaffirmed an "outperform" rating and issued a $355.00 price target on shares of Lam Research in a report on Monday, July 20th. Wells Fargo & Company restated an "overweight" rating and issued a $350.00 target price (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Finally, Berenberg Bank set a $420.00 price target on shares of Lam Research in a research report on Wednesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Lam Research has an average rating of "Moderate Buy" and an average price target of $361.81.

Lam Research Stock Up 3.0%

The business's 50 day moving average price is $304.63 and its 200-day moving average price is $299.46. 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 firm has a market capitalization of $405.28 billion, a PE ratio of 56.23, a P/E/G ratio of 1.25 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share 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 firm had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. During the same quarter last year, the firm earned $1.33 EPS. The firm'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, equities research analysts forecast that Lam Research Corporation will post 9.32 earnings per share for the current year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. The ex-dividend date of this dividend is Wednesday, September 23rd. This is a positive change from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a dividend yield of 0.4%. Lam Research's payout ratio is 22.92%.

Insider Buying and Selling

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of the firm's stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the transaction, the director owned 20,995 shares of the company's stock, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Abhijit Talwalkar sold 18,282 shares of the stock in a transaction on Monday, July 13th. The shares were 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 owned 87,142 shares in the company, valued at approximately $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. 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. Insiders have sold a total of 32,839 shares of company stock valued at $10,644,740 in the last ninety days. Company insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp boosted its position in shares of Lam Research by 2.6% during the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company's stock worth $26,320,468,000 after acquiring an additional 1,545,830 shares in the last quarter. Invesco Ltd. lifted its stake in Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after purchasing an additional 1,638,406 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Lam Research by 17.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 13,349,470 shares of the semiconductor company's stock worth $2,285,162,000 after purchasing an additional 2,008,605 shares during the last quarter. Bank of America Corp DE boosted its holdings in Lam Research by 5.5% in the second quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company's stock valued at $4,872,426,000 after purchasing an additional 584,489 shares in the last quarter. Finally, Van ECK Associates Corp increased its stake in Lam Research by 411.8% in the second quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company's stock valued at $4,805,368,000 after purchasing an additional 8,922,854 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

About Lam Research

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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