Lam Research (NASDAQ:LRCX) Stock Price Up 3.5% on Analyst Upgrade

Key Points

• Lam Research shares rose 3.5% after B. Riley Financial raised its price target from $350 to $390 and maintained a buy rating. The stock reached $341.64, while the analyst consensus remained “Moderate Buy” with an average target of $364.01.
• The company reported strong quarterly results, with earnings per share of $1.82 exceeding estimates of $1.69 and revenue rising 30% year over year to $6.72 billion.
• Lam Research increased its quarterly dividend from $0.26 to $0.33 per share, bringing the annualized dividend to $1.32 and the yield to approximately 0.4%.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) were up 3.5% during mid-day trading on Thursday after B. Riley Financial raised their price target on the stock from $350.00 to $390.00. B. Riley Financial currently has a buy rating on the stock. Lam Research traded as high as $341.64 and last traded at $340.10. Approximately 8,543,648 shares traded hands during trading, a decline of 21% from the average daily volume of 10,807,813 shares. The stock had previously closed at $328.51.

LRCX has been the subject of a number of other research reports. Raymond James Financial set a $425.00 target price on Lam Research in a research report on Wednesday, June 10th. TD Cowen reiterated a "buy" rating and issued a $400.00 price target (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Stifel Nicolaus lifted their price objective on Lam Research from $325.00 to $425.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. UBS Group cut their target price on shares of Lam Research from $435.00 to $425.00 and set a "buy" rating on the stock in a research report on Tuesday, September 1st. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $400.00 target price (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. One 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. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $364.01.

Insider Activity at Lam Research

In other Lam Research news, insider Ava Harter sold 5,000 shares of the firm's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a filing 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 Abhijit Y. Talwalkar sold 18,282 shares of the business's stock in a transaction dated 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 transaction, the director owned 87,142 shares of the company's stock, valued at $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 32,839 shares of company stock worth $10,644,740. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of LRCX. Bank of America Corp DE grew its position in shares of Lam Research by 5.5% during the 2nd 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. Rokos Capital Management LLP grew its position in Lam Research by 42.0% in the first quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company's stock worth $55,532,000 after acquiring an additional 76,840 shares in the last quarter. Aware Super Pty Ltd as trustee of Aware Super bought a new position in Lam Research in the first quarter valued at $59,973,000. Y Intercept Hong Kong Ltd purchased a new position in shares of Lam Research in the 1st quarter worth about $26,489,000. Finally, Krilogy Financial LLC increased its position in shares of Lam Research by 19.5% during the 1st quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company's stock valued at $6,006,000 after purchasing an additional 4,584 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Lam Research Stock Up 3.5%

The company has a market cap of $425.61 billion, a P/E ratio of 59.05, a P/E/G ratio of 1.28 and a beta of 1.85. The stock has a 50-day moving average of $304.85 and a two-hundred day moving average of $301.04. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping analysts' consensus estimates 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 analyst estimates of $6.66 billion. During the same period in the previous year, the business posted $1.33 EPS. The business's quarterly revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, research analysts anticipate that Lam Research Corporation will post 9.32 EPS for the current fiscal year.

Lam Research Increases Dividend

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

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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