Lam Research (NASDAQ:LRCX) Trading Up 5.5% – Time to Buy?

Lam Research Corporation (NASDAQ:LRCX) was up 5.5% during mid-day trading on Tuesday . The company traded as high as $438.50 and last traded at $433.33. Approximately 16,817,686 shares were traded during trading, an increase of 49% from the average daily volume of 11,273,907 shares. The stock had previously closed at $410.91.

Key Stories Impacting Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Lam Research is benefiting from a broad rally in chip-equipment names as investors bet that AI infrastructure spending will keep boosting demand for wafer-fab tools.
• Positive Sentiment: Reports that Samsung’s 1.4nm process development remains on track are lifting sentiment for suppliers like Lam Research that provide etch and deposition equipment for leading-edge chips.
• Positive Sentiment: Analyst enthusiasm remains strong, with recent target increases from firms including Bank of America, Citi, Wells Fargo, Cantor Fitzgerald, and Susquehanna reinforcing expectations for more upside.
• Positive Sentiment: Lam Research was also added to the Russell Top 50 Index, which could increase institutional ownership and boost the stock’s visibility. Lam Research (LRCX) Joins The Russell Top 50 Index As Its Market Profile Grows
• Neutral Sentiment: Recent coverage also highlighted Lam Research’s strong fundamentals, including record quarterly revenue and earnings and guidance pointing to continued AI-related demand. Lam Research shares jump as chip-equipment rally builds on AI demand and Samsung process news
• Neutral Sentiment: Erste Group nudged up its earnings estimates for Lam Research, signaling slightly better profit expectations, though it kept a Hold rating.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Cantor Fitzgerald set a $500.00 price objective on Lam Research and gave the company an “overweight” rating in a report on Monday. Sanford C. Bernstein boosted their target price on Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. upped their price target on Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a report on Thursday, April 23rd. The Goldman Sachs Group reiterated a “buy” rating and issued a $290.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Finally, Bank of America boosted their price objective on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Twenty-eight research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $345.39.

Lam Research Stock Up 5.5%

The business has a 50 day moving average of $316.90 and a 200-day moving average of $251.92. The stock has a market cap of $541.91 billion, a PE ratio of 81.76, a P/E/G ratio of 3.14 and a beta of 1.85. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm’s revenue was up 23.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities research analysts predict that Lam Research Corporation will post 5.68 EPS for the current fiscal year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a yield of 0.2%. Lam Research’s dividend payout ratio is presently 19.62%.

Insider Activity at Lam Research

In other news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the sale, the senior vice president directly owned 58,470 shares of the company’s stock, valued at $18,102,312. This trade represents a 11.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares in the company, valued at $69,881,114. This represents a 21.48% 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. Insiders sold a total of 86,339 shares of company stock worth $27,680,267 over the last 90 days. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Fideuram Asset Management Ireland dac acquired a new position in shares of Lam Research in the fourth quarter worth $10,035,000. Generali Investments Management Co LLC boosted its stake in shares of Lam Research by 62.0% during the fourth quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company’s stock valued at $6,209,000 after acquiring an additional 13,878 shares during the last quarter. Krilogy Financial LLC increased its position in Lam Research by 19.5% during the 1st quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company’s stock worth $6,006,000 after purchasing an additional 4,584 shares in the last quarter. Whalen Wealth Management Inc. purchased a new stake in Lam Research during the 4th quarter worth about $1,423,000. Finally, Cornerstone Wealth Group LLC raised its stake in Lam Research by 648.4% in the 4th quarter. Cornerstone Wealth Group LLC now owns 32,011 shares of the semiconductor company’s stock valued at $5,480,000 after purchasing an additional 27,734 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

About Lam Research

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.