Lam Research (NASDAQ:LRCX) Shares Gap Up Following Dividend Announcement

Shares of Lam Research Corporation (NASDAQ:LRCX) gapped up before the market opened on Friday after the company announced a dividend. The stock had previously closed at $185.20, but opened at $208.65. Lam Research shares last traded at $202.40, with a volume of 2,622,856 shares trading hands.

The newly announced dividend which will be paid on Wednesday, January 6th. Shareholders of record on Wednesday, December 2nd will be given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Wednesday, December 2nd. Lam Research’s payout ratio is 19.67%.

Analyst Ratings Changes

LRCX has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $375.00 price target on shares of Lam Research in a research report on Monday, October 19th. Morgan Stanley set a $339.00 price objective on shares of Lam Research and gave the stock an “overweight” rating in a research report on Thursday, October 22nd. Berenberg Bank set a $420.00 target price on shares of Lam Research in a research note on Wednesday, September 9th. Stifel Nicolaus lifted their target price on shares of Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, Wall Street Zen raised shares of Lam Research from a “hold” rating to a “buy” rating in a research report on Saturday, October 24th. Twenty-six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average target price of $360.23.

Lam Research Trading Up 8.7%

The firm has a fifty day moving average of $286.73 and a 200 day moving average of $283.78. The firm has a market capitalization of $251.52 billion, a PE ratio of 29.83, a P/E/G ratio of 0.82 and a beta of 1.97. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.86 and a current ratio of 2.48.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same quarter in the prior year, the business earned $1.26 EPS. Lam Research’s quarterly revenue was up 54.4% compared to the same quarter last year. Equities research analysts expect that Lam Research Corporation will post 9.59 EPS for the current year.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Lam authorized a $25 billion share repurchase program, enough to buy back up to 9% of its shares. The large authorization is a potential source of shareholder support and signals management’s confidence in the company’s value. Lam Research buyback and dividend announcement
• Positive Sentiment: The board also declared a quarterly dividend of $0.33 per share—$1.32 annualized, or about a 0.7% yield—adding to the shareholder-return news. Repurchase authorization and dividend details
• Neutral Sentiment: The buyback announcement comes as Lam joins an AI-related market rebound, though the broader semiconductor sector’s outlook remains unsettled. Lam Research buyback and AI rebound
• Negative Sentiment: Recent pressure on chip stocks reflects competing concerns about regulation, investor profit-taking and a possible slowdown in capital spending. Uncertainty over AI-related investment could weigh on demand for Lam’s semiconductor manufacturing equipment. Chip-sector selloff and its potential causes

Lam Research declared that its board has approved a share repurchase program on Thursday, November 5th that permits the company to buy back $25 billion in shares. This buyback authorization permits the semiconductor company to buy up to 9% of its shares through open market purchases. Share buyback programs are often an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Lam Research

In other news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction 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 completion of the transaction, the insider directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 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. 0.31% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Tortoise Investment Management LLC acquired a new position in shares of Lam Research in the 3rd quarter valued at approximately $560,000. PBU The Pension Fund of Early Childhood & Youth Educators boosted its stake in shares of Lam Research by 3.5% during the 3rd quarter. PBU The Pension Fund of Early Childhood & Youth Educators now owns 137,315 shares of the semiconductor company’s stock valued at $45,109,000 after buying an additional 4,648 shares during the last quarter. Welch Financial Planning LLC grew its position in shares of Lam Research by 10.3% during the third quarter. Welch Financial Planning LLC now owns 738 shares of the semiconductor company’s stock worth $242,000 after buying an additional 69 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. grew its position in shares of Lam Research by 312.7% during the third quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. now owns 1,626 shares of the semiconductor company’s stock worth $534,000 after buying an additional 1,232 shares in the last quarter. Finally, CENTRAL TRUST Co grew its position in shares of Lam Research by 0.3% during the third quarter. CENTRAL TRUST Co now owns 18,735 shares of the semiconductor company’s stock worth $6,155,000 after buying an additional 65 shares in the last quarter. 84.61% of the stock is owned by hedge funds and other institutional investors.

Lam Research Company Profile

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits.

The company’s wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations.

Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.