Lam Research (NASDAQ:LRCX) Shares Down 3.4% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) shares traded down 3.4% during trading on Friday. The stock traded as low as $218.90 and last traded at $225.92. Approximately 10,978,354 shares were traded during trading, an increase of 0% from the average daily volume of 10,954,359 shares. The stock had previously closed at $233.78.

Key Headlines Impacting Lam Research

These are some of the LRCX headlines that stood out recently:

• Positive Sentiment: Lam’s board authorized a share-repurchase program of up to $25 billion and reaffirmed its quarterly dividend at $0.33 per share, providing a potential source of shareholder returns. Article: Lam Research Just Gave Investors Something To Think About
• Positive Sentiment: Bernstein analyst Stacy Rasgon remains favorable on Lam after its steep recent decline, while Wells Fargo’s move to a neutral view on U.S. AI infrastructure suggests a less negative backdrop for the sector. Article: Lam Research Lost About 34% in a Month. Here’s Why Bernstein’s Rasgon Still Likes It
• Neutral Sentiment: Lam committed $15 million over four years to a LEGO Education STEM initiative. The partnership supports future science and engineering talent, but is unlikely to materially affect near-term results. Article: Lam Research and LEGO Education Partnership

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on LRCX shares. Deutsche Bank reaffirmed a “buy” rating and issued a $375.00 price objective on shares of Lam Research in a research note on Monday, October 19th. Citigroup reiterated a “buy” rating and issued a $435.00 price objective (down from $450.00) on shares of Lam Research in a report on Thursday, October 22nd. Weiss Ratings downgraded shares of Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, September 4th. Jefferies Financial Group set a $335.00 target price on shares of Lam Research and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, Mizuho cut their target price on Lam Research from $365.00 to $360.00 and set an “outperform” rating on the stock in a report on Thursday, October 22nd. Twenty-six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $357.57.

Lam Research Stock Performance

The company has a market cap of $282.21 billion, a P/E ratio of 33.67, a price-to-earnings-growth ratio of 0.87 and a beta of 1.97. The company has a quick ratio of 1.86, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. The stock’s 50-day moving average price is $277.67 and its 200 day moving average price is $283.73.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data 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 net margin of 32.34% and a return on equity of 72.15%. The business had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same period in the previous year, the company earned $1.26 earnings per share. Lam Research’s revenue for the quarter was up 54.4% on a year-over-year basis. As a group, research analysts expect that Lam Research Corporation will post 9.60 EPS for the current fiscal year.

Lam Research Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 6th. Investors of record on Wednesday, December 2nd will be paid a dividend of $0.33 per share. The ex-dividend date is Wednesday, December 2nd. This represents a $1.32 annualized dividend and a yield of 0.6%. Lam Research’s dividend payout ratio is presently 19.67%.

Lam Research announced that its Board of Directors has authorized a stock repurchase plan on Thursday, November 5th that allows the company to repurchase $25 billion in outstanding shares. This buyback authorization allows the semiconductor company to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,573 shares of company stock worth $4,523,606 in the last ninety days. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

A number of institutional investors and hedge funds have recently bought and sold shares of LRCX. Jump Financial LLC boosted its holdings in Lam Research by 5,104.8% in the 3rd quarter. Jump Financial LLC now owns 29,095 shares of the semiconductor company’s stock valued at $9,558,000 after purchasing an additional 28,536 shares during the period. Haverford Trust Co grew its position in Lam Research by 138.3% in the 3rd quarter. Haverford Trust Co now owns 7,478 shares of the semiconductor company’s stock worth $2,457,000 after purchasing an additional 4,340 shares during the last quarter. FLC Capital Advisors grew its position in Lam Research by 2.5% in the 3rd quarter. FLC Capital Advisors now owns 2,079 shares of the semiconductor company’s stock worth $683,000 after purchasing an additional 50 shares during the last quarter. First National Bank of Omaha grew its position in Lam Research by 2.8% in the 3rd quarter. First National Bank of Omaha now owns 4,042 shares of the semiconductor company’s stock worth $1,328,000 after purchasing an additional 112 shares during the last quarter. Finally, EP Wealth Advisors LLC increased its holdings in shares of Lam Research by 153.7% during the 3rd quarter. EP Wealth Advisors LLC now owns 137,828 shares of the semiconductor company’s stock worth $45,278,000 after purchasing an additional 83,508 shares during the period. Institutional investors own 84.61% of the company’s stock.

About Lam Research

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.