Lam Research (NASDAQ:LRCX) Stock Jumps 3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) rose 3% during trading on Tuesday. The company traded as high as $328.32 and last traded at $323.86. Approximately 7,834,724 shares were traded during mid-day 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 Analysts Forecast Growth

LRCX has been the subject of a number of research reports. Morgan Stanley reduced their price target on shares of Lam Research from $404.00 to $367.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Wells Fargo & Company reissued 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. TD Cowen restated a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Raymond James Financial set a $425.00 price objective on Lam Research in a research note on Wednesday, June 10th. Finally, Stifel Nicolaus increased their price objective on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $361.81.

Lam Research Stock Performance

The stock has a market cap of $405.28 billion, a PE ratio of 56.23, a price-to-earnings-growth ratio of 1.25 and a beta of 1.85. The stock has a fifty day moving average of $304.63 and a 200-day moving average of $299.46. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The firm had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. During the same period in the prior year, the business earned $1.33 EPS. The firm’s revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, equities analysts forecast that Lam Research Corporation will post 9.32 EPS for the current year.

Lam Research Increases Dividend

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

Insider Buying and Selling

In related news, insider Ava Harter sold 5,000 shares of Lam Research 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 transaction, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. This trade represents a 10.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Talwalkar sold 18,282 shares of the business’s stock in a transaction on Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. This represents a 17.34% 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 32,839 shares of company stock valued at $10,644,740 over the last three months. 0.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its holdings in Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock worth $4,872,426,000 after acquiring an additional 584,489 shares during the period. Rokos Capital Management LLP raised its stake in shares of Lam Research by 42.0% during the first quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock valued at $55,532,000 after purchasing an additional 76,840 shares during the period. Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Lam Research during the first quarter worth $59,973,000. Y Intercept Hong Kong Ltd acquired a new position in shares of Lam Research during the first quarter worth $26,489,000. Finally, Krilogy Financial LLC boosted its stake in shares of Lam Research by 19.5% in the first 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 period. 84.61% of the stock is owned by hedge funds and other institutional investors.

Lam Research Company Profile

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.