Lam Research (NASDAQ:LRCX) Stock Price Up 8.4% – Still a Buy?

Lam Research Corporation (NASDAQ:LRCX)’s share price shot up 8.4% during trading on Monday . The company traded as high as $414.98 and last traded at $410.91. 13,696,259 shares were traded during mid-day trading, an increase of 22% from the average session volume of 11,199,820 shares. The stock had previously closed at $379.09.

Lam Research News Summary

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

• Positive Sentiment: Several recent articles highlight that Lam Research is benefiting from robust demand for wafer-fab equipment tied to AI infrastructure, advanced memory, foundry, and advanced packaging, which could support further revenue and margin expansion. Can AI Demand Help Lam Research Hit New Highs for Gross Margin in Q4?
• Positive Sentiment: Analysts remain broadly constructive on LRCX, with recent target increases as high as $475 to $500 and continued buy/overweight ratings, reinforcing expectations for upside. Is Lam Research (LRCX) a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: The stock’s strong year-to-date rally and record highs in chip-equipment peers suggest momentum is being driven by sector-wide optimism around semiconductor capital spending. Lam Research Stock, Chip Gear Peers Hit Record Highs
• Positive Sentiment: Lam Research was added to the Russell Top 50 Index, which can boost institutional visibility and passive fund demand. Lam Research (LRCX) Joins The Russell Top 50 Index As Its Market Profile Grows
• Neutral Sentiment: Multiple writeups focus on the company’s history of beating earnings estimates and suggest another beat is possible, but this is more of a preview than a fresh catalyst. Will Lam Research (LRCX) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Some coverage raises valuation concerns after the stock’s big run, but this has not yet overwhelmed the positive AI and earnings narrative. Lam Research (NASDAQ:LRCX) Rally Puts Valuation In Focus

Analyst Ratings Changes

LRCX has been the topic of several recent analyst reports. The Goldman Sachs Group reissued a “buy” rating and set a $290.00 target price on shares of Lam Research in a research note on Thursday, April 23rd. Susquehanna reaffirmed a “positive” rating and issued a $475.00 target price (up from $385.00) on shares of Lam Research in a research report on Tuesday. HSBC lifted their price target on Lam Research from $221.00 to $247.00 and gave the company a “hold” rating in a report on Friday, April 24th. Sanford C. Bernstein upped their price target on Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, Jefferies Financial Group increased their price objective on Lam Research from $285.00 to $315.00 and gave the stock a “buy” rating in a research note on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $345.39.

Lam Research Price Performance

The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $489.30 billion, a price-to-earnings ratio of 73.82, a P/E/G ratio of 3.40 and a beta of 1.85. The stock’s 50 day moving average price is $320.21 and its two-hundred day moving average price is $253.79.

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

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Wednesday, June 17th. Lam Research’s payout ratio is currently 19.62%.

Insider Activity

In related news, SVP Neil J. Fernandes sold 7,659 shares of the business’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 owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. The trade was a 11.58% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the stock in a transaction that occurred 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 completion of the transaction, the director owned 199,205 shares in the company, valued at $69,881,114. This represents a 21.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last three months. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of LRCX. PMV Capital Advisers LLC acquired a new stake in shares of Lam Research in the fourth quarter worth about $25,000. Stance Capital LLC acquired a new position in shares of Lam Research during the 3rd quarter valued at about $26,000. Bayban bought a new position in shares of Lam Research in the 4th quarter valued at approximately $26,000. Vermillion Wealth Management Inc. bought a new position in shares of Lam Research in the 1st quarter valued at approximately $26,000. Finally, Cedar Mountain Advisors LLC raised its stake in shares of Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 shares in the last quarter. Institutional investors 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.