Lam Research (NASDAQ:LRCX) Stock Jumps 3.1% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX) shares rose 3.1% during mid-day trading on Monday. The company traded as high as $279.92 and last traded at $272.20. 10,254,136 shares were traded during trading, a decline of 4% from the average session volume of 10,674,378 shares. The stock had previously closed at $263.94.

Lam Research News Summary

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

• Positive Sentiment: Analysts see potential for another earnings beat. Lam has a strong history of exceeding estimates, while demand for AI infrastructure, advanced memory, DRAM and advanced packaging could support results. The company’s previous quarter produced record $6.72 billion revenue, up 30% year over year. Why Lam Research Is Poised to Beat Earnings Estimates Again
• Positive Sentiment: Deutsche Bank previously indicated that Lam could deliver strong results, and the broader bull case remains tied to sustained semiconductor capital spending for AI, 5G and complex memory chips. Lam’s customer-support revenue also provides some recurring exposure. Lam Research Edges Up Ahead of Earnings

Analyst Upgrades and Downgrades

LRCX has been the subject of several research reports. UBS Group reduced their price target on shares of Lam Research from $435.00 to $425.00 and set a “buy” rating for the company in a research report on Tuesday, September 1st. Evercore set a $315.00 price objective on shares of Lam Research in a research report on Tuesday. Morgan Stanley reissued an “overweight” rating and set a $385.00 price objective (up from $367.00) on shares of Lam Research in a research report on Monday, October 5th. TD Cowen restated a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Finally, Zacks Research raised shares of Lam Research from a “hold” rating to a “strong-buy” rating in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Lam Research has an average rating of “Moderate Buy” and a consensus target price of $365.07.

Lam Research Trading Down 3.2%

The business’s 50-day moving average is $307.38 and its two-hundred day moving average is $309.50. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The stock has a market capitalization of $329.69 billion, a PE ratio of 45.74, a price-to-earnings-growth ratio of 1.08 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analysts’ expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. Lam Research’s revenue was up 30.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts anticipate that Lam Research Corporation will post 9.35 earnings per share for the current year.

Lam Research Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were issued a $0.33 dividend. The ex-dividend date of this dividend was Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. Lam Research’s payout ratio is presently 22.92%.

Insider Transactions at Lam Research

In related news, Director Bethany Mayer sold 9,557 shares of the stock in a transaction dated 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 completion of the transaction, the director directly owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, 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. 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 own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Polaris Financial Partners acquired a new position in Lam Research in the third quarter valued at $4,814,000. Bank of America Corp DE grew its position in Lam Research by 5.5% during the second quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock valued at $4,872,426,000 after acquiring an additional 584,489 shares during the period. Rokos Capital Management LLP grew its position in 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 acquiring an additional 76,840 shares during the period. Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in Lam Research during the first quarter worth about $59,973,000. Finally, Y Intercept Hong Kong Ltd acquired a new stake in Lam Research during the first quarter worth about $26,489,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.