Erste Group Bank Expects Stronger Earnings for Lam Research

Lam Research Corporation (NASDAQ:LRCX) – Stock analysts at Erste Group Bank raised their FY2027 earnings estimates for shares of Lam Research in a report issued on Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now anticipates that the semiconductor company will post earnings of $9.46 per share for the year, up from their previous forecast of $9.40. The consensus estimate for Lam Research’s current full-year earnings is $9.35 per share. Erste Group Bank also issued estimates for Lam Research’s FY2028 earnings at $12.08 EPS.

LRCX has been the subject of several other reports. B. Riley Financial lifted their price target on shares of Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a research note on Thursday, October 1st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $375.00 price objective on shares of Lam Research in a research report on Monday. Susquehanna restated a “positive” rating and issued a $475.00 target price (up from $385.00) on shares of Lam Research in a research note on Tuesday, June 30th. Stifel Nicolaus boosted their target price on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Finally, Zacks Research raised Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. One equities research 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 stock. According to data from MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average price target of $354.55.

Lam Research Stock Down 11.8%

Shares of NASDAQ LRCX opened at $230.15 on Friday. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The firm has a market cap of $288.01 billion, a PE ratio of 39.96, a P/E/G ratio of 0.95 and a beta of 1.85. The company’s fifty day simple moving average is $303.94 and its 200 day simple moving average is $309.88. Lam Research has a 12-month low of $135.50 and a 12-month high of $438.50.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 76.78%. The company had revenue of $8.22 billion for the quarter, compared to the consensus estimate of $8.14 billion. During the same quarter in the previous year, the company earned $1.26 EPS. Lam Research’s quarterly revenue was up 54.4% compared to the same quarter last year.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. Lam Research’s dividend payout ratio (DPR) is presently 22.92%.

Insiders Place Their Bets

In other Lam Research news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the sale, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction 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 transaction, the director owned 20,995 shares in the company, valued at approximately $6,607,966.30. The trade was a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Paladin Partners LLC bought a new position in Lam Research in the 2nd quarter valued at about $26,000. Dakota Community Bank & Trust NA bought a new stake in Lam Research during the 3rd quarter worth approximately $33,000. Quintet Private Bank Europe S.A. increased its holdings in Lam Research by 100.0% during the 3rd quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company’s stock worth $33,000 after purchasing an additional 50 shares in the last quarter. Bravera Wealth bought a new stake in Lam Research during the 2nd quarter worth approximately $46,000. Finally, Cedar Mountain Advisors LLC raised its stake in shares of Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after purchasing an additional 85 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Lam Research reported record fiscal Q1 2027 revenue of $8.22 billion, up 54.4% year over year, and adjusted EPS of $2.20, narrowly beating analyst estimates. Operating margin exceeded 40% for the first time, supported by strong systems sales, NAND demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Management expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by artificial-intelligence infrastructure, memory upgrades and advanced chip manufacturing. Longer-term growth opportunities include expanding Aether dry-resist revenue and more than 30% annual growth in the Customer Support Business Group. LRCX Q1 Earnings Call Highlights $200B-Plus WFE Outlook for 2027
• Neutral Sentiment: Analysts remain broadly constructive on Lam Research’s long-term AI and semiconductor-cycle exposure, but several firms lowered price targets after the earnings call, reflecting increased near-term execution risk. Lam Research: Street trims target on supply headwinds but bullish long term
• Negative Sentiment: Component shortages, supply-chain bottlenecks and limited cleanroom capacity are restricting shipments and could limit the company’s ability to meet demand through 2027. December-quarter revenue guidance of approximately $8.6 billion was viewed as cautious despite being near consensus. Lam Research retreats amid cautious guidance and China revenue drop
• Negative Sentiment: Investors also expect China’s contribution to decline substantially from 35% of September-quarter revenue, adding geopolitical and regional-demand pressure. The warning triggered a broader semiconductor sell-off, weighing on related equipment stocks and amplifying LRCX’s decline. LRCX Stock Tumbles Overnight Despite Record Profits

About Lam Research

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.