Lam Research (NASDAQ:LRCX) Shares Up 4.2% – Time to Buy?

Lam Research Corporation (NASDAQ:LRCX)’s stock price was up 4.2% during mid-day trading on Tuesday . The stock traded as high as $321.77 and last traded at $320.42. Approximately 8,664,677 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 10,899,726 shares. The stock had previously closed at $307.65.

Key Lam Research News

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

• Positive Sentiment: AI and memory demand are supporting the outlook. Industry spending on artificial intelligence chips, high-bandwidth memory and advanced DRAM is expected to drive demand for Lam’s wafer-fabrication equipment. Higher earnings estimates have further strengthened expectations for the company. Upcoming management presentations could provide additional insight into customer spending. Why Is Lam Research Corp (LRCX) Stock Suddenly Gaining Momentum?
• Positive Sentiment: Recent operating results remain strong. Lam’s latest reported quarter exceeded expectations, with adjusted earnings of $1.82 per share versus the $1.69 consensus and revenue of $6.72 billion versus $6.66 billion expected. Revenue increased 30% year over year, while next-quarter earnings guidance of $2.00 to $2.30 per share supports the bullish outlook.
• Positive Sentiment: Analyst and long-term investment commentary is constructive. Coverage highlights AI-chip demand, rising revenue, margin improvement and favorable earnings forecasts as potential sources of additional upside, despite the stock’s substantial appreciation. Lam Research Nearly Triples in a Year: Is the Stock Still Worth Buying?
• Positive Sentiment: Broker sentiment is supportive. Lam Research has received a consensus “Moderate Buy” rating, adding to the positive backdrop for LRCX. Lam Research Corporation Receives Consensus Rating of Moderate Buy
• Neutral Sentiment: Technical signals are mixed: momentum has improved, but MACD and RSI remain neutral. The stock has also substantially outperformed many technology-equipment peers, raising the bar for further gains. Is Lam Research Outpacing Its Computer and Technology Peers This Year?
• Negative Sentiment: Valuation is a risk. After a roughly 45% six-month advance and nearly tripling over the past year, LRCX trades at an elevated earnings multiple. Any slowdown in AI or memory-equipment spending could trigger profit-taking.

Analyst Upgrades and Downgrades

LRCX has been the topic of several recent research reports. Needham & Company LLC reiterated a “buy” rating and set a $390.00 price objective on shares of Lam Research in a research report on Thursday, July 30th. Stifel Nicolaus boosted their price target on shares of Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Evercore restated an “outperform” rating and set a $355.00 price target on shares of Lam Research in a research report on Monday, July 20th. Sanford C. Bernstein raised their price objective on Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. Finally, UBS Group decreased their price objective on Lam Research from $435.00 to $425.00 and set a “buy” rating on the stock in a report on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $358.97.

Lam Research Stock Up 4.2%

The company’s fifty day simple moving average is $319.27 and its 200 day simple moving average is $292.29. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $400.95 billion, a P/E ratio of 55.63, a price-to-earnings-growth ratio of 1.22 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the previous year, the firm posted $1.33 EPS. The company’s revenue for the quarter 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. Research analysts expect that Lam Research Corporation will post 9.33 EPS for the current year.

Lam Research Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio (DPR) is 18.06%.

Insider Activity at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the stock in a transaction dated 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 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of Lam Research stock in a transaction dated 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 transaction, the director directly owned 87,142 shares of the company’s stock, valued at approximately $29,192,570. This trade represents a 17.34% 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 have sold 77,782 shares of company stock worth $26,755,370 over the last ninety days. 0.31% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lam Research

Several large investors have recently made changes to their positions in LRCX. California State Teachers Retirement System increased its holdings in shares of Lam Research by 42,619.5% during the second quarter. California State Teachers Retirement System now owns 821,470,614 shares of the semiconductor company’s stock valued at $355,967,861,000 after acquiring an additional 819,547,672 shares in the last quarter. State Street Corp grew its position in Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock valued at $8,024,684,000 after purchasing an additional 265,805 shares during the last quarter. Geode Capital Management LLC increased its stake in Lam Research by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock valued at $5,764,117,000 after purchasing an additional 126,613 shares in the last quarter. Invesco Ltd. lifted its stake in shares of Lam Research by 7.7% in the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after buying an additional 1,638,406 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Lam Research during the fourth quarter valued at approximately $3,645,427,000. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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.