Lam Research (NASDAQ:LRCX) Stock Price Up 5.1% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s stock price rose 5.1% during trading on Friday . The stock traded as high as $310.30 and last traded at $307.65. 8,336,594 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 10,930,440 shares. The stock had previously closed at $292.66.

Lam Research News Summary

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

• Positive Sentiment: Strong outlook supports semiconductor-equipment demand. Lam Research reported record June-quarter revenue of $6.72 billion and guided for approximately $8.10 billion in September-quarter revenue, reinforcing expectations for continued growth. Lam Research June-quarter earnings release
• Positive Sentiment: Dividend increase improves the shareholder-return story. Lam Research raised its quarterly dividend by approximately 27% to $0.33 per share after its record quarter, which may attract income-oriented investors. Lam Research dividend announcement
• Positive Sentiment: AI-related investment adds to long-term optimism. The company broke ground on a new Oregon research laboratory and plans to invest more than $3 billion in its global lab network over five years to support advanced chip development. Lam Research Oregon lab announcement
• Neutral Sentiment: Recent options activity has drawn investor attention and may indicate expectations for a larger move, although it does not establish the direction of the stock. Options market analysis
• Negative Sentiment: Valuation and insider selling remain risks. Analysts’ targets are generally above the current level, but Lam trades at a demanding valuation after a major multiyear rally. Insiders have reported numerous sales and no open-market purchases during the past six months, potentially limiting enthusiasm. Lam Research valuation analysis

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. TD Cowen reaffirmed a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Cantor Fitzgerald set a $500.00 price objective on Lam Research and gave the company an “overweight” rating in a research note on Monday, June 29th. Sanford C. Bernstein increased their target price on Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Evercore reiterated an “outperform” rating and issued a $355.00 price target on shares of Lam Research in a report on Monday, July 20th. Finally, Weiss Ratings raised Lam Research from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, August 21st. One research 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 presently has an average rating of “Moderate Buy” and an average price target of $358.97.

Lam Research Stock Performance

The company has a fifty day moving average price of $322.77 and a two-hundred day moving average price of $291.28. The firm has a market cap of $384.97 billion, a price-to-earnings ratio of 53.41, a price-to-earnings-growth ratio of 1.14 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter last year, the firm posted $1.33 EPS. The business’s revenue for the quarter was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts expect that Lam Research Corporation will post 9.33 EPS for the current year.

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a 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 is presently 18.06%.

Insiders Place Their Bets

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were 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 directly owned 199,205 shares in the company, valued at $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 owned 42,462 shares in the company, valued at $12,843,056.52. This represents a 10.53% decrease in their position. 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 77,782 shares of company stock worth $26,755,370 over the last ninety days. 0.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Bayban acquired a new stake in Lam Research during the fourth quarter valued at $26,000. Vermillion Wealth Management Inc. purchased a new stake in shares of Lam Research during the 1st quarter worth about $26,000. Cedar Mountain Advisors LLC lifted its holdings in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after buying an additional 85 shares during the last quarter. Paladin Partners LLC bought a new stake in shares of Lam Research in the 2nd quarter valued at approximately $26,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Lam Research during the 4th quarter valued at $27,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation (NASDAQ: LRCX) is a 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.