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

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

Trending Headlines about Lam Research

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

• Positive Sentiment: Positive earnings expectations: Deutsche Bank reportedly expects strong results from Lam Research, helping lift investor sentiment ahead of the company’s fiscal Q1 report scheduled for October 21. Lam Research Stock Jumps Ahead of This Week’s Earnings
• Positive Sentiment: AI and memory demand remain key catalysts: Analysts expect rising DRAM spending, advanced packaging investment and broader artificial-intelligence infrastructure demand to support revenue and free-cash-flow growth in the upcoming quarter. LRCX to Report Q1 Earnings
• Positive Sentiment: Upside from analyst conviction: One respected Wall Street firm has established a price target implying very substantial appreciation from recent levels, arguing that Lam’s fundamentals have held up despite the sector selloff. Lam Research Could Nearly Double
• Neutral Sentiment: Service revenue offers some stability: Lam generated $2.47 billion in customer-support-related revenue and other revenue in its June quarter. Recurring service activity may cushion equipment-cycle swings, though comparisons with ASML’s installed-base revenue are not directly equivalent. ASML vs. Lam Research Service Revenue
• Neutral Sentiment: Mixed trading signals: Lam shares benefited from a broader semiconductor rally, but exchange-traded funds were reported as net sellers, indicating that institutional flows remain uneven. ETFs Are Net Sellers of Lam Research
• Negative Sentiment: Technical risk persists: Wyckoff analysis points to potential additional downside after Lam fell to a multi-month low and remains well below its yearly high. The stock’s elevated valuation also leaves it sensitive to any earnings disappointment or cautious guidance. Lam Research Technical Outlook

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on LRCX. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $375.00 target price on shares of Lam Research in a research report on Monday. Mizuho cut their price target on Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a report on Tuesday, August 25th. Jefferies Financial Group set a $335.00 price objective on Lam Research and gave the company a “buy” rating in a research note on Thursday, July 30th. Evercore reissued an “outperform” rating and issued a $355.00 price objective on shares of Lam Research in a research note on Monday, July 20th. Finally, Berenberg Bank set a $420.00 price objective on Lam Research in a report on Wednesday, September 9th. 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. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $366.36.

Lam Research Price Performance

The stock has a market capitalization of $340.64 billion, a price-to-earnings ratio of 47.26, a PEG ratio of 1.05 and a beta of 1.85. The business’s fifty day moving average price is $309.03 and its 200-day moving average price is $308.80. 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 earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping 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 the consensus estimate of $6.66 billion. During the same period in the previous year, the firm posted $1.33 earnings per share. The firm’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. On average, research analysts forecast that Lam Research Corporation will post 9.34 EPS for the current year.

Lam Research Increases Dividend

The business 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 an increase 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 0.5%. Lam Research’s dividend payout ratio (DPR) is presently 22.92%.

Insider Buying and Selling

In other Lam Research news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction that occurred on 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 completion of the sale, the insider directly owned 42,462 shares of the company’s stock, 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 is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several large investors have recently bought and sold shares of LRCX. World Equity Group Inc. grew its position in Lam Research by 0.5% in the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 29 shares in the last quarter. Vann Equity Management LLC lifted its position in shares of Lam Research by 1.1% during the 3rd quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock worth $944,000 after buying an additional 31 shares in the last quarter. Tenzing Financial LLC lifted its position in shares of Lam Research by 3.5% during the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after buying an additional 34 shares in the last quarter. Advus Financial Partners LLC boosted its stake in shares of Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock worth $1,550,000 after buying an additional 34 shares during the last quarter. Finally, Paragon Private Wealth Management LLC boosted its stake in shares of Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock worth $1,178,000 after buying an additional 35 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

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.