Lam Research (NASDAQ:LRCX) Stock Price Down 3.4% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s stock price dropped 3.4% during mid-day trading on Friday. The stock traded as low as $218.90 and last traded at $225.92. 10,978,354 shares were traded during mid-day trading, an increase of 0% from the average daily volume of 10,954,359 shares. The stock had previously closed at $233.78.

Key Stories Impacting Lam Research

Investors following LRCX have been watching these stories:

• Positive Sentiment: Lam’s board authorized a share-repurchase program of up to $25 billion and reaffirmed its quarterly dividend at $0.33 per share, providing a potential source of shareholder returns. Article: Lam Research Just Gave Investors Something To Think About
• Positive Sentiment: Bernstein analyst Stacy Rasgon remains favorable on Lam after its steep recent decline, while Wells Fargo’s move to a neutral view on U.S. AI infrastructure suggests a less negative backdrop for the sector. Article: Lam Research Lost About 34% in a Month. Here’s Why Bernstein’s Rasgon Still Likes It
• Neutral Sentiment: Lam committed $15 million over four years to a LEGO Education STEM initiative. The partnership supports future science and engineering talent, but is unlikely to materially affect near-term results. Article: Lam Research and LEGO Education Partnership

Analysts Set New Price Targets

A number of research firms have recently issued reports on LRCX. Morgan Stanley set a $339.00 price target on Lam Research and gave the stock an “overweight” rating in a research report on Thursday, October 22nd. Berenberg Bank set a $420.00 price objective on Lam Research in a report on Wednesday, September 9th. Wall Street Zen raised shares of Lam Research from a “hold” rating to a “buy” rating in a research note on Saturday, October 24th. Citigroup reiterated a “buy” rating and set a $435.00 target price (down from $450.00) on shares of Lam Research in a report on Thursday, October 22nd. Finally, UBS Group reiterated a “buy” rating and set a $400.00 target price (down from $425.00) on shares of Lam Research in a report on Thursday, October 22nd. Twenty-six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $357.57.

Lam Research Trading Down 3.4%

The stock has a market capitalization of $282.21 billion, a P/E ratio of 33.67, a price-to-earnings-growth ratio of 0.87 and a beta of 1.97. The company has a current ratio of 2.48, a quick ratio of 1.86 and a debt-to-equity ratio of 0.27. The company has a 50-day moving average price of $279.00 and a 200 day moving average price of $283.79.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same period in the prior year, the business posted $1.26 EPS. The firm’s quarterly revenue was up 54.4% on a year-over-year basis. On average, research analysts forecast that Lam Research Corporation will post 9.60 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 6th. Shareholders of record on Wednesday, December 2nd will be issued a $0.33 dividend. The ex-dividend date is Wednesday, December 2nd. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. Lam Research’s payout ratio is currently 19.67%.

Lam Research announced that its board has approved a share buyback plan on Thursday, November 5th that permits the company to repurchase $25 billion in outstanding shares. This buyback authorization permits the semiconductor company to repurchase up to 9% of its shares through open market purchases. Share buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction that occurred 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 completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the business’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following the sale, 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. In the last three months, insiders sold 14,573 shares of company stock valued at $4,523,606. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several institutional investors have recently bought and sold shares of the business. Polaris Financial Partners purchased a new position in Lam Research during the third quarter valued at $4,814,000. Bank of America Corp DE grew its position in shares of Lam Research by 5.5% in 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 purchasing an additional 584,489 shares during the period. Rokos Capital Management LLP increased its stake in shares of Lam Research by 42.0% during the first quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock worth $55,532,000 after purchasing an additional 76,840 shares in the last quarter. Aware Super Pty Ltd as trustee of Aware Super purchased a new stake in shares of Lam Research during the first quarter worth about $59,973,000. Finally, Meeder Asset Management Inc. raised its position in shares of Lam Research by 50.7% during the 1st quarter. Meeder Asset Management Inc. now owns 37,383 shares of the semiconductor company’s stock worth $7,987,000 after purchasing an additional 12,574 shares during the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

Lam Research Company Profile

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits. The company’s wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations. Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.