Zacks Research downgraded shares of Lam Research (NASDAQ:LRCX – Free Report) from a strong-buy rating to a hold rating in a research note released on Thursday,Zacks reports.
A number of other research firms have also weighed in on LRCX. Stifel Nicolaus raised their target price 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. Berenberg Bank set a $420.00 price objective on Lam Research in a research note on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $375.00 target price on shares of Lam Research in a report on Monday. Morgan Stanley set a $339.00 target price on shares of Lam Research and gave the company an “overweight” rating in a report on Thursday. Finally, Mizuho cut their target price on Lam Research from $365.00 to $360.00 and set an “outperform” rating on the stock in a research report on Thursday. Twenty-six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and a consensus target price of $354.55.
Read Our Latest Analysis on LRCX
Lam Research Stock Performance
NASDAQ:LRCX opened at $230.10 on Thursday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.91 and a current ratio of 2.48. The stock has a market capitalization of $287.95 billion, a PE ratio of 34.29, a P/E/G ratio of 0.83 and a beta of 1.85. Lam Research has a fifty-two week low of $135.50 and a fifty-two week high of $438.50. The company has a fifty day moving average of $301.90 and a two-hundred day moving average of $309.32.
Lam Research (NASDAQ:LRCX – Get Free Report) last announced its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The business had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion. During the same quarter last year, the business earned $1.26 earnings per share. The company’s revenue for the quarter was up 54.4% compared to the same quarter last year. As a group, research analysts forecast that Lam Research will post 9.48 earnings per share for the current fiscal year.
Lam Research Increases Dividend
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were paid a $0.33 dividend. The ex-dividend date was Wednesday, September 23rd. This is an increase from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a dividend yield of 0.6%. Lam Research’s payout ratio is 22.92%.
Insider Buying and Selling
In other Lam Research news, insider Ava Harter sold 5,000 shares of the 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 sale, the insider directly owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their position. The sale was disclosed in a document filed with the SEC, 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 firm’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the sale, the director owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.31% of the stock is owned by insiders.
Hedge Funds Weigh In On Lam Research
Several large investors have recently bought and sold shares of LRCX. Revolve Wealth Partners LLC lifted its stake in Lam Research by 3.8% in the 3rd quarter. Revolve Wealth Partners LLC now owns 2,222 shares of the semiconductor company’s stock valued at $730,000 after buying an additional 82 shares in the last quarter. Beacon Capital Management LLC increased its position in Lam Research by 16.1% during the third quarter. Beacon Capital Management LLC now owns 1,140 shares of the semiconductor company’s stock worth $375,000 after buying an additional 158 shares in the last quarter. Brucke Financial Inc. increased its position in Lam Research by 10.8% during the third quarter. Brucke Financial Inc. now owns 3,578 shares of the semiconductor company’s stock worth $1,175,000 after buying an additional 349 shares in the last quarter. Norris Perne & French LLP MI purchased a new position in Lam Research during the third quarter worth $866,000. Finally, Signaturefd LLC raised its holdings in shares of Lam Research by 6.0% in the third quarter. Signaturefd LLC now owns 35,420 shares of the semiconductor company’s stock worth $11,636,000 after acquiring an additional 2,019 shares during the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.
Key Headlines Impacting Lam Research
Here are the key news stories impacting Lam Research this week:
- Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
- Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
- Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
- Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
- Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
- Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.
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.
Featured Articles
- Five stocks we like better than Lam Research
- Grand Canyon Education Strengthens Its Outlook, But Wall Street Remains Divided
- Amex Stock Slides on Job Cuts, But the Real Story Is Macro
- Chefs’ Warehouse Has Rallied 76%—Can the Stock Keep Climbing?
- MarketBeat Week in Review – 10/19 – 10/23
Receive News & Ratings for Lam Research Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lam Research and related companies with MarketBeat.com's FREE daily email newsletter.
