Lam Research (NASDAQ:LRCX) Stock Price Up 1.5% – Still a Buy?

Shares of Lam Research Corporation (NASDAQ:LRCX) were up 1.5% during trading on Thursday . The stock traded as high as $292.78 and last traded at $292.66. 7,197,844 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 10,945,280 shares. The stock had previously closed at $288.32.

More Lam Research News

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

• Positive Sentiment: Analysts and investment commentary continue to identify Lam Research as a beneficiary of rising AI data-center spending and a potential memory-market recovery. Its wafer-fabrication equipment is used in advanced logic and memory production, and recent quarterly results showed revenue growth of 30% year over year and earnings above expectations. AI data-center spending article
• Positive Sentiment: Lam Research was included among stocks favored under a growth-at-a-reasonable-price strategy, reflecting expectations for continued earnings growth despite its premium valuation. Another article argues that the memory shortage could provide additional upside for LRCX. GARP stocks article
• Positive Sentiment: The company’s quarterly dividend increased from $0.26 to $0.33 per share, a roughly 27% increase. Although the yield remains modest, the payout increase adds to the shareholder-return case. Dividend increase article
• Neutral Sentiment: UBS reduced its price target from $435 to $425 but retained a Buy rating. The change signals somewhat less near-term upside while indicating continued confidence in Lam’s long-term semiconductor-equipment opportunity. UBS price-target article
• Negative Sentiment: After gaining approximately 420% over five years, Lam Research now looks expensive to some investors. With a price-to-earnings ratio near 50, the stock requires strong future growth to justify its valuation, making it vulnerable to profit-taking after its recent run. Lam Research valuation article
• Negative Sentiment: An insider sold 5,000 shares for about $1.5 million. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, reducing its importance as a fundamental signal, but it nevertheless contributed to short-term selling pressure. Insider sale article
• Negative Sentiment: Higher Treasury yields and a jump in crude oil prices renewed inflation and interest-rate concerns. Those conditions typically weigh on high-growth, high-multiple semiconductor stocks by increasing discount rates and financing costs. Lam Research market-pressure article

Analyst Upgrades and Downgrades

Several brokerages have issued reports on LRCX. Zacks Research raised shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. Morgan Stanley lowered their price target on Lam Research from $404.00 to $367.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Stifel Nicolaus boosted their price target on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a research report on Friday, July 10th. HSBC reaffirmed a “hold” rating and set a $333.00 price objective on shares of Lam Research in a research note on Monday, July 27th. Finally, Sanford C. Bernstein increased their price objective on Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a research report on Thursday, May 21st. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research presently has a consensus rating of “Moderate Buy” and a consensus target price of $358.97.

Lam Research Stock Performance

The stock’s 50-day moving average is $324.95 and its 200 day moving average is $290.88. The stock has a market cap of $366.21 billion, a price-to-earnings ratio of 50.81, a P/E/G ratio of 1.15 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 released its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analysts’ expectations of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The firm’s quarterly revenue was up 30.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, analysts predict that Lam Research Corporation will post 9.33 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be given a $0.33 dividend. The ex-dividend date is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a yield of 0.5%. Lam Research’s dividend payout ratio (DPR) is currently 22.92%.

Insider Buying and Selling at Lam Research

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s 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 sale, the director owned 87,142 shares of the company’s stock, valued at approximately $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a filing 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, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% 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. Over the last quarter, insiders sold 77,782 shares of company stock valued at $26,755,370. 0.31% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lam Research

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

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.