Lam Research (NASDAQ:LRCX) Shares Up 6% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s stock price shot up 6% during mid-day trading on Monday . The stock traded as high as $393.07 and last traded at $388.92. 13,397,968 shares changed hands during trading, an increase of 23% from the average session volume of 10,892,765 shares. The stock had previously closed at $366.81.

Key Lam Research News

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

• Positive Sentiment: Rothschild & Co Redburn raised its price target on Lam Research to $420 from $305 and reiterated a buy rating, signaling confidence in further upside. MarketScreener article on Rothschild & Co Redburn target raise
• Positive Sentiment: Citi also boosted its Lam Research price target to $450 from $315, citing booming wafer fab equipment demand and stronger forecast assumptions for the semiconductor capital spending cycle. Yahoo/Investing.com article on Citi target hike
• Positive Sentiment: Analyst and market commentary continue to point to strong memory-equipment demand and AI-driven packaging growth as key growth catalysts for Lam Research. Motley Fool article on memory stock and Lam Research growth
• Positive Sentiment: Multiple articles describe Lam Research as a profitable, high-quality growth stock, which supports investor enthusiasm around its earnings power and premium valuation. Insider Monkey article on most profitable American stocks
• Neutral Sentiment: There was also insider selling by a director under a pre-arranged 10b5-1 plan, which is notable but not necessarily a negative signal. SEC filing for director share sale
• Neutral Sentiment: The broader chip-equipment group is rallying with Intel’s manufacturing update lifting sentiment across semiconductor stocks, adding sector tailwinds for LRCX. Yahoo/Investing.com article on chip stocks rebound

Analyst Ratings Changes

Several brokerages recently issued reports on LRCX. UBS Group reiterated a “buy” rating and set a $375.00 price objective (up from $310.00) on shares of Lam Research in a report on Tuesday, June 9th. Oppenheimer reiterated an “outperform” rating and set a $400.00 price objective (up from $330.00) on shares of Lam Research in a report on Monday. HSBC increased their price objective on Lam Research from $221.00 to $247.00 and gave the stock a “hold” rating in a report on Friday, April 24th. Deutsche Bank Aktiengesellschaft increased their price objective on Lam Research from $300.00 to $325.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. Finally, Seaport Research Partners assumed coverage on Lam Research in a report on Monday, May 4th. They set a “buy” rating and a $300.00 price objective for the company. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $333.62.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The stock’s fifty day simple moving average is $295.60 and its 200-day simple moving average is $238.88. The company has a market capitalization of $467.94 billion, a P/E ratio of 70.60, a PEG ratio of 3.04 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The company had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.70 billion. During the same period in the prior year, the company earned $1.04 earnings per share. The business’s quarterly revenue was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities analysts forecast that Lam Research Corporation will post 5.7 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Wednesday, June 17th. Lam Research’s dividend payout ratio is 19.62%.

Insider Buying and Selling at Lam Research

In related news, Director Eric Brandt sold 54,500 shares of the 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 sale, the director owned 199,205 shares in the company, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the sale, the senior vice president owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. The trade was a 11.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 86,339 shares of company stock worth $27,680,267 over the last ninety days. Company insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently made changes to their positions in the stock. Cedar Mountain Advisors LLC lifted its stake in shares of Lam Research by 242.9% in the first 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 period. Vermillion Wealth Management Inc. acquired a new position in Lam Research in the first quarter worth about $26,000. PMV Capital Advisers LLC acquired a new position in Lam Research in the fourth quarter worth about $25,000. Bayban acquired a new position in Lam Research in the fourth quarter worth about $26,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in Lam Research in the fourth quarter worth about $27,000. Institutional investors 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.