Lam Research (NASDAQ:LRCX) Stock Price Up 3.2% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX) rose 3.2% on Monday. The company traded as high as $241.25 and last traded at $237.50. 11,583,037 shares changed hands during trading, an increase of 8% from the average daily volume of 10,762,038 shares. The stock had previously closed at $230.10.

More Lam Research News

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

• Positive Sentiment: Analyst sentiment improved, including an upgrade arguing that Lam Research’s valuation and earnings outlook have become more attractive after the stock’s recent decline. A separate analyst also raised the company’s FY2027 EPS forecast, supporting the case for earnings-driven upside. Lam Research upgrade analysis FY2027 EPS forecast
• Positive Sentiment: Long-term growth articles highlighted Lam Research’s exposure to advanced memory, logic and AI-related chip manufacturing. Bulls also pointed to strong cash generation, a favorable forward valuation relative to some peers and potential upside if semiconductor capital spending remains robust. Long-term growth analysis Lam Research versus peers
• Positive Sentiment: The company’s latest quarterly results remain a fundamental support: revenue reached $8.22 billion, up 54.4% year over year, while EPS of $2.20 exceeded consensus. The strong results reinforce expectations for continued demand for wafer-fabrication equipment. Lam Research earnings quality analysis
• Neutral Sentiment: Lam Research gained even after Citi cut its price target, suggesting investors viewed the reduction as a valuation adjustment rather than a change to the company’s underlying growth story. Citi target cut
• Negative Sentiment: Risks include a broader rotation away from chip stocks toward cybersecurity, recent corrections in AI-linked equities and questions about whether record results are already reflected in Lam Research’s elevated valuation. AI trade rotation Earnings valuation concerns

Wall Street Analyst Weigh In

LRCX has been the topic of a number of recent research reports. Wells Fargo & Company restated an “overweight” rating and issued a $350.00 target price (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Stifel Nicolaus lifted 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. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $375.00 price objective on shares of Lam Research in a research report on Monday, October 19th. Cantor Fitzgerald set a $500.00 price objective on shares of Lam Research and gave the stock an “overweight” rating in a research note on Monday, June 29th. Finally, Susquehanna reaffirmed a “positive” rating and set a $475.00 target price (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Twenty-six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $354.55.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.86 and a current ratio of 2.48. The firm has a market capitalization of $296.68 billion, a PE ratio of 35.39, a price-to-earnings-growth ratio of 0.86 and a beta of 1.85. The firm’s 50 day moving average price is $301.90 and its 200-day moving average price is $309.95.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.18 by $0.02. The firm had revenue of $8.22 billion during the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. Lam Research’s revenue for the quarter was up 54.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.26 EPS. On average, research analysts expect that Lam Research Corporation will post 9.48 EPS for the current year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were issued a $0.33 dividend. The ex-dividend date of this dividend 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 yield of 0.6%. Lam Research’s dividend payout ratio is 19.67%.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This represents a 31.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Ava Harter sold 5,000 shares of the company’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 value of $1,512,300.00. Following the transaction, 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 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. 0.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Lam Research

Large investors have recently added to or reduced their stakes in the stock. Van ECK Associates Corp increased its holdings in Lam Research by 411.8% in the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after purchasing an additional 8,922,854 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Lam Research during the second quarter worth $3,777,585,000. Jennison Associates LLC lifted its stake in Lam Research by 296.9% during the first quarter. Jennison Associates LLC now owns 3,373,306 shares of the semiconductor company’s stock worth $720,740,000 after purchasing an additional 2,523,351 shares in the last quarter. California Public Employees Retirement System boosted its position in shares of Lam Research by 50.6% during the first quarter. California Public Employees Retirement System now owns 5,870,899 shares of the semiconductor company’s stock worth $1,254,376,000 after buying an additional 1,972,277 shares during the period. Finally, Amundi boosted its position in shares of Lam Research by 23.7% during the first quarter. Amundi now owns 10,147,479 shares of the semiconductor company’s stock worth $2,168,107,000 after buying an additional 1,942,862 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

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.