Lam Research (NASDAQ:LRCX) Trading Up 3.3% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX)’s share price shot up 3.3% on Thursday . The stock traded as high as $345.12 and last traded at $337.01. Approximately 8,866,756 shares traded hands during trading, a decline of 22% from the average session volume of 11,301,427 shares. The stock had previously closed at $326.11.

Key Stories Impacting Lam Research

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

• Positive Sentiment: SanDisk’s bullish long-term targets boosted memory-equipment stocks. SanDisk’s multi-year financial model signaled sustained memory capital spending through 2030, strengthening expectations for orders of wafer-fabrication equipment from suppliers such as Lam Research. Lam Research, Applied Materials, and Camtek Rise After SanDisk Issues Bullish Financial Targets
• Positive Sentiment: Analyst support and earnings expectations remain favorable. Analysts continue to maintain Buy ratings, while Erste Group Bank expects increased earnings for Lam Research. The company’s most recent quarterly results also exceeded consensus estimates for both earnings and revenue, providing support for the bullish outlook. What’s Going On With Lam Research Stock Thursday? Erste Group Bank Expects Increased Earnings for Lam Research
• Positive Sentiment: Lam is expanding its semiconductor workforce pipeline. A collaboration with NY Creates will use Lam’s Semiverse Solutions platform to train approximately 3,500 university students in semiconductor process integration over five years. The initiative is strategically positive for industry capacity and Lam’s long-term customer relationships, although it is not an immediate revenue driver. Lam Research and NY Creates Team Up to Enable Training of University Students for the Semiconductor Workforce
• Neutral Sentiment: Strong inflows into semiconductor ETFs are supporting sector momentum, but the enthusiasm is partly offset by warnings that the semiconductor cycle may be nearing a peak. Semiconductor Flows Stay Sticky in Leveraged Chip ETFs
• Negative Sentiment: LRCX remains exposed to semiconductor-cycle and valuation risks after a substantial advance, making the stock vulnerable if memory or AI-related capital spending forecasts weaken.

Analysts Set New Price Targets

LRCX has been the topic of several analyst reports. TD Cowen reiterated a “buy” rating and set a $400.00 target price (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Royal Bank Of Canada raised their price target on Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. New Street Research upped their target price on shares of Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research report on Monday, April 27th. Citigroup reissued a “buy” rating and set a $450.00 price target (up from $315.00) on shares of Lam Research in a research note on Wednesday, June 17th. 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 target for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Lam Research presently has an average rating of “Moderate Buy” and a consensus price target of $358.47.

Lam Research Trading Up 3.3%

The stock has a market cap of $421.71 billion, a P/E ratio of 58.51, a P/E/G ratio of 1.24 and a beta of 1.84. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The stock’s fifty day moving average is $338.86 and its 200 day moving average is $281.96.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The company’s quarterly revenue was up 30.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, equities research analysts predict that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s dividend payout ratio is presently 18.06%.

Insider Activity at Lam Research

In related news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the sale, the senior vice president directly owned 58,470 shares in the company, valued at $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of Lam Research stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares of the company’s stock, valued at $29,192,570. The trade was a 17.34% 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. In the last 90 days, insiders have sold 80,441 shares of company stock worth $27,614,296. Company insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently made changes to their positions in LRCX. Fideuram Asset Management Ireland dac purchased a new position in Lam Research during the fourth quarter valued at approximately $10,035,000. Generali Investments Management Co LLC boosted its position in Lam Research by 62.0% in the 4th quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company’s stock worth $6,209,000 after purchasing an additional 13,878 shares in the last quarter. Rokos Capital Management LLP boosted its position in Lam Research by 42.0% in the 1st 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 Lam Research in the 1st quarter worth approximately $59,973,000. Finally, Y Intercept Hong Kong Ltd acquired a new stake in shares of Lam Research during the 1st quarter worth approximately $26,489,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

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.