Lam Research (NASDAQ:LRCX) Trading Up 1.6% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX)’s stock price was up 1.6% on Tuesday . The stock traded as high as $316.86 and last traded at $311.41. 6,860,727 shares traded hands during trading, a decline of 39% from the average session volume of 11,321,047 shares. The stock had previously closed at $306.40.

Lam Research News Summary

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.

Analyst Ratings Changes

LRCX has been the topic of several research reports. Needham & Company LLC restated a “buy” rating and issued a $390.00 price target on shares of Lam Research in a research report on Thursday, July 30th. Morgan Stanley lowered their price objective on shares of Lam Research from $404.00 to $367.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Royal Bank Of Canada lifted their price objective on Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. upped their target price on Lam Research from $300.00 to $315.00 and gave the stock an “overweight” rating in a report on Thursday, April 23rd. Finally, Mizuho lifted their price objective on shares of Lam Research from $380.00 to $400.00 and gave the stock an “outperform” rating in a research report on Thursday, July 9th. One research 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’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $358.47.

Lam Research Stock Up 3.5%

The company’s 50 day moving average price is $338.86 and its 200 day moving average price is $281.96. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $422.54 billion, a price-to-earnings ratio of 58.46, a P/E/G ratio of 1.24 and a beta of 1.84.

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, beating the consensus estimate of $1.69 by $0.13. The firm 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 firm’s revenue was up 30.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, research analysts forecast that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were paid a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is presently 18.06%.

Insider Buying and Selling

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the firm’s stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 87,142 shares of the company’s stock, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the sale, the director owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. 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 80,441 shares of company stock valued at $27,614,296 over the last quarter. 0.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. World Equity Group Inc. boosted its position in shares of Lam Research by 0.5% during the second quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock valued at $2,416,000 after buying an additional 29 shares during the last quarter. Tenzing Financial LLC raised its position in Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after buying an additional 34 shares during the last quarter. Gibraltar Capital Management Inc. raised its position in Lam Research by 3.6% in the 2nd quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock worth $455,000 after buying an additional 36 shares during the last quarter. Elevated Financial Group LLC lifted its stake in Lam Research by 3.0% during the 2nd quarter. Elevated Financial Group LLC now owns 1,223 shares of the semiconductor company’s stock valued at $530,000 after acquiring an additional 36 shares during the period. Finally, Yoder Wealth Management Inc. lifted its stake in Lam Research by 3.3% during the 2nd quarter. Yoder Wealth Management Inc. now owns 1,129 shares of the semiconductor company’s stock valued at $489,000 after acquiring an additional 36 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 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.