Lam Research (NASDAQ:LRCX) Stock Price Up 2.9% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX) shot up 2.9% on Tuesday . The stock traded as high as $311.39 and last traded at $310.96. Approximately 9,231,983 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 10,908,276 shares. The stock had previously closed at $302.28.

Analyst Upgrades and Downgrades

A number of analysts recently commented on LRCX shares. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Citigroup reiterated a “buy” rating and issued a $450.00 price objective (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Weiss Ratings lowered Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, September 4th. Bank of America upped their price objective on Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $400.00 price objective (up from $330.00) on shares of Lam Research in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research has an average rating of “Moderate Buy” and a consensus target price of $361.81.

Lam Research Price Performance

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 firm’s fifty day moving average is $304.72 and its two-hundred day moving average is $297.27. The company has a market cap of $376.59 billion, a P/E ratio of 52.17, a P/E/G ratio of 1.23 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data 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 analysts’ expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s revenue for the quarter was up 30.0% compared to the same quarter last year. During the same quarter last 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, analysts anticipate that Lam Research Corporation will post 9.33 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is currently 22.92%.

Insider Buying and Selling at Lam Research

In other news, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction 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. This trade represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a legal 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 Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 32,839 shares of company stock worth $10,644,740 over the last 90 days. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. Paladin Partners LLC bought a new position in shares of Lam Research during the 2nd quarter worth approximately $26,000. Bravera Wealth acquired a new position in Lam Research during the 2nd quarter valued at approximately $46,000. Cedar Mountain Advisors LLC raised its holdings 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 worth $26,000 after buying an additional 85 shares during the last quarter. Comprehensive Financial Planning Inc. PA acquired a new stake in shares of Lam Research during the second quarter worth $52,000. Finally, Vermillion Wealth Management Inc. acquired a new position in Lam Research in the 1st quarter worth approximately $26,000. 84.61% of the stock is owned by institutional investors.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.