Rakuten Investment Management Inc. Buys 377,926 Shares of Lam Research Corporation $LRCX

Rakuten Investment Management Inc. bought a new stake in Lam Research Corporation (NASDAQ:LRCX) during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 377,926 shares of the semiconductor company’s stock, valued at approximately $122,395,000. Lam Research comprises 0.3% of Rakuten Investment Management Inc.’s holdings, making the stock its 26th biggest holding.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Paladin Partners LLC bought a new position in shares of Lam Research during the second quarter worth about $26,000. William Mack & Associates Inc. bought a new stake in Lam Research in the 3rd quarter valued at about $25,000. Dakota Community Bank & Trust NA bought a new stake in Lam Research in the 3rd quarter valued at about $33,000. Quintet Private Bank Europe S.A. lifted its position in Lam Research by 100.0% in the 3rd quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 50 shares during the last quarter. Finally, Bravera Wealth acquired a new position in Lam Research during the 2nd quarter valued at about $46,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Reports pointed to strong AI-chip demand and December-quarter guidance that helped support a Tuesday rebound; Jim Cramer’s endorsement also added to the positive sentiment. What Is Going on With Lam Research Stock on Tuesday? The wider semiconductor sector’s recovery provided another tailwind. Lam Research Stock Rises Amid Semiconductor Sector Rebound
• Positive Sentiment: Bernstein reportedly sees 53% potential upside after LRCX fell 34% over the past month, suggesting some analysts view the selloff as an opportunity. Bernstein Sees Upside in Lam Research
• Neutral Sentiment: Lam reported a record September quarter, with revenue of $8.22 billion and net income of $2.75 billion. Its December-quarter revenue outlook of about $8.6 billion and EPS guidance near $2.33 were broadly in line with expectations, limiting the positive surprise. Should Cautious Guidance Require Action From Lam Research Investors?
• Negative Sentiment: Component shortages could constrain execution, while management expects China-related revenue to decline in the near term. These risks, alongside concerns about AI spending across chip-equipment makers, contributed to the post-earnings selloff and may keep volatility elevated. Is Lam Research Stock’s Fall a Bargain or a Warning?

Insider Buying and Selling

In related news, Director Bethany Mayer sold 9,557 shares of the business’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 sale, the director owned 20,995 shares of the company’s stock, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 completion of the sale, the insider owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This trade represents a 10.53% 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. 0.31% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several research analysts have commented on LRCX shares. Morgan Stanley set a $339.00 target price on shares of Lam Research and gave the stock an “overweight” rating in a research report on Thursday, October 22nd. Wall Street Zen raised Lam Research from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Berenberg Bank set a $420.00 price target on Lam Research in a report on Wednesday, September 9th. Stifel Nicolaus boosted their price objective on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Finally, Fundamental Research set a $390.00 price objective on Lam Research in a report on Thursday, October 1st. Twenty-six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Lam Research has an average rating of “Moderate Buy” and an average target price of $360.23.

Lam Research Stock Performance

Shares of LRCX opened at $230.72 on Wednesday. The firm has a 50-day moving average price of $291.15 and a 200 day moving average price of $283.95. The firm has a market capitalization of $288.21 billion, a PE ratio of 34.38, a P/E/G ratio of 0.84 and a beta of 1.97. The company has a quick ratio of 1.86, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. Lam Research Corporation has a 52-week low of $135.50 and a 52-week high of $438.50.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The firm had revenue of $8.22 billion for the quarter, compared to analysts’ expectations of $8.14 billion. During the same quarter last year, the company earned $1.26 EPS. Lam Research’s quarterly revenue was up 54.4% on a year-over-year basis. On average, sell-side analysts anticipate that Lam Research Corporation will post 9.59 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This is a boost from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Wednesday, September 23rd. Lam Research’s dividend payout ratio (DPR) is 19.67%.

Lam Research Profile

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.