Lam Research (NASDAQ:LRCX) Shares Up 3.1% – Should You Buy?

Lam Research Corporation (NASDAQ:LRCX) traded up 3.1% on Monday. The stock traded as high as $279.92 and last traded at $272.20. Approximately 10,254,136 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 10,674,378 shares. The stock had previously closed at $263.94.

More Lam Research News

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

• Positive Sentiment: Positive earnings expectations: Deutsche Bank reportedly expects strong results from Lam Research, helping lift investor sentiment ahead of the company’s fiscal Q1 report scheduled for October 21. Lam Research Stock Jumps Ahead of This Week’s Earnings
• Positive Sentiment: AI and memory demand remain key catalysts: Analysts expect rising DRAM spending, advanced packaging investment and broader artificial-intelligence infrastructure demand to support revenue and free-cash-flow growth in the upcoming quarter. LRCX to Report Q1 Earnings
• Positive Sentiment: Upside from analyst conviction: One respected Wall Street firm has established a price target implying very substantial appreciation from recent levels, arguing that Lam’s fundamentals have held up despite the sector selloff. Lam Research Could Nearly Double
• Neutral Sentiment: Service revenue offers some stability: Lam generated $2.47 billion in customer-support-related revenue and other revenue in its June quarter. Recurring service activity may cushion equipment-cycle swings, though comparisons with ASML’s installed-base revenue are not directly equivalent. ASML vs. Lam Research Service Revenue
• Neutral Sentiment: Mixed trading signals: Lam shares benefited from a broader semiconductor rally, but exchange-traded funds were reported as net sellers, indicating that institutional flows remain uneven. ETFs Are Net Sellers of Lam Research
• Negative Sentiment: Technical risk persists: Wyckoff analysis points to potential additional downside after Lam fell to a multi-month low and remains well below its yearly high. The stock’s elevated valuation also leaves it sensitive to any earnings disappointment or cautious guidance. Lam Research Technical Outlook

Wall Street Analyst Weigh In

LRCX has been the subject of several recent research reports. Needham & Company LLC reissued a “buy” rating and set a $390.00 price target on shares of Lam Research in a research report on Thursday, July 30th. Mizuho lowered their price target on Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. Cantor Fitzgerald set a $500.00 price objective on Lam Research and gave the stock an “overweight” rating in a research note on Monday, June 29th. Berenberg Bank set a $420.00 price objective on Lam Research in a report on Wednesday, September 9th. Finally, TD Cowen reissued a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. One equities research 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 currently has a consensus rating of “Moderate Buy” and an average price target of $366.36.

Lam Research Stock Performance

The company has a market capitalization of $340.64 billion, a price-to-earnings ratio of 47.26, a PEG ratio of 1.05 and a beta of 1.85. The stock has a 50-day moving average price of $309.03 and a 200-day moving average price of $308.80. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The business had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same period in the previous year, the firm earned $1.33 EPS. The firm’s revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, analysts forecast that Lam Research Corporation will post 9.34 earnings per share for the current year.

Lam Research Increases Dividend

The business 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. This is an increase from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Wednesday, September 23rd. Lam Research’s dividend payout ratio is presently 22.92%.

Insider Activity

In other news, Director Bethany Mayer sold 9,557 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the sale, the insider owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. This represents a 10.53% 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. 0.31% of the stock is owned by corporate insiders.

Institutional Trading of Lam Research

Several institutional investors have recently added to or reduced their stakes in the company. Bayban acquired a new position in shares of Lam Research during the 4th quarter valued at $26,000. Vermillion Wealth Management Inc. acquired a new stake in Lam Research in the first quarter worth $26,000. Cedar Mountain Advisors LLC grew its holdings in 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 purchasing an additional 85 shares during the period. Paladin Partners LLC acquired a new stake in Lam Research in the second quarter worth $26,000. Finally, Sankala Group LLC bought a new stake in Lam Research in the fourth quarter valued at $31,000. 84.61% of the stock is currently owned by institutional investors.

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.