Lam Research (NASDAQ:LRCX) Hits New 52-Week High – Still a Buy?

by · The Markets Daily

Shares of Lam Research Corporation (NASDAQ:LRCX – Get Free Report) hit a new 52-week high during trading on Wednesday . The company traded as high as $166.28 and last traded at $165.94, with a volume of 4610996 shares trading hands. The stock had previously closed at $155.78.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on LRCX. JPMorgan Chase & Co. raised their price objective on shares of Lam Research from $113.00 to $165.00 and gave the company an “overweight” rating in a report on Thursday, October 23rd. Zacks Research upgraded shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 20th. Cantor Fitzgerald reissued an “overweight” rating and set a $170.00 target price on shares of Lam Research in a research note on Thursday, October 23rd. Evercore ISI upped their price target on shares of Lam Research from $115.00 to $170.00 and gave the company an “outperform” rating in a research report on Thursday, October 23rd. Finally, Susquehanna lifted their price objective on Lam Research from $135.00 to $200.00 and gave the stock a “positive” rating in a research report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, Lam Research currently has a consensus rating of “Moderate Buy” and an average price target of $148.54.

Check Out Our Latest Analysis on Lam Research

Lam Research Stock Performance

The firm has a market cap of $208.96 billion, a P/E ratio of 36.63, a PEG ratio of 1.68 and a beta of 1.87. The company’s 50-day moving average is $131.37 and its two-hundred day moving average is $104.82. The company has a current ratio of 2.21, a quick ratio of 1.60 and a debt-to-equity ratio of 0.37.

Lam Research (NASDAQ:LRCX – Get Free Report) last posted its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.04. The firm had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The business’s revenue was up 27.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.86 EPS. Lam Research has set its Q2 2026 guidance at 1.050-1.250 EPS. As a group, equities analysts predict that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Wednesday, September 24th were given a dividend of $0.26 per share. The ex-dividend date was Wednesday, September 24th. This is an increase from Lam Research’s previous quarterly dividend of $0.23. This represents a $1.04 annualized dividend and a yield of 0.6%. Lam Research’s dividend payout ratio (DPR) is currently 22.91%.

Insider Activity

In other news, SVP Vahid Vahedi sold 52,190 shares of the company’s stock in a transaction on Monday, October 13th. The stock was sold at an average price of $138.90, for a total transaction of $7,249,191.00. Following the transaction, the senior vice president owned 251,047 shares of the company’s stock, valued at $34,870,428.30. This represents a 17.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Bethany Mayer sold 1,298 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $159.99, for a total transaction of $207,667.02. Following the sale, the director owned 1,652 shares in the company, valued at $264,303.48. The trade was a 44.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 62,498 shares of company stock valued at $8,875,663 in the last three months. 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 business. Brighton Jones LLC grew its holdings in Lam Research by 1,032.4% in the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock worth $1,025,000 after acquiring an additional 12,936 shares during the last quarter. OneDigital Investment Advisors LLC boosted its position in shares of Lam Research by 29.7% in the 1st quarter. OneDigital Investment Advisors LLC now owns 13,777 shares of the semiconductor company’s stock worth $1,002,000 after purchasing an additional 3,153 shares in the last quarter. Concurrent Investment Advisors LLC raised its position in shares of Lam Research by 53.0% in the 1st quarter. Concurrent Investment Advisors LLC now owns 15,729 shares of the semiconductor company’s stock worth $1,144,000 after purchasing an additional 5,448 shares during the last quarter. Envestnet Asset Management Inc. increased its position in shares of Lam Research by 8.6% during the first quarter. Envestnet Asset Management Inc. now owns 3,117,325 shares of the semiconductor company’s stock valued at $226,630,000 after acquiring an additional 246,995 shares in the last quarter. Finally, TD Private Client Wealth LLC lifted its stake in Lam Research by 13.4% during the 1st quarter. TD Private Client Wealth LLC now owns 6,285 shares of the semiconductor company’s stock valued at $457,000 after acquiring an additional 743 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

About Lam Research

(Get Free Report)

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

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