Lam Research (NASDAQ:LRCX) Stock Jumps 8.2% After Dividend Announcement

Lam Research Corporation (NASDAQ:LRCX) shares shot up 8.2% on Friday after the company announced a dividend. The stock traded as high as $209.20 and last traded at $200.44. 17,897,957 shares traded hands during trading, an increase of 64% from the average daily volume of 10,924,982 shares. The stock had previously closed at $185.20.

The newly announced dividend which will be paid on Wednesday, January 6th. Stockholders of record on Wednesday, December 2nd will be paid a $0.33 dividend. The ex-dividend date of this dividend is Wednesday, December 2nd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.7%. Lam Research’s dividend payout ratio is 19.67%.

Analysts Set New Price Targets

LRCX has been the subject of several recent research reports. Wall Street Zen upgraded Lam Research from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the company a “buy” rating in a research note on Thursday, July 30th. Mizuho lowered their target price on Lam Research from $365.00 to $360.00 and set an “outperform” rating on the stock in a research note on Thursday, October 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $350.00 target price (down from $450.00) on shares of Lam Research in a research report on Thursday, July 30th. Finally, Stifel Nicolaus raised their price target on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Twenty-six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and a consensus target price of $360.23.

Lam Research Price Performance

The company has a quick ratio of 1.86, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $250.38 billion, a P/E ratio of 29.87, a P/E/G ratio of 0.82 and a beta of 1.97. The company’s 50-day simple moving average is $286.73 and its 200 day simple moving average is $283.78.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.18 by $0.02. The company had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. Lam Research’s quarterly revenue was up 54.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.26 EPS. As a group, sell-side analysts expect that Lam Research Corporation will post 9.59 earnings per share for the current fiscal year.

Trending Headlines about Lam Research

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

• Positive Sentiment: The board authorized up to $25 billion in share repurchases, equivalent to as much as 9% of outstanding shares. Buybacks can support earnings per share and signal management sees value in the stock, although the authorization does not guarantee that all shares will be repurchased. Lam Research announcement
• Positive Sentiment: Lam also declared a quarterly dividend of $0.33 per share, payable January 6 to shareholders of record December 2. Share repurchase and dividend announcement
• Neutral Sentiment: The rally may also draw attention to LRCX’s substantial presence in semiconductor, technology, and Nasdaq-100 funds. Overlapping fund holdings can magnify investors’ exposure to the stock in either direction. ETF exposure article
• Negative Sentiment: Risks persist after a severe chip-stock selloff. Coverage points to uncertainty around regulation, profit-taking, and a possible slowdown in capital spending; weaker equipment investment could weigh on Lam’s business. Semiconductor selloff analysis

Lam Research announced that its Board of Directors has initiated a share buyback program on Thursday, November 5th that allows the company to repurchase $25 billion in shares. This repurchase authorization allows the semiconductor company to repurchase up to 9% of its shares through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Lam Research news, 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 transaction, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the business’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, 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 position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. World Equity Group Inc. grew its stake in Lam Research by 0.5% in the 2nd 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. Vann Equity Management LLC raised its holdings in Lam Research by 1.1% in the 3rd quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock worth $944,000 after acquiring an additional 31 shares during the period. Tenzing Financial LLC lifted its position in Lam Research by 3.5% during the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after acquiring an additional 34 shares during the last quarter. Advus Financial Partners LLC lifted its position in Lam Research by 1.0% during the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock worth $1,550,000 after acquiring an additional 34 shares during the last quarter. Finally, Paragon Private Wealth Management LLC lifted its position in Lam Research by 1.3% during the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock worth $1,178,000 after acquiring an additional 35 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

About Lam Research

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits.

The company’s wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations.

Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.