Lam Research (NASDAQ:LRCX) Stock Gets Price Target Trim from Needham & Company LLC

Lam Research (NASDAQ:LRCX) had its price objective cut by Needham & Company LLC from $390.00 to $290.00 in a report issued on Thursday morning, MarketBeat Ratings reports. They currently have a buy rating on the semiconductor company’s stock.

A number of other equities analysts have also issued reports on the stock. Jefferies Financial Group set a $335.00 price target on shares of Lam Research and gave the stock a “buy” rating in a research report on Thursday, July 30th. UBS Group dropped their price objective on shares of Lam Research from $435.00 to $425.00 and set a “buy” rating on the stock in a report on Tuesday, September 1st. Susquehanna reiterated a “positive” rating and issued a $475.00 price objective (up from $385.00) on shares of Lam Research in a research note on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $375.00 price objective on shares of Lam Research in a research note on Monday, October 19th. Finally, TD Cowen reissued a “buy” rating and set a $400.00 target price (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Twenty-six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and an average price target of $354.55.

Lam Research Stock Down 0.0%

Lam Research stock opened at $230.10 on Thursday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.91 and a current ratio of 2.48. The business’s 50-day simple moving average is $301.90 and its two-hundred day simple moving average is $309.32. The company has a market cap of $287.95 billion, a PE ratio of 34.29, a PEG ratio of 0.83 and a beta of 1.85. Lam Research has a fifty-two week low of $135.50 and a fifty-two week high of $438.50.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.18 by $0.02. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same period last year, the business posted $1.26 earnings per share. The company’s revenue for the quarter was up 54.4% compared to the same quarter last year. Equities analysts anticipate that Lam Research will post 9.48 EPS for the current year.

Lam Research Increases Dividend

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

Insiders Place Their Bets

In related news, Director Bethany Mayer sold 9,557 shares of the stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction 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 sale, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of institutional investors have recently modified their holdings of LRCX. Apollon Wealth Management LLC raised its holdings in Lam Research by 6.8% in the 3rd quarter. Apollon Wealth Management LLC now owns 42,378 shares of the semiconductor company’s stock worth $13,922,000 after purchasing an additional 2,714 shares during the period. Tower View Wealth Management LLC boosted its position in Lam Research by 4.4% during the third quarter. Tower View Wealth Management LLC now owns 7,603 shares of the semiconductor company’s stock worth $2,498,000 after purchasing an additional 319 shares in the last quarter. Dedeker Financial LLC boosted its position in Lam Research by 3.2% during the third quarter. Dedeker Financial LLC now owns 3,745 shares of the semiconductor company’s stock worth $1,230,000 after purchasing an additional 116 shares in the last quarter. Revolve Wealth Partners LLC grew its holdings in Lam Research by 3.8% in the third quarter. Revolve Wealth Partners LLC now owns 2,222 shares of the semiconductor company’s stock valued at $730,000 after purchasing an additional 82 shares during the period. Finally, Beacon Capital Management LLC grew its holdings in Lam Research by 16.1% in the third quarter. Beacon Capital Management LLC now owns 1,140 shares of the semiconductor company’s stock valued at $375,000 after purchasing an additional 158 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Lam Research News Summary

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

Lam Research Company 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.