Lam Research (NASDAQ:LRCX) Shares Gap Up Following Dividend Announcement

Lam Research Corporation (NASDAQ:LRCX) shares gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $185.20, but opened at $208.65. Lam Research shares last traded at $202.40, with a volume of 2,622,856 shares.

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 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 presently 19.67%.

Analyst Ratings Changes

LRCX has been the topic of several analyst reports. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the stock a “buy” rating in a report on Thursday, July 30th. Wells Fargo & Company reissued an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Weiss Ratings downgraded Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Mizuho lowered their price objective on Lam Research from $365.00 to $360.00 and set an “outperform” rating on the stock in a research report on Thursday, October 22nd. Finally, Berenberg Bank set a $420.00 price objective on shares of Lam Research in a research note on Wednesday, September 9th. Twenty-six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average price target of $360.23.

Lam Research Trading Up 8.7%

The firm has a market capitalization of $251.52 billion, a price-to-earnings ratio of 29.83, a P/E/G ratio of 0.82 and a beta of 1.97. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.86 and a current ratio of 2.48. The company has a 50 day moving average price of $286.73 and a two-hundred day moving average price of $283.78.

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

More Lam Research News

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

• Positive Sentiment: Lam authorized a $25 billion share repurchase program, enough to buy back up to 9% of its shares. The large authorization is a potential source of shareholder support and signals management’s confidence in the company’s value. Lam Research buyback and dividend announcement
• Positive Sentiment: The board also declared a quarterly dividend of $0.33 per share—$1.32 annualized, or about a 0.7% yield—adding to the shareholder-return news. Repurchase authorization and dividend details
• Neutral Sentiment: The buyback announcement comes as Lam joins an AI-related market rebound, though the broader semiconductor sector’s outlook remains unsettled. Lam Research buyback and AI rebound
• Negative Sentiment: Recent pressure on chip stocks reflects competing concerns about regulation, investor profit-taking and a possible slowdown in capital spending. Uncertainty over AI-related investment could weigh on demand for Lam’s semiconductor manufacturing equipment. Chip-sector selloff and its potential causes

Lam Research announced that its Board of Directors has initiated a stock buyback plan on Thursday, November 5th that authorizes the company to buy back $25 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 9% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Activity

In other news, Director Bethany Mayer sold 9,557 shares of the business’s stock in a transaction dated 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 completion of 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Ava Harter sold 5,000 shares of the company’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 owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their position. 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.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently made changes to their positions in LRCX. Tortoise Investment Management LLC purchased a new stake in Lam Research during the third quarter valued at about $560,000. PBU The Pension Fund of Early Childhood & Youth Educators raised its holdings in shares of Lam Research by 3.5% in the 3rd quarter. PBU The Pension Fund of Early Childhood & Youth Educators now owns 137,315 shares of the semiconductor company’s stock worth $45,109,000 after purchasing an additional 4,648 shares during the period. Welch Financial Planning LLC raised its holdings in shares of Lam Research by 10.3% in the 3rd quarter. Welch Financial Planning LLC now owns 738 shares of the semiconductor company’s stock worth $242,000 after purchasing an additional 69 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. raised its holdings in shares of Lam Research by 312.7% in the 3rd quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. now owns 1,626 shares of the semiconductor company’s stock worth $534,000 after purchasing an additional 1,232 shares during the period. Finally, CENTRAL TRUST Co lifted its stake in shares of Lam Research by 0.3% in the 3rd quarter. CENTRAL TRUST Co now owns 18,735 shares of the semiconductor company’s stock valued at $6,155,000 after purchasing an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

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.