Lam Research (NASDAQ:LRCX) Board of Directors Declares Stock Buyback Plan

Lam Research (NASDAQ:LRCX) announced that its Board of Directors has approved a share buyback program on Thursday, November 5th, RTT News reports. The company plans to repurchase $25 billion in outstanding shares. This buyback authorization permits the semiconductor company to buy up to 9% of its stock through open market purchases. Share buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Lam Research Price Performance

LRCX stock opened at $200.44 on Friday. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.86. The business has a 50 day simple moving average of $284.37 and a 200-day simple moving average of $283.67. The firm has a market capitalization of $250.38 billion, a PE ratio of 29.87, a price-to-earnings-growth ratio of 0.74 and a beta of 1.97. Lam Research has a 1 year low of $135.50 and a 1 year high of $438.50.

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

Lam Research Announces Dividend

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

Wall Street Analyst Weigh In

Several analysts have weighed in on LRCX shares. Bank of America reiterated a “buy” rating and set a $345.00 price target on shares of Lam Research in a research note on Thursday, October 22nd. Weiss Ratings cut Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 4th. 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. Zacks Research downgraded Lam Research from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 22nd. Finally, Citigroup reiterated a “buy” rating and issued a $435.00 target price (down from $450.00) on shares of Lam Research in a research report on Thursday, October 22nd. Twenty-six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Lam Research has an average rating of “Moderate Buy” and an average target price of $360.23.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the company’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 transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.31% of the company’s stock.

Lam Research News Roundup

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

• Positive Sentiment: The authorization allows Lam Research to repurchase up to about 9% of its shares. Investors may view the plan as a sign of management confidence and a potential source of support for per-share earnings. Lam Research Shares Gain on $25 Billion Buyback Authorization
• Positive Sentiment: The company also declared a quarterly dividend of $0.33 per share, payable January 6 to shareholders of record December 2. Lam Research Corporation Announces $25 Billion Share Repurchase Authorization and Declares Quarterly Dividend
• Neutral Sentiment: The buyback has drawn attention to LRCX’s significant presence in semiconductor, technology and Nasdaq-100 funds; overlapping holdings could amplify the stock’s effect on investors’ portfolios in either direction. Own a Semiconductor ETF? Lam Research’s Buyback Move Affects You
• Negative Sentiment: Broader chip-sector volatility remains a risk: recent coverage cited concerns about AI-related spending, possible capital-expenditure slowdowns, regulation and investor profit-taking. Those worries could temper gains if they persist. Chip Stocks Just Had Their Second-Worst Day on Record

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.