Valley National Advisers Inc. has increased its holdings in Lam Research Corporation (NASDAQ: LRCX) by a notable 38.7% during the third quarter of 2023, as reported in its latest filing with the Securities and Exchange Commission. The institutional investor now owns 60,019 shares of the semiconductor company after acquiring an additional 16,747 shares during this period. Lam Research now represents 1.2% of Valley National Advisers’ investment portfolio, making it the firm’s 14th largest holding. As of the most recent filing, the value of Valley National’s stake in Lam Research stands at approximately $8.035 million.
Several other institutional investors have also recently altered their positions in Lam Research. For instance, IMG Wealth Management Inc. initiated a new stake worth around $26,000 in Lam Research during the second quarter. Other notable investments include Howard Hughes Medical Institute, which purchased approximately $27,000 in shares, and Strategic Wealth Investment Group LLC, which invested about $29,000. Collectively, institutional investors own about 84.61% of Lam Research’s stock.
Analysts Provide Insights on Lam Research Stock
Lam Research has attracted attention from various Wall Street analysts, resulting in a series of updated target prices. In a report released on December 2, 2023, Morgan Stanley raised its target price for Lam Research from $137.00 to $158.00 while maintaining an “equal weight” rating. In a similar move, BNP Paribas Exane increased its price objective from $80.00 to $140.00 and assigned a “neutral” rating on October 23, 2023.
Various other firms have also revised their target prices. Citigroup raised its target from $175.00 to $190.00 on November 11, 2023, giving the stock a “buy” rating. Notably, a total of 26 analysts have rated Lam Research with a Buy rating, while 10 analysts have assigned a Hold rating. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a price target of around $161.21.
On the trading front, Lam Research shares opened at $178.07 on a recent Friday. The company has a market capitalization of approximately $223.66 billion and a price-to-earnings ratio of 39.22. The company’s 52-week trading range reflects a low of $56.32 and a high of $179.80.
Financial Performance and Dividend Declaration
Lam Research recently announced its quarterly earnings, revealing earnings per share (EPS) of $1.26 for the quarter ending October 22, 2023, surpassing analysts’ expectations of $1.22 by $0.04. The company reported a revenue of $5.32 billion, exceeding the anticipated $5.23 billion. This represents a year-over-year revenue increase of 27.7%, as last year the firm posted an EPS of $0.86.
In terms of future expectations, Lam Research has set its guidance for Q2 2026 at an EPS range of $1.050 to $1.250. Analysts forecast an average EPS of $3.71 for the current fiscal year.
In a related development, Lam Research declared a quarterly dividend to be paid on January 7, 2024. Shareholders of record as of December 3, 2023 will receive a dividend of $0.26 per share. This amount translates to an annualized dividend of $1.04 and a yield of 0.6%. The ex-dividend date is set for the same day as the record date.
Corporate insiders have been active as well. Chief Financial Officer Douglas R. Bettinger sold 40,080 shares on November 14, 2023, at an average price of $150.60, amounting to approximately $6.036 million. Following this transaction, Bettinger retains 987,237 shares valued at about $148.68 million. Additionally, insider Ava Harter sold 9,010 shares on October 27, 2023, for a total of approximately $1.419 million.
Lam Research Corporation, founded in 1980 and headquartered in Fremont, California, is a global supplier of wafer fabrication equipment and services for the semiconductor industry. The company’s offerings are essential for various stages of semiconductor device production, including thin film deposition and plasma etching. As the semiconductor industry evolves, Lam Research remains a key player with a focus on advanced-node patterning and emerging device architectures.
