Lam Research Corporation (NASDAQ: LRCX) experienced a decline in its share price, trading down by 1.7% on Thursday. The stock hit a low of $160.19 before closing at $162.19, with a trading volume of 9,593,920 shares, representing a 19% decrease from its average session volume of 11,863,777. This follows a previous closing price of $165.05.
Analysts Offer New Insights
Recent research reports have significantly impacted Lam Research’s stock outlook. Citigroup adjusted its price target from $120.00 to $175.00, maintaining a “buy” rating as of October 23, 2023. Similarly, Raymond James Financial raised its target from $90.00 to $110.00, assigning an “outperform” rating on July 31, 2023.
HSBC Global Research upgraded its rating to “hold” on September 30, 2023, while Evercore ISI increased its price objective from $115.00 to $170.00, also giving an “outperform” rating on October 23, 2023. Overall, the consensus among analysts shows one rating for “Strong Buy,” twenty-six for “Buy,” and nine for “Hold.” MarketBeat reports an average rating of “Moderate Buy” and a target price of $148.54.
Financial Performance and Guidance
Lam Research announced its earnings results on October 22, 2023, reporting an earnings per share (EPS) of $1.26, surpassing the consensus estimate of $1.22 by $0.04. The company generated revenue of $5.32 billion for the quarter, exceeding expectations of $5.23 billion. Notably, Lam Research’s quarterly revenue increased by 27.7% compared to the same quarter the previous year, when the company reported an EPS of $0.86.
Looking ahead, Lam Research has set its Q2 2026 guidance at a range of $1.050 to $1.250 EPS, with analysts forecasting a total of $3.71 EPS for the current fiscal year.
Dividend Announcement and Insider Activity
The company has declared a quarterly dividend of $0.26 per share, which will be paid on January 7, 2024, to investors of record on December 3, 2023. This dividend represents an annualized amount of $1.04 and a yield of 0.7%. The dividend payout ratio currently stands at 22.91%.
In related news, Senior Vice President Vahid Vahedi sold 52,190 shares of the company on October 13, 2023, at an average price of $138.90, totaling approximately $7.25 million. Following this transaction, Vahedi now owns 251,047 shares, valued at about $34.87 million. Another insider, Ava Harter, sold 9,010 shares on October 27, 2023, at an average price of $157.47, amounting to around $1.42 million.
Over the past three months, insiders have sold a total of 62,498 shares, valued at approximately $8.88 million. Currently, corporate insiders hold 0.31% of the company’s stock.
Institutional Investor Activity
Institutional investors have shown varying levels of interest in Lam Research’s shares. Vanguard Group Inc. increased its holdings by 0.3% in the third quarter, owning 130,974,214 shares valued at around $17.54 billion. Similarly, State Street Corp raised its stake by 1.1%, now holding 59,551,547 shares valued at approximately $5.81 billion.
JPMorgan Chase & Co. boosted its holdings by 14.4%, acquiring an additional 5,102,589 shares, while Geode Capital Management LLC increased its position by 3.5% during the same period. Lastly, Norges Bank acquired a new stake valued at $1.89 billion. Currently, institutional investors own 84.61% of Lam Research’s stock.
Lam Research Corporation specializes in designing, manufacturing, and servicing semiconductor processing equipment essential for integrated circuit fabrication. The company offers a range of products, including ALTUS and SABRE systems, which are crucial for various semiconductor applications.
As the market navigates these developments, investors and analysts continue to watch Lam Research closely for further updates on its performance and strategic direction.
