Lam Research (NASDAQ:LRCX) Stock Gets Price Target Reduction from Mizuho

Lam Research (NASDAQ:LRCX) had its target price trimmed by Mizuho from $365.00 to $360.00 in a research note issued to investors on Thursday morning, MarketBeat.com reports. The brokerage currently has an outperform rating on the semiconductor company’s stock.

Several other analysts also recently commented on the stock. Susquehanna reaffirmed a “positive” rating and set a $475.00 target price (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Morgan Stanley reiterated an “overweight” rating and issued a $385.00 price target (up from $367.00) on shares of Lam Research in a research note on Monday, October 5th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $375.00 price target on shares of Lam Research in a report on Monday, October 19th. B. Riley Financial raised their price objective on shares of Lam Research from $350.00 to $390.00 and gave the stock a “buy” rating in a research report on Thursday, October 1st. Finally, Citigroup restated a “buy” rating and set a $435.00 price objective (down from $450.00) on shares of Lam Research in a research report on Thursday. Twenty-six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $354.55.

Lam Research Price Performance

NASDAQ LRCX opened at $230.10 on Thursday. The firm’s 50 day moving average is $301.90 and its 200-day moving average is $309.32. The company has a quick ratio of 1.91, a current ratio of 2.48 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $287.95 billion, a PE ratio of 34.29, a price-to-earnings-growth ratio of 0.83 and a beta of 1.85. Lam Research has a 12-month low of $135.50 and a 12-month high of $438.50.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share 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 for the quarter, compared to analyst estimates of $8.14 billion. During the same quarter in the previous year, the firm earned $1.26 EPS. The business’s quarterly revenue was up 54.4% on a year-over-year basis. Equities research analysts anticipate that Lam Research will post 9.48 earnings per share for the current fiscal year.

Lam Research Increases Dividend

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

Insider Buying and Selling

In other news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction on 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 of the company’s stock, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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 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 in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. The SEC filing for this sale provides additional information. 0.31% of the stock is owned by insiders.

Institutional Trading of Lam Research

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. World Equity Group Inc. increased its holdings in shares of Lam Research by 0.5% during the second quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock valued at $2,416,000 after acquiring an additional 29 shares in the last quarter. Vann Equity Management LLC lifted its holdings in shares of Lam Research by 1.1% in the 3rd quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock worth $944,000 after purchasing an additional 31 shares in the last quarter. Tenzing Financial LLC lifted its holdings in shares of Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after purchasing an additional 34 shares in the last quarter. Advus Financial Partners LLC grew its position in Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after purchasing an additional 34 shares during the period. Finally, Paragon Private Wealth Management LLC grew its position in Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after purchasing an additional 35 shares during the period. 84.61% of the stock is owned by institutional investors.

Key Lam Research News

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.