Lam Research (NASDAQ:LRCX) Shares Gap Up – Still a Buy?

Shares of Lam Research Corporation (NASDAQ:LRCX) gapped up prior to trading on Thursday . The stock had previously closed at $374.80, but opened at $407.99. Lam Research shares last traded at $376.4650, with a volume of 2,124,463 shares.

Lam Research News Roundup

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

• Positive Sentiment: Wells Fargo raised its price target on Lam Research to $450 from $365 and kept an Overweight rating, signaling continued confidence in the company’s growth outlook and semiconductor capital equipment demand. Wells Fargo Raises its Price Target on Lam Research (LRCX)
• Positive Sentiment: Lam Research was highlighted by Zacks as a stock to watch, citing earnings growth and price strength, which may reinforce investor optimism around the stock’s momentum. Earnings Growth & Price Strength Make Lam Research (LRCX) a Stock to Watch
• Positive Sentiment: Micron’s strong earnings and upbeat memory-chip outlook lifted chip stocks broadly, while Lam Research gained attention for opening a Boise office to get closer to Micron’s memory expansion plans, underscoring its exposure to a key growth customer. Lam Research (LRCX) Opens Boise Office To Get Closer To Micron’s Memory Expansion
• Positive Sentiment: Lam Research was among the after-hours gainers alongside other semiconductor names, reflecting broader enthusiasm for AI chip stocks and improving sentiment across the sector. Top After-Hours Gainers Today Beyond Micron: QCOM, AMAT, LRCX Surge
• Neutral Sentiment: Brokerage data showed Lam Research with an average “Moderate Buy” recommendation, which supports a constructive but not especially new fundamental outlook. Lam Research Corporation (NASDAQ:LRCX) Receives Average Recommendation of “Moderate Buy” from Brokerages
• Neutral Sentiment: A report on short interest noted no meaningful short-interest build, so it does not appear to be a major driver for the stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on LRCX shares. Stifel Nicolaus lifted their price target on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. HSBC boosted their price objective on shares of Lam Research from $221.00 to $247.00 and gave the stock a “hold” rating in a research note on Friday, April 24th. JPMorgan Chase & Co. upped their price objective on shares of Lam Research from $300.00 to $315.00 and gave the stock an “overweight” rating in a report on Thursday, April 23rd. Wall Street Zen downgraded shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Twenty-eight equities 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, the stock has an average rating of “Moderate Buy” and an average target price of $334.43.

Lam Research Trading Down 5.7%

The stock’s 50 day moving average is $313.90 and its 200-day moving average is $249.58. The company has a market cap of $474.08 billion, a P/E ratio of 71.53, a PEG ratio of 3.31 and a beta of 1.85. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. The business had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. Lam Research’s revenue was up 23.8% compared to the same quarter last year. During the same period last year, the business earned $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Research analysts anticipate that Lam Research Corporation will post 5.7 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research’s dividend payout ratio (DPR) is 19.62%.

Insider Buying and Selling

In other Lam Research news, insider Ava Harter sold 6,010 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the sale, the insider directly owned 53,205 shares in the company, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. The trade was a 21.48% 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. Insiders sold a total of 86,339 shares of company stock worth $27,680,267 in the last three months. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Institutional investors have recently modified their holdings of the business. PMV Capital Advisers LLC bought a new position in Lam Research during the 4th quarter valued at about $25,000. Stance Capital LLC bought a new stake in shares of Lam Research in the third quarter worth approximately $26,000. Bayban purchased a new position in shares of Lam Research during the fourth quarter valued at approximately $26,000. Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research during the first quarter valued at approximately $26,000. Finally, Cedar Mountain Advisors LLC lifted its position in Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 85 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

About Lam Research

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.