Lam Research (NASDAQ:LRCX) Sets New 12-Month High – Still a Buy?

Lam Research Corporation (NASDAQ:LRCX)’s share price hit a new 52-week high on Wednesday . The company traded as high as $323.98 and last traded at $322.68, with a volume of 9761769 shares changing hands. The stock had previously closed at $305.35.

Lam Research News Summary

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

• Positive Sentiment: Applied Materials CEO Gary Dickerson said semiconductors are in their strongest period ever, with AI driving unprecedented computing demand and long-term growth. That upbeat read-through supports suppliers like Lam Research, which sells chipmaking equipment used in advanced semiconductor production. Article Title
• Positive Sentiment: Mizuho Securities reiterated a buy rating on Lam Research, reinforcing bullish analyst sentiment around the stock’s earnings power and long-term outlook. Article Title
• Neutral Sentiment: Lam Research has strong technical momentum after a huge run over the past year, but the stock is also viewed as expensive, with commentary noting it may be materially overvalued. That combination can keep traders interested while also raising caution about further upside. Article Title
• Neutral Sentiment: Short-interest data showed no meaningful change in reported shorts, so this does not appear to be a major new catalyst for the stock.
• Negative Sentiment: One market note warned that Lam Research’s valuation is elevated and that new buyers should be cautious, which may temper enthusiasm despite the company’s strong fundamentals. Article Title
• Negative Sentiment: Another trading article highlighted heavy put-option activity in Lam Research, suggesting some investors are positioning for downside protection or near-term volatility. Article Title

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on LRCX shares. Argus increased their price objective on shares of Lam Research from $175.00 to $280.00 in a research report on Tuesday, February 3rd. Susquehanna increased their price objective on shares of Lam Research from $350.00 to $385.00 and gave the company a “positive” rating in a research report on Thursday, April 23rd. Evercore increased their price objective on shares of Lam Research from $275.00 to $300.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. Oppenheimer reiterated an “outperform” rating and set a $330.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Twenty-seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $295.07.

Lam Research Stock Performance

The firm’s 50 day simple moving average is $262.01 and its 200 day simple moving average is $220.11. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The firm has a market cap of $397.68 billion, a PE ratio of 60.00, a PEG ratio of 2.64 and a beta of 1.81.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, topping analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same period in the previous year, the firm posted $1.04 EPS. The business’s quarterly revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, research analysts forecast that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Transactions at Lam Research

In other news, CFO Douglas R. Bettinger sold 50,057 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total value of $11,214,269.71. Following the completion of the sale, the chief financial officer owned 1,081,705 shares in the company, valued at approximately $242,334,371.15. This trade represents a 4.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ava Harter sold 6,010 shares of the firm’s stock in a transaction dated 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 completion of the sale, the insider owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 120,066 shares of company stock worth $27,953,242. 0.31% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in LRCX. PMV Capital Advisers LLC purchased a new position in Lam Research in the 4th quarter worth about $25,000. Stance Capital LLC purchased a new position in Lam Research in the 3rd quarter worth about $26,000. Bayban purchased a new position in Lam Research in the 4th quarter worth about $26,000. Vermillion Wealth Management Inc. purchased a new position in Lam Research in the 1st quarter worth about $26,000. Finally, Cedar Mountain Advisors LLC increased its stake in Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after buying an additional 85 shares during the period. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.