Park Capital Management LLC, based in Wisconsin, has taken a significant step by acquiring a new stake in Lam Research Corporation during the third quarter of 2023. According to its recent filing with the Securities and Exchange Commission (SEC), the firm purchased 6,555 shares of the semiconductor company, amounting to approximately $878,000. This move reflects a growing interest among institutional investors in Lam Research, a key player in the semiconductor industry.
Several other hedge funds and institutional investors have also adjusted their positions in Lam Research recently. Notably, Norges Bank made a substantial investment in the second quarter, acquiring shares valued at $1.89 billion. Similarly, JPMorgan Chase & Co. increased its holdings by 14.4%, now owning 40,622,437 shares worth around $3.95 billion after purchasing an additional 5,102,589 shares. Other firms, including Nordea Investment Management AB and Artisan Partners Limited Partnership, have also significantly boosted their stakes in the company.
Institutional investors collectively hold approximately 84.61% of Lam Research’s stock, indicating strong confidence in the company’s future prospects.
Analyst Ratings and Stock Performance
Lam Research has recently been in the spotlight among financial analysts. Oppenheimer set a price target of $200.00 for the company’s shares, assigning an “outperform” rating on October 23. Wells Fargo & Company raised its price target from $135.00 to $145.00, maintaining an “equal weight” rating. Additionally, JPMorgan Chase & Co. raised its target price from $113.00 to $165.00, giving the stock an “overweight” rating.
In total, 26 research analysts have rated Lam Research with a Buy rating, while 10 analysts have assigned a Hold rating. According to MarketBeat.com, the consensus rating stands at “Moderate Buy,” with a consensus target price of approximately $161.21.
As of the latest trading session on Friday, shares of Lam Research (NASDAQ: LRCX) opened at $177.24. The company boasts a market capitalization of $222.62 billion and exhibits a price-to-earnings ratio of 39.04. Its stock has demonstrated significant volatility, with a one-year low of $56.32 and a high of $177.56.
Quarterly Earnings and Future Guidance
Lam Research released its quarterly earnings data on October 22, reporting earnings per share (EPS) of $1.26, surpassing analysts’ expectations of $1.22 by $0.04. The company recorded revenue of $5.32 billion for the quarter, exceeding consensus estimates of $5.23 billion. This marks a year-over-year revenue increase of 27.7%, reflecting strong demand for its semiconductor manufacturing equipment.
Looking ahead, Lam Research has set its guidance for Q2 2026 at an EPS range of $1.050 to $1.250. Analysts predict that the company will achieve an average EPS of $3.71 for the current fiscal year.
In addition to strong earnings, Lam Research announced a quarterly dividend of $0.26 per share, scheduled to be paid on January 7, 2024. Shareholders of record on December 3 will receive this dividend, which translates to an annualized payout of $1.04 and a yield of 0.6%.
Insider Transactions and Company Overview
Recent insider activity at Lam Research has also garnered attention. Chief Financial Officer Douglas R. Bettinger sold 40,080 shares on November 14 at an average price of $150.60, resulting in a total transaction value of approximately $6.04 million. Following the sale, he retains 987,237 shares valued at about $148.68 million. Additionally, Director Bethany Mayer sold 1,298 shares on November 3 for around $207,667.
Lam Research Corporation, founded in 1980 and headquartered in Fremont, California, serves as a global supplier of wafer fabrication equipment and services to the semiconductor industry. The firm specializes in developing systems for various stages of semiconductor production, including thin film deposition and plasma etch technologies.
As demand for advanced semiconductor technology continues to grow, Lam Research remains well-positioned to capitalize on emerging trends in the industry.
