Lam Research Corporation (NASDAQ: LRCX) experienced a decline in its share price, falling by 1.7% on Thursday, October 22, 2023. The stock reached a low of $160.19 before closing at $162.19, down from the previous day’s close of $165.05. A total of 9,593,920 shares were traded, marking a 19% drop in volume compared to the average trading volume of 11,863,777 shares.
Analysts Adjust Price Targets
Recent research reports have varied in their outlook for Lam Research. Citigroup increased its price target from $120.00 to $175.00 and assigned a “buy” rating. Meanwhile, Raymond James Financial also raised its target from $90.00 to $110.00, giving the company an “outperform” rating. HSBC Global Research upgraded its rating to “hold” on September 30, while Evercore ISI boosted its price objective from $115.00 to $170.00 on the same day as Citigroup’s report.
Overall, one analyst has rated the stock as a Strong Buy, while twenty-six others have given it a Buy rating, and nine analysts have issued a Hold rating. According to data from MarketBeat, Lam Research holds an average rating of “Moderate Buy” and a consensus target price of $148.54.
Financial Performance and Dividend Announcement
On October 22, Lam Research reported earnings of $1.26 per share for the quarter, exceeding the consensus estimate of $1.22 by $0.04. The company reported revenue of $5.32 billion, surpassing analyst expectations of $5.23 billion. This marked a 27.7% increase in revenue compared to the same quarter last year, where it earned $0.86 per share.
Looking ahead, Lam Research has provided guidance for Q2 2026, anticipating earnings per share between $1.050 and $1.250. Analysts predict that the company will post earnings of $3.71 per share for the current fiscal year.
Additionally, the company announced a quarterly dividend of $0.26 per share, payable on January 7, 2024, to investors of record as of December 3, 2023. This reflects an annualized dividend of $1.04 and a yield of 0.7%, with a current dividend payout ratio of 22.91%.
Insider Trades and Institutional Activity
In related news, senior vice president Vahid Vahedi sold 52,190 shares on October 13 for an average price of $138.90, totaling approximately $7.25 million. After this transaction, Vahedi owns 251,047 shares valued at around $34.87 million, indicating a 17.21% decrease in his ownership.
Another insider, Ava Harter, sold 9,010 shares on October 27 at an average price of $157.47, resulting in a total transaction of approximately $1.42 million. This sale reduced her position by 13.69%.
Over the past three months, insiders have sold a cumulative total of 62,498 shares worth about $8.88 million, with corporate insiders holding 0.31% of the company’s stock.
A number of institutional investors have also made significant changes to their holdings in Lam Research. Vanguard Group Inc. raised its stake by 0.3% during the third quarter, now owning 130,974,214 shares valued at approximately $17.54 billion. State Street Corp increased its holdings by 1.1%, acquiring an additional 629,666 shares. JPMorgan Chase & Co. boosted its holdings by 14.4%, now owning 40,622,437 shares worth about $3.95 billion.
Geode Capital Management LLC and Norges Bank also increased their stakes significantly, with hedge funds and institutional investors collectively owning 84.61% of Lam Research’s shares.
Lam Research Corporation specializes in designing, manufacturing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. The company plays a vital role in the semiconductor industry, providing advanced technology solutions that support various applications.
