Erste Group Bank Expects Stronger Earnings for Lam Research

Lam Research Corporation (NASDAQ:LRCX) – Equities researchers at Erste Group Bank raised their FY2028 EPS estimates for shares of Lam Research in a research report issued to clients and investors on Friday, September 18th. Erste Group Bank analyst S. Lingnau now anticipates that the semiconductor company will post earnings of $11.68 per share for the year, up from their previous estimate of $11.43. The consensus estimate for Lam Research’s current full-year earnings is $9.33 per share.

Other equities analysts have also issued research reports about the company. Barclays reiterated an “overweight” rating and issued a $335.00 target price (up from $275.00) on shares of Lam Research in a research note on Thursday, June 11th. Wells Fargo & Company reiterated an “overweight” rating and set a $350.00 price objective (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. TD Cowen reissued a “buy” rating and set a $400.00 target price (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. HSBC restated a “hold” rating and issued a $333.00 target price on shares of Lam Research in a research note on Monday, July 27th. Finally, UBS Group cut their price target on shares of Lam Research from $435.00 to $425.00 and set a “buy” rating on the stock in a report on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $361.81.

Lam Research Trading Up 2.9%

Shares of NASDAQ:LRCX opened at $310.96 on Monday. The company has a market capitalization of $389.11 billion, a PE ratio of 53.99, a P/E/G ratio of 1.20 and a beta of 1.85. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. Lam Research has a 12-month low of $125.02 and a 12-month high of $438.50. The business’s fifty day simple moving average is $305.28 and its 200-day simple moving average is $296.62.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. Lam Research’s revenue was up 30.0% compared to the same quarter last year. During the same period last year, the company posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS.

Institutional Investors Weigh In On Lam Research

Hedge funds and other institutional investors have recently made changes to their positions in the company. Andra AP fonden lifted its stake in shares of Lam Research by 6.0% in the 2nd quarter. Andra AP fonden now owns 189,539 shares of the semiconductor company’s stock valued at $82,133,000 after purchasing an additional 10,800 shares during the period. State Street Corp grew its position in Lam Research by 2.6% during the second quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock valued at $26,320,468,000 after buying an additional 1,545,830 shares during the period. Security National Bank of Sioux City Iowa IA grew its position in Lam Research by 24.9% during the second quarter. Security National Bank of Sioux City Iowa IA now owns 15,734 shares of the semiconductor company’s stock valued at $6,818,000 after buying an additional 3,140 shares during the period. Wellington Altus USA Inc. increased its holdings in Lam Research by 39.3% in the second quarter. Wellington Altus USA Inc. now owns 1,686 shares of the semiconductor company’s stock valued at $731,000 after buying an additional 476 shares in the last quarter. Finally, Smith Chas P & Associates PA Cpas acquired a new position in shares of Lam Research in the second quarter worth about $280,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Insider Buying and Selling at Lam Research

In other news, Director Abhijit Y. Talwalkar sold 18,282 shares of the company’s stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director owned 87,142 shares in the company, valued at $29,192,570. This represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was 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 in the company, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 32,839 shares of company stock worth $10,644,740. Insiders own 0.31% of the company’s stock.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be issued a $0.33 dividend. The ex-dividend date of this dividend is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a yield of 0.4%. Lam Research’s dividend payout ratio is currently 18.06%.

More Lam Research News

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

• Positive Sentiment: Lam Research is positioned to benefit from rising wafer-fabrication-equipment spending tied to artificial intelligence. Its latest outlook called for September-quarter revenue of approximately $8.1 billion—more than 20% above the prior quarter—and industry spending in the low-$150 billion range for 2026. Why Lam Research Stock Is Up Today
• Positive Sentiment: The planned launch of the REX AI Chipmaking ETF (CHIP) is increasing investor focus on the equipment suppliers that manufacture the machinery used to produce AI chips. Lam Research is a major beneficiary of this broader “picks-and-shovels” investment theme. New ETF Bets on the Machinery Behind AI Chipmaking
• Positive Sentiment: Analysts remain constructive: Erste Group raised its fiscal 2028 EPS forecast, while recent price targets have generally remained above the current trading range. This reflects confidence that AI demand can support growth through 2027 and beyond. Lam Research FY2028 EPS Forecast Boosted by Erste Group Bank
• Neutral Sentiment: Lam Research is targeting mid-40% operating margins over the longer term, supported by revenue growth, AI demand and higher-margin services. The goal could improve earnings power, but it depends on sustained demand and successful execution. LRCX Eyes Mid-40s Operating Margin
• Negative Sentiment: Reported insider-trading data shows substantial selling by executives and other insiders over the past six months, with no reported open-market purchases. While such sales may reflect diversification or scheduled transactions, they could temper investor sentiment.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.