Lam Research (NASDAQ:LRCX) Stock Rating Upgraded by Wall Street Zen

Lam Research (NASDAQ:LRCX) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other research firms have also issued reports on LRCX. Stifel Nicolaus raised their price target on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $375.00 price objective on shares of Lam Research in a research note on Monday, October 19th. Bank of America reaffirmed a “buy” rating and set a $345.00 price objective on shares of Lam Research in a research note on Thursday. Berenberg Bank set a $420.00 price objective on Lam Research in a research report on Wednesday, September 9th. Finally, Morgan Stanley set a $339.00 target price on Lam Research and gave the company an “overweight” rating in a research note on Thursday. Twenty-six equities research analysts have rated the stock with a Buy rating and six 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 $354.55.

Lam Research Price Performance

Shares of NASDAQ:LRCX opened at $230.10 on Friday. Lam Research has a 1-year low of $135.50 and a 1-year high of $438.50. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.86. The stock has a market cap of $287.43 billion, a P/E ratio of 34.29, a P/E/G ratio of 0.86 and a beta of 1.85. The firm has a fifty day moving average price of $301.90 and a 200 day moving average price of $309.95.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating analysts’ consensus estimates of $2.18 by $0.02. The company had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. Lam Research’s quarterly revenue was up 54.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.26 earnings per share. Sell-side analysts predict that Lam Research will post 9.48 EPS for the current year.

Insider Transactions at Lam Research

In related news, Director Bethany Mayer sold 9,557 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of large investors have recently added to or reduced their stakes in LRCX. Apollon Wealth Management LLC raised its stake in Lam Research by 6.8% in the 3rd quarter. Apollon Wealth Management LLC now owns 42,378 shares of the semiconductor company’s stock valued at $13,922,000 after purchasing an additional 2,714 shares during the last quarter. Tower View Wealth Management LLC boosted its stake in shares of Lam Research by 4.4% during the 3rd quarter. Tower View Wealth Management LLC now owns 7,603 shares of the semiconductor company’s stock worth $2,498,000 after purchasing an additional 319 shares during the last quarter. Dedeker Financial LLC boosted its stake in shares of Lam Research by 3.2% during the 3rd quarter. Dedeker Financial LLC now owns 3,745 shares of the semiconductor company’s stock worth $1,230,000 after purchasing an additional 116 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in shares of Lam Research by 3.8% during the third quarter. Revolve Wealth Partners LLC now owns 2,222 shares of the semiconductor company’s stock worth $730,000 after buying an additional 82 shares in the last quarter. Finally, Beacon Capital Management LLC grew its holdings in shares of Lam Research by 16.1% during the third quarter. Beacon Capital Management LLC now owns 1,140 shares of the semiconductor company’s stock worth $375,000 after buying an additional 158 shares in the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

More Lam Research News

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

About Lam Research

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.