Lam Research (NASDAQ:LRCX) Issues Quarterly Earnings Results

Lam Research (NASDAQ:LRCX) announced its quarterly earnings results on Wednesday. The semiconductor company reported $8.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.58 by $0.56, Zacks reports. Lam Research had a return on equity of 48.71% and a net margin of 25.68%. The business had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.82 billion. During the same quarter last year, the firm posted $5.98 EPS. The company’s quarterly revenue was up 20.7% on a year-over-year basis. Lam Research updated its Q1 guidance to $7.25-8.75 EPS and its Q1 2025 guidance to 7.250-8.750 EPS.

Lam Research Trading Down 8.1 %

Shares of NASDAQ:LRCX traded down $67.33 during midday trading on Friday, hitting $763.00. 2,707,252 shares of the stock were exchanged, compared to its average volume of 1,248,138. The stock has a market capitalization of $99.75 billion, a price-to-earnings ratio of 28.06, a P/E/G ratio of 2.41 and a beta of 1.48. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 2.97. The business’s 50-day moving average price is $999.84 and its 200 day moving average price is $944.73. Lam Research has a 12 month low of $574.42 and a 12 month high of $1,130.00.

Lam Research shares are going to split on the morning of Thursday, October 3rd. The 10-1 split was announced on Tuesday, May 21st. The newly created shares will be issued to shareholders after the closing bell on Wednesday, October 2nd.

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 10th. Stockholders of record on Tuesday, June 18th were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.05%. The ex-dividend date of this dividend was Tuesday, June 18th. Lam Research’s dividend payout ratio (DPR) is currently 29.42%.

Insider Transactions at Lam Research

In related news, CEO Timothy Archer sold 9,650 shares of Lam Research stock in a transaction that occurred on Friday, June 28th. The stock was sold at an average price of $1,070.39, for a total value of $10,329,263.50. Following the transaction, the chief executive officer now directly owns 84,639 shares of the company’s stock, valued at $90,596,739.21. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, CEO Timothy Archer sold 9,650 shares of Lam Research stock in a transaction that occurred on Friday, June 28th. The stock was sold at an average price of $1,070.39, for a total value of $10,329,263.50. Following the transaction, the chief executive officer now directly owns 84,639 shares of the company’s stock, valued at $90,596,739.21. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Christina Correia sold 647 shares of Lam Research stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $1,062.26, for a total value of $687,282.22. Following the completion of the transaction, the chief accounting officer now directly owns 4,914 shares in the company, valued at $5,219,945.64. The disclosure for this sale can be found here. Over the last three months, insiders have sold 16,326 shares of company stock worth $17,383,715. Insiders own 0.32% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on LRCX shares. Wells Fargo & Company dropped their target price on Lam Research from $1,100.00 to $1,000.00 and set an “equal weight” rating for the company in a report on Thursday. Mizuho lifted their target price on Lam Research from $935.00 to $960.00 and gave the stock a “buy” rating in a report on Thursday, April 25th. B. Riley lifted their target price on Lam Research from $1,130.00 to $1,325.00 and gave the stock a “buy” rating in a report on Thursday, June 20th. Cantor Fitzgerald reissued a “neutral” rating and set a $1,200.00 target price on shares of Lam Research in a report on Thursday. Finally, StockNews.com downgraded Lam Research from a “buy” rating to a “hold” rating in a report on Friday, July 26th. Six investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,007.85.

Lam Research announced that its board has authorized a stock buyback program on Tuesday, May 21st that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the semiconductor company to repurchase up to 8.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Lam Research Company Profile

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.