Lam Research Co. (NASDAQ:LRCX) Increases Dividend to $2.30 Per Share

Lam Research Co. (NASDAQ:LRCX) declared a quarterly dividend on Wednesday, August 28th, RTT News reports. Stockholders of record on Tuesday, September 17th will be paid a dividend of 2.30 per share by the semiconductor company on Tuesday, October 1st. This represents a $9.20 dividend on an annualized basis and a dividend yield of 1.20%. The ex-dividend date of this dividend is Tuesday, September 17th. This is an increase from Lam Research’s previous quarterly dividend of $2.00.

Lam Research has raised its dividend by an average of 15.0% annually over the last three years. Lam Research has a dividend payout ratio of 25.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Lam Research to earn $44.49 per share next year, which means the company should continue to be able to cover its $9.20 annual dividend with an expected future payout ratio of 20.7%.

Lam Research Stock Performance

Shares of Lam Research stock opened at $769.72 on Monday. The stock’s fifty day simple moving average is $868.98 and its 200 day simple moving average is $932.18. The company has a current ratio of 2.97, a quick ratio of 2.00 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $100.63 billion, a PE ratio of 28.31, a PEG ratio of 1.48 and a beta of 1.48. Lam Research has a 12 month low of $574.42 and a 12 month high of $1,130.00.

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

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 31st. The semiconductor company reported $8.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.58 by $0.56. The business had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.82 billion. Lam Research had a return on equity of 48.71% and a net margin of 25.68%. Lam Research’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.98 EPS. On average, research analysts predict that Lam Research will post 35.2 EPS for the current year.

Lam Research announced that its Board of Directors has approved a share repurchase program on Tuesday, May 21st that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 8.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Lam Research

In other news, CEO Timothy Archer sold 9,650 shares of Lam Research stock in a transaction on Friday, June 28th. The stock was sold at an average price of $1,070.39, for a total transaction of $10,329,263.50. Following the completion of the sale, the chief executive officer now 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 Securities & Exchange Commission, which can be accessed through this link. In other news, CEO Timothy Archer sold 9,650 shares of the firm’s stock in a transaction that occurred on Friday, June 28th. The shares were sold at an average price of $1,070.39, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Neil J. Fernandes sold 4,409 shares of the business’s stock in a transaction that occurred on Thursday, June 27th. The shares were sold at an average price of $1,055.76, for a total value of $4,654,845.84. Following the completion of the sale, the senior vice president now owns 6,857 shares of the company’s stock, valued at $7,239,346.32. The disclosure for this sale can be found here. Insiders sold 16,326 shares of company stock worth $17,383,715 in the last ninety days. 0.32% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on LRCX shares. Citigroup dropped their price target on Lam Research from $1,025.00 to $990.00 and set a “buy” rating on the stock in a research note on Monday, August 5th. Raymond James raised their price target on shares of Lam Research from $950.00 to $1,060.00 and gave the stock an “outperform” rating in a research note on Friday, June 7th. TD Cowen increased their target price on shares of Lam Research from $1,000.00 to $1,050.00 and gave the stock a “buy” rating in a report on Thursday, August 1st. StockNews.com lowered shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Friday, July 26th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on Lam Research from $1,100.00 to $950.00 and set a “buy” rating for the company in a report on Thursday, August 1st. Six research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,015.63.

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.