UBS Group Cuts Lam Research (NASDAQ:LRCX) Price Target to $425.00

Lam Research (NASDAQ:LRCX) had its price target reduced by UBS Group from $435.00 to $425.00 in a report published on Tuesday, MarketBeat.com reports. UBS Group currently has a buy rating on the semiconductor company’s stock.

A number of other research analysts also recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $320.00 price objective on shares of Lam Research in a research report on Thursday, July 30th. Seaport Research Partners started coverage on Lam Research in a research note on Monday, May 4th. They issued a “buy” rating and a $300.00 price target for the company. Oppenheimer reaffirmed an “outperform” rating and issued a $400.00 price target (up from $330.00) on shares of Lam Research in a report on Monday, June 15th. Raymond James Financial set a $425.00 price target on Lam Research in a research report on Wednesday, June 10th. Finally, TD Cowen reissued a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $358.97.

Lam Research Trading Up 1.5%

Lam Research stock opened at $292.66 on Tuesday. The firm has a market cap of $366.21 billion, a PE ratio of 50.81, a P/E/G ratio of 1.14 and a beta of 1.85. Lam Research has a 12 month low of $97.16 and a 12 month high of $438.50. The stock’s 50 day simple moving average is $322.77 and its two-hundred day simple moving average is $291.28. 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 (NASDAQ:LRCX) last posted its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same period in the previous year, the firm earned $1.33 EPS. The business’s quarterly revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Analysts anticipate that Lam Research will post 9.33 earnings per share for the current year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. This is a boost from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Wednesday, September 23rd. Lam Research’s dividend payout ratio is presently 18.06%.

Insider Transactions at Lam Research

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director owned 199,205 shares in the company, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of Lam Research stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the sale, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. This trade represents a 17.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 77,782 shares of company stock valued at $26,755,370 over the last ninety days. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently modified their holdings of the business. California State Teachers Retirement System raised its holdings in Lam Research by 42,619.5% in the 2nd quarter. California State Teachers Retirement System now owns 821,470,614 shares of the semiconductor company’s stock valued at $355,967,861,000 after acquiring an additional 819,547,672 shares during the last quarter. State Street Corp increased its holdings in shares of Lam Research by 0.4% in the third quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock valued at $8,024,684,000 after purchasing an additional 265,805 shares during the last quarter. Geode Capital Management LLC lifted its position in Lam Research by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock worth $5,764,117,000 after buying an additional 126,613 shares in the last quarter. Invesco Ltd. lifted its position in Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock worth $3,906,559,000 after buying an additional 1,638,406 shares in the last quarter. Finally, Norges Bank acquired a new position in Lam Research during the fourth quarter worth $3,645,427,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Investor coverage continues to identify Lam Research as a beneficiary of AI data-center spending, memory-chip demand and advanced semiconductor manufacturing. Articles point to opportunities across etch, deposition and other wafer-fabrication equipment markets. AI data-center spending article
• Positive Sentiment: Lam’s fundamental momentum remains strong. Its latest quarterly results exceeded analyst expectations for earnings and revenue, with revenue up 30% year over year, and management provided quarterly EPS guidance of $2.00 to $2.30. The company also raised its quarterly dividend from $0.26 to $0.33, supporting shareholder returns. Dividend increase article
• Positive Sentiment: Lam Research was included in growth-at-a-reasonable-price and AI-investment stock screens, indicating that some analysts believe its earnings growth can support the company’s premium valuation. GARP stocks article
• Neutral Sentiment: UBS lowered its Lam Research price target to $425 from $435 but maintained a Buy rating. The reduction signals more measured expectations while the rating still reflects confidence in the company’s long-term prospects. UBS price-target article
• Negative Sentiment: Valuation is a key risk after LRCX’s substantial multiyear rally. Recent commentary says the shares appear fully priced, leaving less room for disappointment and making continued gains dependent on strong execution and earnings growth. Lam Research valuation article
• Negative Sentiment: An insider sold 5,000 shares valued at approximately $1.5 million. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which limits its significance, but it contributed to near-term selling pressure. Insider sale article
• Negative Sentiment: Rising Treasury yields and renewed inflation concerns are weighing on high-multiple semiconductor stocks by reducing the present value of future growth. Exposure to China and the possibility of limited near-term returns add further caution. Market pressure article

Lam Research Company Profile

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.