Murphy Pohlad Asset Management LLC has acquired a new stake in Lam Research Corporation, investing approximately $205,000 in the semiconductor company during the second quarter of 2023. The firm purchased 2,105 shares of Lam Research, as disclosed in a recent filing with the Securities and Exchange Commission (SEC).
This investment follows a trend among institutional investors, with several firms adjusting their positions in Lam Research. Notably, IMG Wealth Management Inc. bought shares valued at around $26,000, while REAP Financial Group LLC invested approximately $31,000. Additionally, 1 North Wealth Services LLC and Rossby Financial LLC each acquired stakes worth $36,000 and $37,000, respectively, in the first quarter of 2023. Currently, hedge funds and institutional investors hold 84.61% of Lam Research’s stock.
Insider Transactions Provide Insights
Recent insider trading activity at Lam Research has attracted attention. On October 13, 2023, Senior Vice President Vahid Vahedi sold 52,190 shares at an average price of $138.90, totaling approximately $7.25 million. Following this transaction, Vahedi retains 251,047 shares, valued at around $34.87 million, reflecting a 17.21% decrease in his position.
Additionally, insider Ava Harter sold 9,010 shares on October 27, 2023, at an average price of $157.47, resulting in a transaction amounting to approximately $1.42 million. Post-sale, Harter holds 56,786 shares, valued at about $8.94 million, marking a 13.69% reduction in her holdings. Currently, insiders own 0.31% of the company’s stock.
Lam Research Reports Strong Earnings
Lam Research recently announced its quarterly earnings on October 22, 2023. The company reported earnings of $1.26 per share (EPS), surpassing the consensus estimate of $1.22 by $0.04. The firm achieved a net margin of 29.66% and a return on equity of 60.60%. Revenue for the quarter stood at $5.32 billion, exceeding analysts’ expectations of $5.23 billion. This represents a substantial 27.7% year-over-year increase, compared to $0.86 EPS recorded in the same quarter last year. Lam Research has projected its Q2 2026 guidance to be between $1.050 and $1.250 EPS.
The company also recently declared a quarterly dividend of $0.26 per share, up from $0.23 in the previous quarter. This dividend, paid on October 15, 2023, reflects an annualized amount of $1.04 and a yield of 0.6%. The current dividend payout ratio stands at 22.91%.
Analysts Remain Positive
Lam Research has garnered attention from various research analysts, with notable price target adjustments. On October 23, 2023, Stifel Nicolaus set a price target of $160.00 and issued a “buy” rating. Meanwhile, JPMorgan Chase & Co. raised its price target from $113.00 to $165.00, also assigning an “overweight” rating. New Street Research increased its price objective from $105.00 to $140.00 with a “neutral” rating, while Cantor Fitzgerald maintained an “overweight” rating with a target of $170.00. Analysts currently rate Lam Research with a mix of ratings, including one “strong buy,” twenty-six “buy,” and nine “hold” ratings. The consensus target price stands at $148.54 according to MarketBeat.
Lam Research Corporation is known for its design, manufacturing, and servicing of semiconductor processing equipment used in integrated circuit fabrication. The company’s product range includes systems for tungsten metallization, electrochemical deposition for copper interconnects, and ultraviolet thermal processing.
With a growing investment interest and positive analyst outlook, Lam Research continues to be a key player in the semiconductor industry.
