Jefferies Financial Group Boosts Stake in Lam Research by 164.3%

Jefferies Financial Group Inc. has significantly increased its stake in Lam Research Corporation (NASDAQ: LRCX) by an impressive 164.3% during the second quarter of 2023. According to Holdings Channel, the firm now holds 15,033 shares of the semiconductor manufacturing company following the acquisition of an additional 9,345 shares. As of the end of the most recent reporting period, Jefferies’ holdings in Lam Research are valued at approximately $1.46 million.

Other institutional investors have also adjusted their positions in Lam Research. Sava Infond d.o.o. raised its stake by 3.1%, bringing its total ownership to 75,250 shares worth around $7.33 million after acquiring 2,250 additional shares. Empowered Funds LLC increased its holdings by 10.5% in the first quarter, now owning 187,472 shares valued at $13.63 million. Additionally, Genus Capital Management Inc. entered a new position in the second quarter valued at $14.48 million, while Horizon Bancorp Inc. and Cookson Peirce & Co. Inc. made new investments worth approximately $389,000 and $607,000, respectively. Overall, institutional investors own 84.61% of Lam Research’s stock.

Stock Performance and Financial Position

On Thursday, shares of Lam Research opened at $155.14. The company boasts a market capitalization of $194.86 billion, with a price-to-earnings (P/E) ratio of 34.17 and a price/earnings to growth (PEG) ratio of 1.68. Lam Research’s stock has experienced a fifty-two week low of $56.32 and a high of $167.15. The firm maintains a quick ratio of 1.60 and a current ratio of 2.21, with a low debt-to-equity ratio of 0.37. Its 50-day and 200-day moving average prices stand at $146.09 and $113.79, respectively.

Recently, Lam Research announced a quarterly dividend of $0.26 per share, set to be paid on January 7, 2024, to investors on record as of December 3, 2023. This dividend represents an annualized yield of 0.7% and a payout ratio of 22.91%.

Insider Trading Activity

In related news, insider Ava Harter sold 9,010 shares on October 27, 2023, at an average price of $157.47, totaling approximately $1.42 million. Following this transaction, Harter retained 56,786 shares, valued at about $8.94 million, representing a 13.69% reduction in her holdings. Another significant transaction occurred when Senior Vice President Vahid Vahedi sold 52,190 shares on October 13, 2023, at an average price of $138.90, for a total of $7.25 million. Vahedi now holds 251,047 shares, valued at approximately $34.87 million. In total, insiders sold 102,608 shares worth nearly $14.92 million in the last quarter, with company insiders owning 0.31% of the stock.

Analyst Ratings and Market Outlook

Wall Street analysts have been active in providing ratings for Lam Research. Cowen reaffirmed a “buy” rating, while BNP Paribas Exane raised its price target from $80.00 to $140.00, giving the stock a “neutral” rating. Wells Fargo & Company increased their target price from $135.00 to $145.00, maintaining an “equal weight” rating. Stifel Nicolaus also set a target price of $160.00, endorsing a “buy” rating. Overall, the consensus among analysts is positive, with 26 analysts rating the stock as a Buy and 10 analysts recommending a Hold. According to MarketBeat, the average rating is “Moderate Buy” with a consensus price target of $152.17.

Lam Research Corporation plays a crucial role in the semiconductor industry, designing and manufacturing equipment essential for integrated circuit fabrication. The company’s product offerings include advanced systems for various semiconductor manufacturing applications, underscoring its significance in the tech sector.