Norges Bank Acquires 23 Million Shares of Lam Research Co.

Norges Bank has recently made a significant investment by acquiring a new position in shares of Lam Research Co. (NASDAQ:LRCX) during the fourth quarter. According to their latest filing with the Securities and Exchange Commission, the institutional investor purchased a total of 23,005,290 shares of the semiconductor company. This acquisition is valued at around $1.66 billion. By the end of the most recent quarter, Norges Bank owned 1.79% of Lam Research’s total shares.

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Other institutional investors and hedge funds have been partially or fully repositioning their stakes in Lam Research's stocks as well. For example, Financial Perspectives Inc significantly increased its holdings in Lam Research by 908.8% during the fourth quarter, now owning 343 shares valued at $25,000 after adding 309 shares. Fairway Wealth LLC also boosted its stake by 900.0%, bringing its ownership to 340 shares, worth $25,000, following a purchase of 306 shares. Additionally, Atwood & Palmer Inc. and Midwest Capital Advisors LLC both acquired new stakes in Lam Research, each valued at approximately $27,000 during the fourth quarter. Bell Investment Advisors Inc increased its own position by a remarkable 836.6%, resulting in 384 shares valued at $28,000 after an additional acquisition.

Analyst Ratings

Various research firms have recently provided updates regarding Lam Research stock. For instance, on February 20th, Susquehanna upgraded the shares from a "neutral" to a "positive" rating, and the price target was increased from $75.00 to $125.00. Oppenheimer initiated coverage on Lam Research on March 20th, assigning an "outperform" rating with a target of $95.00. KeyCorp also improved its rating from "sector weight" to "overweight," with a target price of $95.00 as of January 17th. However, Wolfe Research lowered its rating from "outperform" to "peer perform" on January 15th. Additionally, Needham & Company LLC reiterated a "buy" rating with a price target of $90.00 on January 30th. Six analysts have recommended holding the stock, while eighteen analysts have a buy rating, suggesting a general positive outlook with an average target price of $98.06 according to MarketBeat.

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Check Out Our Latest Stock Report on Lam Research

Recent Stock Performance

As of Thursday, the shares of Lam Research (LRCX) opened at $76.14. The stock has experienced a 52-week low of $68.87 and a high of $113.00. The company currently boasts a market cap of approximately $97.74 billion, along with a price-to-earnings ratio of 23.13. Their PEG ratio stands at 1.47, and the beta is measured at 1.53. Furthermore, Lam Research shows a debt-to-equity ratio of 0.51, a quick ratio of 1.73, and a current ratio of 2.54. The 50-day moving average price for the stock is $79.75, while the 200-day moving average price is $77.33.

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The last earnings report for Lam Research was released on January 29th. The semiconductor company reported earnings per share (EPS) of $0.91 for the quarter, which exceeded analysts' expectations of $0.87 by $0.04. Lam Research exhibited a net margin of 26.49% along with a substantial return on equity of 51.86%. Analysts are predicting Lam Research Co. to achieve an EPS of 3.71 for the present fiscal year.

Dividend Information

Additionally, Lam Research announced a quarterly dividend scheduled to be paid on April 9th. Shareholders who own shares by March 5th will receive a dividend of $0.23 per share, which amounts to an annualized dividend of $0.92, yielding 1.21%. The company's current dividend payout ratio is at 27.96%.

Management Transactions

In related developments, SVP Seshasayee Varadarajan sold 110,080 shares of Lam Research on February 20th at an average price of $90.00, totaling about $9.91 million. Following this sale, the vice president still holds 179,084 shares, valued at approximately $16.12 million, indicating a 38.07% reduction in their ownership. This information was disclosed in a filing with the SEC.

About Lam Research

Lam Research Corporation is known for the design, manufacture, marketing, refurbishment, and servicing of semiconductor processing equipment utilized in the production of integrated circuits. Their product range includes ALTUS systems for depositing conformal films, SABRE electrochemical deposition products for copper interconnects, SOLA ultraviolet thermal processing products, and VECTOR plasma-enhanced chemical vapor deposition products.

Conclusion

Lam Research continues to attract significant institutional interest from various investors who are increasing their stakes in the company. As analysts offer mixed reviews but generally lean towards a positive rating, Lam Research’s performance in the semiconductor market remains a focal point for many investors. It is essential for potential investors to keep an eye on ongoing developments, including quarterly reports, dividends, and analyst ratings, to make informed decisions.

Investment, Semiconductors, Shares