Jefferies Financial Group Increases Stake in Lam Research by 164%

Jefferies Financial Group Inc. significantly expanded its investment in Lam Research Corporation (NASDAQ: LRCX) during the second quarter of 2023, increasing its stake by a remarkable 164.3%. The firm now holds 15,033 shares of the semiconductor company, after acquiring an additional 9,345 shares in the quarter. As of the end of this reporting period, Jefferies’ holdings in Lam Research were 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 shares to 75,250, valued at $7.33 million. Empowered Funds LLC increased its holdings by 10.5% in the first quarter, now owning 187,472 shares worth around $13.63 million. New investments have been made by Genus Capital Management Inc., which purchased shares valued at $14.48 million, and Horizon Bancorp Inc., which acquired a stake worth about $389,000. Cookson Peirce & Co. Inc. also entered the market with a stake valued at approximately $607,000. Overall, institutional investors and hedge funds own 84.61% of Lam Research’s stock.

Market Performance and Dividend Announcements

On Thursday, shares of Lam Research opened at $155.14. The company boasts a market capitalization of $194.86 billion, a price-to-earnings (P/E) ratio of 34.17, and a beta of 1.87. Over the past year, Lam Research’s stock has fluctuated significantly, with a fifty-two week low of $56.32 and a high of $167.15. The firm maintains a quick ratio of 1.60, a current ratio of 2.21, and a debt-to-equity ratio of 0.37. The company’s 50-day moving average price stands at $146.09, while its 200-day moving average is $113.79.

In addition to its robust stock performance, Lam Research announced a quarterly dividend of $0.26 per share, which will be paid on January 7, 2024. Shareholders of record as of December 3, 2023 will receive this dividend, which translates to an annualized total of $1.04 and a yield of 0.7%. The company’s current payout ratio is 22.91%.

Insider Trading Activity

Recent insider transactions have seen notable activity. Ava Harter, an insider at Lam Research, sold 9,010 shares on October 27, 2023, at an average price of $157.47, totaling $1.42 million. After this transaction, Harter holds 56,786 shares valued at approximately $8.94 million, representing a 13.69% reduction in her position. Additionally, Senior Vice President Vahid Vahedi sold 52,190 shares on October 13, 2023, at an average price of $138.90, amounting to $7.25 million. Following this sale, Vahedi retains 251,047 shares valued at around $34.87 million, a decrease of 17.21% in his holdings. In total, insiders have sold 102,608 shares worth $14.92 million in the last quarter, while insiders collectively own 0.31% of the company’s stock.

Brokerages have been actively analyzing Lam Research, with several firms offering their perspectives. Cowen reaffirmed a “buy” rating on the company’s shares in a research note dated October 23, 2023. BNP Paribas Exane raised its price target from $80.00 to $140.00, giving the stock a “neutral” rating. Wall Street Zen downgraded Lam Research from a “buy” to a “hold” rating in a report on November 8, 2023. Wells Fargo & Company increased its target price from $135.00 to $145.00, maintaining an “equal weight” rating, while Stifel Nicolaus set a target at $160.00 with a “buy” rating.

According to data from MarketBeat, the stock is currently rated as a “Moderate Buy” by analysts, with an average consensus price target of $152.17.

Lam Research Corporation specializes in designing, manufacturing, marketing, refurbishing, and servicing semiconductor processing equipment for integrated circuit fabrication. The company’s diverse offerings include ALTUS systems for tungsten metallization, SABRE electrochemical deposition products for copper interconnects, and various thermal processing products.

For those interested in tracking hedge fund investments in Lam Research, Holdings Channel provides updated information on 13F filings and insider trades related to the company.