Analysts Raise Lam Research Targets to $245–$320 After Q1 Beat; Hedge Fund Adds $1.16M Stake
Wallace Hart LLC acquired 8,671 Lam Research shares valued at $1.16 million in Q3, representing 0.9% of its holdings. Following Lam’s Q1 beat of $1.27 EPS on $5.34 billion revenue (up 22.1% YoY), analysts raised price targets to $245 (BofA), $300 (JPMorgan) and $320 (Cantor).
1. Hedge Fund and Institutional Ownership Trends
In the third quarter, Wallace Hart LLC established a new position in Lam Research by acquiring 8,671 shares valued at approximately $1.16 million, making LRCX its 20th largest holding and representing 0.9% of the fund’s portfolio. Over the past two quarters, several other specialist investors initiated stakes: IMG Wealth Management deployed $26,000 in the second quarter, Howard Hughes Medical Institute invested $27,000, Sound Income Strategies committed $41,000, Strategic Wealth Investment Group allocated $29,000, and Tripletail Wealth Management put in $44,000. Institutional and hedge fund ownership now stands at 84.61%, underscoring continued confidence from large-scale investors in Lam Research’s growth prospects.
2. Q1 Fiscal 2026 Performance and Guidance
Lam Research reported first-quarter earnings per share of $1.27, surpassing consensus estimates by $0.10, while generating revenue of $5.34 billion, 2.1% above analyst projections and up 22.1% year-over-year. The company achieved a net margin of 30.22% and a return on equity of 62.81%. For the third quarter of fiscal 2026, management has set earnings guidance in the range of $1.25 to $1.45 per share, and external analysts are forecasting full-year EPS of 3.71, reflecting robust demand for advanced wafer fabrication equipment.
3. Analyst Ratings and Consensus Outlook
Sell-side coverage remains overwhelmingly positive, with 36 analysts providing ratings: one Strong Buy, 28 Buy recommendations and seven Hold opinions. MarketBeat data indicates a consensus rating of Moderate Buy. Recent research notes from major brokerages have all reiterated bullish views and raised their targets—though exact price levels vary, the uniform trend highlights expectations for continued revenue growth driven by advanced-node logic and 3D NAND equipment investments.
4. Insider Activity and Dividend Policy
Chief Financial Officer Douglas R. Bettinger sold 40,080 shares in mid-November, resulting in proceeds of roughly $6.04 million; following the sale, he retains ownership of 987,237 shares. Insider ownership accounts for just 0.31% of the outstanding shares. The board declared a quarterly dividend of $0.26 per share, translating to an annualized payout of $1.04 and representing a 21.31% payout ratio, supporting a modest yield of 0.4% and reflecting confidence in free-cash-flow generation.