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Varadarajan Seshasayee, Senior Vice President at Lam Research Corp (NASDAQ:LRCX), executed a significant stock transaction on February 20, 2025, according to a recent SEC filing. The executive sold a total of 110,080 shares of common stock at a price of $90 per share, amounting to approximately $9.9 million. The transaction comes as the $111.36 billion semiconductor equipment maker shows strong momentum, with shares gaining 7.58% in the past week. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions.
The transactions were part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for selling stocks. This sale follows the exercise of stock options where Seshasayee acquired 110,080 shares at prices ranging from $17.675 to $19.007, with a total acquisition cost of about $1.99 million. The company maintains strong financial health with a current ratio of 2.54, indicating robust liquidity.
Following these transactions, Seshasayee holds 179,084 shares directly, including shares subject to unvested restricted stock units. The sales and acquisitions are a regular part of managing equity compensation and do not necessarily indicate any change in the executive’s view of the company’s prospects. The company has demonstrated consistent shareholder returns, maintaining dividend payments for 12 consecutive years with 15% dividend growth in the last year. For deeper insights into LRCX’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Lam Research has made significant strides with its financial and strategic outlook, capturing the attention of several analyst firms. The company presented its updated financial model for 2028, targeting revenues between $25-27 billion and non-GAAP earnings per share (EPS) of $6.00-7.00, as highlighted during its Investor Day. Analysts from Stifel reiterated their Buy rating with a $100 price target, emphasizing the company’s growth potential in advanced technologies like NAND and Gate-All-Around logic transistors. Similarly, Cantor Fitzgerald maintained an Overweight rating and a $100 price target, noting Lam’s strategic market share expansion and technological advancements.
Meanwhile, TD Cowen raised its price target for Lam Research to $110, maintaining a Buy rating due to the company’s strong outlook in Atomic Layer Deposition and conductor etch technologies. Susquehanna upgraded Lam Research from Neutral to Positive, significantly increasing the price target to $125, driven by the company’s strategic expansion and potential benefits from Samsung (KS:005930)’s Memory business recovery. KeyBanc also adjusted its price target to $105, maintaining an Overweight rating, citing Lam’s strategic plan to double revenue and EPS by 2028 as a key factor. These developments reflect a broad consensus among analysts on Lam Research’s potential for growth and market share gains in the semiconductor equipment industry.
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