Lam Research (NASDAQ:LRCX) Shares Down 7.2% After Insider Selling

Shares of Lam Research Corporation (NASDAQ:LRCX) dropped 7.2% during mid-day trading on Friday following insider selling activity. The company traded as low as $198.45 and last traded at $199.33. Approximately 13,387,498 shares were traded during trading, an increase of 9% from the average daily volume of 12,236,443 shares. The stock had previously closed at $214.68.

Specifically, insider Ava Harter sold 1,500 shares of Lam Research stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $222.66, for a total value of $333,990.00. Following the completion of the sale, the insider directly owned 53,205 shares in the company, valued at approximately $11,846,625.30. The trade was a 2.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the sale, the chief financial officer directly owned 1,081,705 shares in the company, valued at $242,334,371.15. This represents a 4.42% decrease in their position. The SEC filing for this sale provides additional information. In other news, insider Ava Harter sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $232.50, for a total transaction of $930,000.00. Following the completion of the sale, the insider owned 54,705 shares of the company’s stock, valued at approximately $12,718,912.50. This represents a 6.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Lam Research in a research note on Monday, December 29th. Citic Securities lifted their target price on Lam Research from $165.00 to $275.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Zacks Research raised Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, January 20th. Needham & Company LLC lifted their price target on shares of Lam Research from $250.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Finally, Morgan Stanley raised their target price on shares of Lam Research from $244.00 to $254.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $245.19.

Trending Headlines about Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Wall‑Street price‑target consensus implies ~25% upside, supporting a constructive forward view driven by earnings‑estimate revisions and sustained foundry/AI demand. Read More.
• Positive Sentiment: Technicals are supportive in the short term — LRCX recently crossed above its 50‑day moving average and hit an intraday high after a trading signal, which can attract momentum buyers. Read More. Read More.
• Positive Sentiment: Fundamental backdrop remains solid: recent quarterly beat, strong margins and exposure to wafer‑processing demand for AI/advanced nodes underpin the longer‑term bull case and institutional interest. Read More.
• Neutral Sentiment: Media roundups and “too late to buy?” coverage are raising visibility and debate over valuation after a large multi‑quarter run; useful context but not an immediate catalyst. Read More. Read More.
• Negative Sentiment: Large insider selling is a clear near‑term negative for sentiment — CFO Douglas Bettinger sold ~50,057 shares (~$11M) and other insiders (including Ava Harter) reported additional sales; investors often interpret big, clustered sales as a signal to reduce exposure even if trades are for diversification or tax planning. Read More. Read More.
• Negative Sentiment: Sectorwide risk from geopolitics and rising energy costs: reports flag higher operating costs for customer fabs and potential supply‑chain disruptions for critical chipmaking materials — these near‑term worries have been a primary driver of the recent pullback. Read More. Read More.

Lam Research Trading Down 7.2%

The firm has a fifty day simple moving average of $220.52 and a 200-day simple moving average of $168.05. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.61. The firm has a market cap of $248.92 billion, a P/E ratio of 40.85, a price-to-earnings-growth ratio of 2.40 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.10. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The firm had revenue of $5.34 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter in the prior year, the company posted $0.91 earnings per share. The business’s revenue was up 22.1% on a year-over-year basis. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, equities research analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 4th will be paid a $0.26 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $1.04 annualized dividend and a dividend yield of 0.5%. Lam Research’s dividend payout ratio is presently 21.31%.

Hedge Funds Weigh In On Lam Research

Several hedge funds have recently modified their holdings of the company. Norges Bank bought a new position in shares of Lam Research in the 4th quarter worth $3,645,427,000. Price T Rowe Associates Inc. MD lifted its position in Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock valued at $2,344,347,000 after purchasing an additional 10,666,540 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Lam Research by 781.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company’s stock worth $1,518,542,000 after purchasing an additional 10,053,978 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Lam Research by 14.4% during the second quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock valued at $3,954,188,000 after buying an additional 5,102,589 shares during the period. Finally, Franklin Resources Inc. grew its position in shares of Lam Research by 57.0% in the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company’s stock worth $1,730,724,000 after buying an additional 3,671,073 shares during the period. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.