Zacks Research Downgrades Lam Research (NASDAQ:LRCX) to Hold

Lam Research (NASDAQ:LRCX) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Mizuho set a $265.00 target price on Lam Research in a research report on Wednesday, January 28th. Evercore set a $275.00 price objective on Lam Research in a report on Thursday, January 29th. Oppenheimer reaffirmed an “outperform” rating and issued a $265.00 price target on shares of Lam Research in a report on Thursday, January 29th. Stifel Nicolaus lifted their price target on Lam Research from $250.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Finally, Argus lifted their price target on Lam Research from $175.00 to $280.00 in a report on Tuesday, February 3rd. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $245.54.

Lam Research Price Performance

NASDAQ LRCX opened at $224.35 on Monday. The company has a 50 day simple moving average of $226.69 and a 200-day simple moving average of $187.12. 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 capitalization of $280.16 billion, a price-to-earnings ratio of 45.97, a price-to-earnings-growth ratio of 2.35 and a beta of 1.78. Lam Research has a 52-week low of $58.74 and a 52-week high of $256.68.

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

Insider Transactions at Lam Research

In related news, CFO Douglas R. Bettinger sold 50,057 shares of the business’s 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 completion of the transaction, the chief financial officer directly owned 1,081,705 shares in the company, valued at approximately $242,334,371.15. The trade was a 4.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ava Harter sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $232.50, for a total value of $930,000.00. Following the transaction, the insider directly owned 54,705 shares of the company’s stock, valued at approximately $12,718,912.50. This trade represents a 6.81% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 130,886 shares of company stock worth $29,658,802. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

A number of hedge funds have recently added to or reduced their stakes in LRCX. Brighton Jones LLC increased its holdings in Lam Research by 1,032.4% in the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock worth $1,025,000 after purchasing an additional 12,936 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of Lam Research during the first quarter valued at approximately $239,000. Brown Advisory Inc. increased its holdings in shares of Lam Research by 1.1% during the second quarter. Brown Advisory Inc. now owns 34,983 shares of the semiconductor company’s stock valued at $3,405,000 after acquiring an additional 370 shares in the last quarter. Jump Financial LLC increased its holdings in shares of Lam Research by 104.6% during the second quarter. Jump Financial LLC now owns 46,338 shares of the semiconductor company’s stock valued at $4,511,000 after acquiring an additional 23,686 shares in the last quarter. Finally, Gabelli Funds LLC bought a new stake in shares of Lam Research during the second quarter valued at approximately $253,000. 84.61% of the stock is currently owned by institutional investors.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Recent market writeups note LRCX outpaced the market today, reflecting bullish momentum after back‑to‑back beats and continued revenue strength. Why Lam Research (LRCX) Outpaced the Stock Market Today
• Positive Sentiment: Systems revenue growth tied to AI chip demand remains a key growth driver — Zacks highlights a meaningful uptick in systems sales as WFE spending accelerates. AI Boom Aids LRCX’s Systems Revenue Growth
• Positive Sentiment: Profile pieces call LRCX a “Bull of the Day,” citing defensible tech and positioning among top AI‑chip equipment suppliers — supporting investor confidence in longer‑term secular demand. Bull of the Day: Lam Research (LRCX)
• Positive Sentiment: Analyst and hedge‑fund sentiment is skewed bullish: 24 of 28 analysts covering LRCX had Buy/Outperform calls in recent data, reinforcing demand for the stock among discretionary funds. Lam Research (LRCX) Fuels Bullish Sentiment Despite Supply Chain Risks
• Positive Sentiment: Morgan Stanley raised its price target to $260 (from $254) — a sign analysts see upside even as the firm retained an equal‑weight stance. That lift to PT can provide near‑term technical and sentiment support. Morgan Stanley adjusts price target on Lam Research to $260
• Neutral Sentiment: Upcoming catalyst — Lam reports fiscal Q3 2026 results on April 22 after the close. Recent trends (four straight beats) set a high bar; the print will likely drive short‑term volatility. Dear Lam Research Investors, Mark Your Calendars for April 22
• Neutral Sentiment: Longer‑term analyst pieces (e.g., The Motley Fool) debate whether LRCX remains a top buy for multi‑year returns; useful for longer‑horizon investors but less immediately market‑moving. Is Lam Research Stock a Smart Investment for 2025?
• Negative Sentiment: Coverage flags supply‑chain and geopolitical risks that could dampen execution or timing of orders; investors should weigh those risks ahead of the April 22 print. Lam Research (LRCX) Fuels Bullish Sentiment Despite Supply Chain Risks

About Lam Research

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.