Lam Research (NASDAQ:LRCX) Trading Down 9.8% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 9.8% during mid-day trading on Friday . The company traded as low as $302.74 and last traded at $303.28. Approximately 13,220,670 shares changed hands during trading, an increase of 23% from the average daily volume of 10,774,810 shares. The stock had previously closed at $336.41.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on LRCX. B. Riley Financial increased their price target on Lam Research from $350.00 to $375.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. Bank of America boosted their price objective on Lam Research from $285.00 to $330.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. The Goldman Sachs Group reiterated a “buy” rating and issued a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Citigroup reissued a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of Lam Research in a research report on Thursday, April 23rd. Finally, Stifel Nicolaus boosted their price target on shares of Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Twenty-seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $303.30.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The firm has a market capitalization of $379.27 billion, a price-to-earnings ratio of 57.22, a PEG ratio of 2.85 and a beta of 1.85. The firm’s fifty day moving average is $271.83 and its 200 day moving average is $226.18.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. During the same quarter in the prior year, the business earned $1.04 EPS. The company’s revenue for the quarter was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, analysts predict that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th will be paid a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.3%. Lam Research’s dividend payout ratio is 19.62%.

Insiders Place Their Bets

In related news, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction on Monday, June 1st. The stock was sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the sale, the senior vice president owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the company’s stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the transaction, the insider directly owned 53,205 shares in the company, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 31,839 shares of company stock valued at $8,561,667. Insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its position in shares of Lam Research by 0.3% in the third quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock worth $17,537,447,000 after buying an additional 364,949 shares during the last quarter. State Street Corp increased its holdings in shares of Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock valued at $8,024,684,000 after acquiring an additional 265,805 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Lam Research by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock valued at $5,764,117,000 after acquiring an additional 126,613 shares in the last quarter. Invesco Ltd. raised its stake in shares of Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock valued at $3,906,559,000 after acquiring an additional 1,638,406 shares in the last quarter. Finally, Norges Bank acquired a new stake in Lam Research in the 4th quarter worth approximately $3,645,427,000. 84.61% of the stock is owned by institutional investors.

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.