Lam Research (NASDAQ:LRCX) Shares Down 1.6% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s share price traded down 1.6% during trading on Wednesday . The company traded as low as $318.95 and last traded at $321.80. 14,027,789 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 10,846,966 shares. The stock had previously closed at $327.16.

Trending Headlines about Lam Research

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

• Positive Sentiment: Barclays raised its price target on Lam Research to $335 from $275, keeping an equal weight rating. The firm also lifted wafer fabrication equipment estimates, which supports the view that demand for chip-making tools remains healthy. Article: Barclays adjusts Lam Research price target to 335 from 275
• Positive Sentiment: Lam Research was also included among “top unstoppable growth stocks,” reinforcing investor interest in the name as a high-growth semiconductor play. Article: Lam Research Corporation among the top unstoppable growth stocks
• Positive Sentiment: Semiconductor equipment stocks have been trading at record highs amid continued AI-driven demand for chip gear, a sector tailwind that is helping lift Lam Research and peers like Applied Materials and KLA. Article: Applied Materials, Other Chip Gear Stocks At Record Highs
• Neutral Sentiment: Recent commentary on the semiconductor sector suggests the group may be due for a correction after a strong run, which could create near-term volatility for Lam Research even if the longer-term outlook remains constructive. Article: Semiconductor Index Outlook: Upside Target Reached, Correction Underway
• Negative Sentiment: Some investors are also debating whether the semiconductor cycle is nearing a peak, which could temper enthusiasm if chip-equipment demand slows later this year. Article: Lam Research: The Etch Monopoly Printing Record Margins While The Street Debates Peak Cycle

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Morgan Stanley upgraded Lam Research from an “underweight” rating to an “overweight” rating and increased their price target for the company from $293.00 to $331.00 in a research note on Monday, May 18th. UBS Group reiterated a “buy” rating and issued a $375.00 price target (up from $310.00) on shares of Lam Research in a research note on Tuesday. Berenberg Bank increased their price target on Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Seaport Research Partners assumed coverage on Lam Research in a research note on Monday, May 4th. They issued a “buy” rating and a $300.00 price target for the company. Finally, Raymond James Financial set a $425.00 price target on Lam Research in a research note on Wednesday. Twenty-seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and an average price target of $322.01.

Lam Research Stock Performance

The stock has a market capitalization of $402.43 billion, a PE ratio of 60.72, a PEG ratio of 2.69 and a beta of 1.85. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The firm has a 50 day moving average price of $277.79 and a 200-day moving average price of $229.81.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.70 billion. During the same period last year, the business posted $1.04 earnings per share. 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. Research analysts expect that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is 19.62%.

Insider Activity

In related news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction dated 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 sale, the senior vice president directly owned 58,470 shares of the company’s stock, valued at $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the firm’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 sale, the insider directly owned 53,205 shares in the company, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 31,839 shares of company stock worth $8,561,667. 0.31% of the stock is owned by corporate insiders.

Institutional Trading of Lam Research

Institutional investors have recently bought and sold shares of the business. GSG Advisors LLC lifted its position in shares of Lam Research by 3.1% in the first quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock valued at $296,000 after acquiring an additional 42 shares in the last quarter. Valued Wealth Advisors LLC lifted its position in shares of Lam Research by 7.9% in the first quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company’s stock valued at $126,000 after acquiring an additional 43 shares in the last quarter. Greenup Street Wealth Management LLC lifted its position in Lam Research by 1.8% during the first quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company’s stock worth $520,000 after buying an additional 44 shares in the last quarter. Triumph Capital Management lifted its position in Lam Research by 22.5% during the fourth quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock worth $42,000 after buying an additional 45 shares in the last quarter. Finally, Traphagen Investment Advisors LLC lifted its position in Lam Research by 2.4% during the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock worth $336,000 after buying an additional 46 shares in the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

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.