Lam Research (NASDAQ:LRCX) Trading Down 9.3% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 9.3% during trading on Tuesday . The stock traded as low as $365.26 and last traded at $371.33. Approximately 15,741,646 shares traded hands during trading, an increase of 43% from the average session volume of 11,031,287 shares. The stock had previously closed at $409.54.

More Lam Research News

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

• Positive Sentiment: Bank of America raised its price target on Lam Research to $480 and reiterated a Buy rating, adding to a cluster of bullish analyst calls that suggest more upside if NAND and AI equipment demand stays strong. Benzinga article
• Positive Sentiment: Citi’s new $450 price target highlights expectations for stronger NAND equipment demand and supports the view that Lam Research can continue benefiting from the AI and memory investment cycle. Barchart article
• Neutral Sentiment: Recent reports highlight Lam Research’s strong fundamentals, including revenue growth, earnings beats, and upbeat AI-related commentary, which helps explain why analysts remain constructive even after a big run. Yahoo Finance article
• Negative Sentiment: Lam Research is being hit by a broad semiconductor selloff, with investors taking profits and reducing exposure to high-valuation AI and memory names, pressuring the stock despite company-specific strength. Quiver Quant article

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on LRCX. HSBC increased their price target on Lam Research from $221.00 to $247.00 and gave the company a “hold” rating in a research report on Friday, April 24th. Sanford C. Bernstein upped their price objective on Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. TD Cowen raised their target price on Lam Research from $290.00 to $340.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Wall Street Zen cut Lam Research from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Finally, Wells Fargo & Company reissued an “overweight” rating and issued a $450.00 price target (up from $365.00) on shares of Lam Research in a report on Monday. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Lam Research presently has an average rating of “Moderate Buy” and a consensus target price of $334.43.

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 company has a 50 day simple moving average of $304.76 and a 200-day simple moving average of $243.95. The stock has a market capitalization of $464.37 billion, a P/E ratio of 70.06, a price-to-earnings-growth ratio of 3.21 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm’s revenue for the quarter was up 23.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities analysts forecast that Lam Research Corporation will post 5.7 EPS for the current year.

Lam Research Announces Dividend

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

Insider Activity at Lam Research

In other Lam Research news, insider Ava Harter sold 6,010 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the sale, the insider owned 53,205 shares in the company, valued at $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction on Monday, June 1st. The shares were sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 86,339 shares of company stock worth $27,680,267. 0.31% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LRCX. Fideuram Asset Management Ireland dac bought a new position in shares of Lam Research in the fourth quarter worth approximately $10,035,000. Generali Investments Management Co LLC raised its position in shares of Lam Research by 62.0% during the 4th quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company’s stock valued at $6,209,000 after purchasing an additional 13,878 shares during the period. Thoroughbred Financial Services LLC lifted its stake in shares of Lam Research by 115.2% during the 3rd quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company’s stock valued at $2,972,000 after buying an additional 11,883 shares in the last quarter. Hillsdale Investment Management Inc. purchased a new position in shares of Lam Research during the 3rd quarter valued at $1,229,000. Finally, Whalen Wealth Management Inc. bought a new position in Lam Research in the 4th quarter worth $1,423,000. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.