Lam Research (NASDAQ:LRCX) Shares Gap Down – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $350.20, but opened at $322.41. Lam Research shares last traded at $321.6720, with a volume of 2,644,085 shares.

More Lam Research News

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

• Positive Sentiment: Goldman Sachs reportedly raised price targets on Lam Research alongside other chip equipment names, helping fuel a broader rally in semiconductor equipment stocks tied to strong AI and memory spending. 2 Chip Stocks Driving Today’s Rally With Lofty Bull Notes
• Positive Sentiment: Morgan Stanley raised its price target on Lam Research to $404 from $331 and kept an overweight rating, signaling continued confidence in the company’s upside potential. Benzinga coverage of Morgan Stanley price target raise
• Positive Sentiment: Cantor Fitzgerald lifted its target on LRCX to $500 from $425 and reiterated an overweight view, citing the AI infrastructure buildout as a key growth driver. Is Lam Research (LRCX) One of the Best Stocks on the Rise to Invest In?
• Positive Sentiment: Susquehanna also boosted its Lam Research price target to $475 from $385 after channel checks pointed to stronger-than-expected spending trends in semiconductor equipment. Susquehanna Lifts PT on Lam Research (LRCX) – Here’s Why
• Neutral Sentiment: Several articles highlighted Lam Research as a long-term winner and a stock to watch ahead of earnings, but these pieces were largely commentary rather than new fundamental developments. Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Negative Sentiment: Some investors remain worried that AI chip demand may be normalizing, and one article said Lam Research’s stock was falling as those fears collided with company guidance and broader weakness in semiconductor equipment shares. Lam Research (LRCX) Stock Falls As AI Demand Fears Clash With Company Guidance
• Negative Sentiment: A separate note from Vltava Fund called Lam Research overvalued, adding a valuation headwind after the stock’s strong performance. Vltava Fund: Lam Research (LRCX) Is Overvalued

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Seaport Research Partners assumed coverage on Lam Research in a report on Monday, May 4th. They set a “buy” rating and a $300.00 price target for the company. Berenberg Bank raised their price objective on Lam Research from $265.00 to $335.00 and gave the stock a “buy” rating in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft lifted their price objective on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. B. Riley Financial boosted their price objective on Lam Research from $350.00 to $375.00 and gave the company a “buy” rating in a research note on Tuesday, May 12th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Twenty-eight investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $347.75.

Lam Research Stock Performance

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 business has a 50 day moving average price of $326.35 and a two-hundred day moving average price of $258.02. The stock has a market cap of $405.15 billion, a P/E ratio of 61.18, a price-to-earnings-growth ratio of 2.10 and a beta of 1.80.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating 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 company had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same quarter last year, the company earned $1.04 EPS. The firm’s quarterly revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, sell-side analysts forecast that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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 given a dividend of $0.26 per share. The ex-dividend date 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 currently 19.62%.

Insider Buying and Selling at Lam Research

In other news, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the sale, the senior vice president directly owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. The trade was a 11.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 business’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 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. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 86,339 shares of company stock worth $27,680,267. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Large investors have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in shares of Lam Research by 1,032.4% during the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after buying an additional 12,936 shares during the period. Caxton Associates LLP purchased a new position in Lam Research in the 1st quarter worth about $239,000. Gabelli Funds LLC bought a new stake in Lam Research during the 2nd quarter valued at about $253,000. NewEdge Advisors LLC lifted its holdings in Lam Research by 2.7% during the 2nd quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock valued at $9,785,000 after buying an additional 2,661 shares in the last quarter. Finally, Osterweis Capital Management Inc. boosted its position in Lam Research by 5,206.7% in the 2nd quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock valued at $77,000 after buying an additional 781 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

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.