Lam Research (NASDAQ:LRCX) Stock Price Down 1.6% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) shares fell 1.6% during trading on Monday . The company traded as low as $305.50 and last traded at $306.40. 6,894,335 shares traded hands during trading, a decline of 39% from the average session volume of 11,362,171 shares. The stock had previously closed at $311.35.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Royal Bank Of Canada increased their target price on shares of Lam Research from $290.00 to $310.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Cantor Fitzgerald set a $500.00 price target on shares of Lam Research and gave the stock an “overweight” rating in a research note on Monday, June 29th. Rothschild & Co Redburn increased their price objective on Lam Research from $305.00 to $420.00 and gave the stock a “buy” rating in a report on Wednesday, June 17th. The Goldman Sachs Group reissued a “buy” rating and set a $290.00 price objective on shares of Lam Research in a research report on Thursday, April 23rd. Finally, Stifel Nicolaus boosted their target price on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $358.47.

Lam Research Stock Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The firm’s 50 day moving average is $339.89 and its 200-day moving average is $280.04. The firm has a market cap of $383.17 billion, a price-to-earnings ratio of 53.19, a price-to-earnings-growth ratio of 1.25 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. During the same period in the prior year, the company posted $1.33 earnings per share. Lam Research’s revenue for the quarter was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Sell-side analysts anticipate that Lam Research Corporation will post 9.24 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were issued a dividend of $0.26 per share. The ex-dividend date of this dividend was 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 18.06%.

Insider Activity at Lam Research

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director owned 87,142 shares in the company, valued at $29,192,570. This trade represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the transaction, the senior vice president directly owned 58,470 shares in the company, valued at approximately $18,102,312. This represents a 11.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 80,441 shares of company stock valued at $27,614,296. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC boosted its stake in Lam Research by 1,032.4% during the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after purchasing an additional 12,936 shares during the period. Caxton Associates LLP bought a new position in Lam Research in the 1st quarter worth approximately $239,000. Gabelli Funds LLC acquired a new position in shares of Lam Research during the second quarter worth approximately $253,000. NewEdge Advisors LLC lifted its holdings in shares of Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock worth $9,785,000 after buying an additional 2,661 shares during the last quarter. Finally, Osterweis Capital Management Inc. boosted its position in shares of Lam Research by 5,206.7% in the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock valued at $77,000 after acquiring an additional 781 shares during the period. 84.61% of the stock is currently 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.