Lam Research (NASDAQ:LRCX) Stock Price Down 8.3% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s stock price traded down 8.3% during mid-day trading on Monday . The company traded as low as $273.24 and last traded at $273.49. Approximately 13,085,791 shares traded hands during trading, an increase of 20% from the average daily volume of 10,883,552 shares. The stock had previously closed at $298.22.

Wall Street Analyst Weigh In

LRCX has been the subject of several research analyst reports. Stifel Nicolaus lifted their price objective on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Mizuho lowered their target price on shares of Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $320.00 price target on shares of Lam Research in a report on Thursday, July 30th. Citigroup reissued a “buy” rating and set a $450.00 price objective (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Finally, Barclays restated an “overweight” rating and set a $335.00 price objective (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $361.81.

Lam Research Stock Performance

The business’s 50-day moving average price is $310.74 and its 200-day moving average price is $294.54. 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 stock has a market cap of $338.95 billion, a P/E ratio of 47.03, a P/E/G ratio of 1.08 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.Lam Research’s quarterly revenue was up 30.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts expect that Lam Research Corporation will post 9.33 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 23rd. Lam Research’s dividend payout ratio is currently 18.06%.

Insider Buying and Selling

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following the transaction, the insider directly owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 32,839 shares of company stock valued at $10,644,740. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several hedge funds have recently bought and sold shares of LRCX. Bayban bought a new position in Lam Research during the fourth quarter valued at approximately $26,000. Vermillion Wealth Management Inc. bought a new stake in Lam Research in the first quarter worth $26,000. Cedar Mountain Advisors LLC raised its stake in Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 85 shares in the last quarter. Paladin Partners LLC bought a new position in Lam Research during the second quarter valued at $26,000. Finally, Core Wealth Advisors LLC purchased a new position in shares of Lam Research in the 4th quarter worth $29,000. Hedge funds and other institutional investors own 84.61% of the company’s stock.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.