Lam Research (NASDAQ:LRCX) Shares Down 1.2% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price dropped 1.2% on Wednesday . The stock traded as low as $298.56 and last traded at $307.28. Approximately 9,107,479 shares changed hands during mid-day trading, a decline of 16% from the average session volume of 10,898,552 shares. The stock had previously closed at $310.96.

Analyst Ratings Changes

A number of brokerages recently commented on LRCX. Cantor Fitzgerald set a $500.00 price objective on shares of Lam Research and gave the stock an “overweight” rating in a report on Monday, June 29th. Weiss Ratings lowered shares of Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 4th. Citigroup reiterated a “buy” rating and set a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Mizuho dropped their price target on Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Finally, Needham & Company LLC restated a “buy” rating and issued a $390.00 price target on shares of Lam Research in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $361.81.

Lam Research Price Performance

The business has a fifty day moving average of $305.28 and a 200 day moving average of $296.62. The firm has a market cap of $384.51 billion, a P/E ratio of 53.35, a PEG ratio of 1.20 and a beta of 1.85. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

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

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be issued a $0.33 dividend. This is an increase from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. Lam Research’s dividend payout ratio is presently 18.06%.

Insider Activity

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the company’s stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director owned 87,142 shares in the company, valued at approximately $29,192,570. This represents a 17.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. This represents a 10.53% 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. Insiders have sold 32,839 shares of company stock valued at $10,644,740 over the last ninety days. 0.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of large investors have recently made changes to their positions in the company. World Equity Group Inc. grew its position in Lam Research by 0.5% in the second quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock valued at $2,416,000 after acquiring an additional 29 shares during the period. Tenzing Financial LLC lifted its holdings in shares of Lam Research by 3.5% during the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock valued at $441,000 after acquiring an additional 34 shares during the period. Advus Financial Partners LLC lifted its holdings in shares of Lam Research by 1.0% during the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after acquiring an additional 34 shares during the period. Paragon Private Wealth Management LLC boosted its stake in shares of Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after purchasing an additional 35 shares in the last quarter. Finally, Gibraltar Capital Management Inc. boosted its stake in shares of Lam Research by 3.6% in the 2nd quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock valued at $455,000 after purchasing an additional 36 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

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.