Lam Research (NASDAQ:LRCX) Shares Down 3.3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) fell 3.3% during mid-day trading on Thursday. The stock traded as low as $266.12 and last traded at $277.46. 13,294,979 shares traded hands during trading, an increase of 25% from the average daily volume of 10,672,452 shares. The stock had previously closed at $286.92.

Lam Research News Summary

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

• Positive Sentiment: Analysts remain optimistic about Lam Research’s valuation. Benzinga’s 22 analysts see an average price target of $346, implying roughly 26% upside, while broader Wall Street consensus points to approximately 25.6% potential upside. Lam Research Stock Hits Longest Losing Streak Ever: Are There Buyers Around?
• Positive Sentiment: Lam Research is integrating NVIDIA’s NanoVDB library into its SEMulator3D platform to accelerate GPU-based wafer-etch modeling. The collaboration could support AI-driven chip design, advanced semiconductor manufacturing and future demand for process-control tools. Lam Research Ties AI Fab Push to Faster SEMulator3D Modeling
• Positive Sentiment: Twenty-four exchange-traded funds added to their Lam Research holdings on October 13, indicating continued institutional or passive-investment demand despite the recent weakness. 24 ETFs Add Lam Research Holdings
• Neutral Sentiment: Lam Research is scheduled to report quarterly results on October 21. The upcoming report is likely to be the next major catalyst, with investors watching demand trends, guidance and the outlook for AI-related semiconductor equipment spending. Lam Research Stock Ahead of October 21 Results
• Negative Sentiment: Lam Research is on track for a ninth consecutive declining session, which would be its longest losing streak since 1984. The persistent selling suggests weak near-term sentiment and raises concern that investors are reducing exposure ahead of earnings. Lam Research Stock Hits Longest Losing Streak Ever
• Negative Sentiment: The stock recently underperformed the broader market, adding to technical pressure. Investors may be taking profits or awaiting confirmation from the October 21 earnings release before buying aggressively. Lam Research Dips More Than Broader Market

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 company an “overweight” rating in a research report on Monday, June 29th. Bank of America boosted their target price on Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Stifel Nicolaus increased their target price on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the stock a “buy” rating in a research note on Thursday, July 30th. Finally, Wells Fargo & Company reissued an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $364.59.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The stock has a market cap of $347.22 billion, a price-to-earnings ratio of 48.17, a PEG ratio of 1.19 and a beta of 1.85. The company’s 50 day moving average is $310.54 and its 200 day moving average is $307.88.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data 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 firm had revenue of $6.72 billion during 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% on a year-over-year basis. During the same period last year, the business posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Research analysts forecast that Lam Research Corporation will post 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. Lam Research’s dividend payout ratio is presently 22.92%.

Insider Buying and Selling at Lam Research

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the director directly owned 20,995 shares in the company, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Ava Harter sold 5,000 shares of the company’s 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 sale, the insider directly owned 42,462 shares in the company, valued at $12,843,056.52. This trade represents a 10.53% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Polaris Financial Partners acquired a new position in Lam Research in the 3rd quarter valued at about $4,814,000. Bank of America Corp DE boosted its stake in shares of Lam Research by 5.5% during the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock worth $4,872,426,000 after purchasing an additional 584,489 shares during the last quarter. Rokos Capital Management LLP grew its holdings in shares of Lam Research by 42.0% during the first quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock worth $55,532,000 after buying an additional 76,840 shares in the last quarter. Aware Super Pty Ltd as trustee of Aware Super purchased a new stake in shares of Lam Research during the first quarter worth about $59,973,000. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of Lam Research during the first quarter worth about $26,489,000. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company’s portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.