Morgan Stanley Cuts Lam Research (NASDAQ:LRCX) Price Target to $367.00

Lam Research (NASDAQ:LRCX) had its price objective reduced by Morgan Stanley from $404.00 to $367.00 in a research note released on Thursday,Benzinga reports. They currently have an overweight rating on the semiconductor company’s stock.

LRCX has been the subject of several other research reports. Seaport Research Partners began coverage on Lam Research in a research note on Monday, May 4th. They issued a “buy” rating and a $300.00 price target for the company. Evercore reiterated an “outperform” rating and set a $355.00 price target on shares of Lam Research in a research note on Monday, July 20th. Raymond James Financial set a $425.00 price objective on Lam Research in a report on Wednesday, June 10th. JPMorgan Chase & Co. lifted their price target on shares of Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. Finally, Zacks Research raised shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. 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. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $358.47.

Lam Research Price Performance

NASDAQ LRCX opened at $293.15 on Thursday. The firm has a market capitalization of $366.60 billion, a price-to-earnings ratio of 50.89, a price-to-earnings-growth ratio of 1.74 and a beta of 1.80. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.77. The company has a 50 day simple moving average of $340.82 and a 200-day simple moving average of $276.47. Lam Research has a 52-week low of $90.93 and a 52-week high of $438.50.

Lam Research (NASDAQ:LRCX) last released its earnings results 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. The company had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s revenue was up 30.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities research analysts predict that Lam Research will post 8.9 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were given 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 yield of 0.4%. Lam Research’s dividend payout ratio (DPR) is 18.06%.

Insider Activity

In related news, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. This represents a 21.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of Lam Research stock in a transaction 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 sale, the director owned 87,142 shares in the company, valued at $29,192,570. This represents a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 80,441 shares of company stock worth $27,614,296. Company insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently modified their holdings of LRCX. Bravera Wealth acquired a new position in Lam Research in the second quarter valued at about $46,000. Cedar Mountain Advisors LLC raised its stake in shares of Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 shares during the last quarter. Vermillion Wealth Management Inc. acquired a new position in shares of Lam Research in the 1st quarter worth approximately $26,000. Hughes Financial Services LLC boosted its holdings in shares of Lam Research by 54.9% in the 2nd quarter. Hughes Financial Services LLC now owns 141 shares of the semiconductor company’s stock worth $61,000 after acquiring an additional 50 shares in the last quarter. Finally, Bayban bought a new stake in Lam Research during the 4th quarter worth approximately $26,000. Institutional investors own 84.61% of the company’s stock.

Trending Headlines about Lam Research

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

• Positive Sentiment: Strong fiscal fourth-quarter results and outlook: Lam reported record revenue of $6.72 billion, up approximately 30% year over year, and adjusted EPS of $1.82 versus the $1.69 consensus estimate. Management’s outlook for the next quarter—approximately $8.1 billion in revenue and $2.00–$2.30 in EPS—significantly exceeded expectations. NAND revenue more than doubled sequentially, while customer-support revenue reached another record. LRCX Q4 Earnings Beat on NAND and Customer Support Strength
• Positive Sentiment: AI and memory demand remain key catalysts: Analysts and investors see Lam benefiting from ongoing AI infrastructure spending, advanced chip production, NAND investment, packaging, and wafer-fabrication demand. Some commentary describes an “extraordinary runway” heading into 2027. This Chip Stock Could Be the Biggest Winner of the AI Memory Boom
• Positive Sentiment: China memory concerns may be overstated: Mizuho argued that fears of Chinese producer CXMT flooding the DRAM market and pressuring prices are overblown, easing a potential risk to semiconductor-equipment demand. Tech specialist explains why China memory fears are overblown
• Neutral Sentiment: Analyst views remain broadly constructive but targets are mixed: Needham reaffirmed a Buy rating and $390 target, while Morgan Stanley lowered its target from $404 to $367 and B. Riley reduced its target from $385 to $350, retaining Buy or Overweight ratings. The target cuts suggest expectations are being moderated after the rally, even though analysts still see potential upside. Needham Raises Lam Research EPS Estimates
• Negative Sentiment: Valuation and insider selling are overhangs: After rising roughly 3.9 times over five years and trading at a high earnings multiple, LRCX may be vulnerable to profit-taking. Reported insider activity shows sales rather than purchases over the past six months, reinforcing caution around current valuation. Has Lam Research Fallen Far Enough to Look Like a Bargain?

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.