Lam Research (NASDAQ:LRCX) Trading Down 4.3% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price traded down 4.3% during mid-day trading on Thursday . The stock traded as low as $315.16 and last traded at $320.96. 10,304,937 shares traded hands during mid-day trading, a decline of 9% from the average session volume of 11,355,858 shares. The stock had previously closed at $335.43.

Key Lam Research News

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

• Positive Sentiment: Multiple firms remain constructive on Lam Research, including TD Cowen and Mizuho, with Mizuho recently lifting its price target to $400 and saying AI demand should support durable wafer-fab equipment spending for years. Mizuho Raises its Price Target on Lam Research Corporation (LRCX)
• Positive Sentiment: Market commentary continues to point to strong AI-related semiconductor equipment demand, with Lam seen as a beneficiary of spending on advanced memory, logic, and wafer fabrication tools. Lam Research (LRCX) Stock Looks About Right Following Fresh AI Demand News
• Positive Sentiment: Lam Research was also highlighted as a potential outperformer by Morgan Stanley ahead of earnings, which may be encouraging investors to position for another strong report. Buy GE Vernova, Lam Research, United Airlines stocks: Morgan Stanley
• Neutral Sentiment: Lam Research is seeing extra attention from investors and media, including fund positioning changes and articles about the stock’s long-term rally, but these items mostly reinforce the existing bullish AI narrative rather than adding fresh catalyst news. Ithaka Group adds TSM, LRCX; exits NFLX, INTU among Q2 moves
• Negative Sentiment: A director sold 18,282 shares in a pre-arranged Rule 10b5-1 transaction, which can still weigh on sentiment even if it was planned in advance. Insider Selling: Lam Research (NASDAQ:LRCX) Director Sells 18,282 Shares of Stock
• Negative Sentiment: Some recent analysis suggests the stock may already reflect a lot of optimism after a huge multi-year rally, leaving less room for upside if AI spending cools or growth expectations become harder to beat. Lam Research (LRCX) Stock Looks About Right Following Fresh AI Demand News

Analyst Upgrades and Downgrades

A number of research firms have recently commented on LRCX. Rothschild & Co Redburn increased their price target on shares of Lam Research from $305.00 to $420.00 and gave the company a “buy” rating in a report on Wednesday, June 17th. Stifel Nicolaus upped their price objective on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Oppenheimer reiterated an “outperform” rating and set a $400.00 target price (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. The Goldman Sachs Group restated a “buy” rating and issued a $290.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Finally, Berenberg Bank upped their price target on Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Lam Research has an average rating of “Moderate Buy” and an average price target of $358.67.

Lam Research Trading Down 4.3%

The company has a market cap of $401.38 billion, a P/E ratio of 60.56, a P/E/G ratio of 2.05 and a beta of 1.80. The stock’s 50-day moving average is $338.50 and its two-hundred day moving average is $267.63. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analysts’ expectations of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm’s quarterly revenue was up 23.8% on a year-over-year basis. During the same quarter last year, the company posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, equities research analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is 19.62%.

Insider Transactions at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the company’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the completion of the sale, the insider owned 53,205 shares in the company, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Eric Brandt sold 54,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were 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 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 sold 104,621 shares of company stock worth $33,804,737. 0.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lam Research

Several institutional investors have recently made changes to their positions in the business. World Equity Group Inc. boosted its position in shares of Lam Research by 0.5% during the 2nd 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 last quarter. Tenzing Financial LLC increased its position in Lam Research by 3.5% in the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after purchasing an additional 34 shares during the last quarter. GSG Advisors LLC raised its stake in Lam Research by 3.1% during the first quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock valued at $296,000 after purchasing an additional 42 shares in the last quarter. First County Bank CT raised its stake in Lam Research by 1.7% during the second quarter. First County Bank CT now owns 2,483 shares of the semiconductor company’s stock valued at $1,076,000 after purchasing an additional 42 shares in the last quarter. Finally, Williams & Novak LLC lifted its position in Lam Research by 1.1% during the second quarter. Williams & Novak LLC now owns 4,011 shares of the semiconductor company’s stock valued at $1,738,000 after purchasing an additional 42 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

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.