Lam Research (NASDAQ:LRCX) Stock Falls 2.7% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 2.7% on Tuesday. The stock traded as low as $290.90 and last traded at $301.11. 8,143,273 shares were traded during trading, a decline of 24% from the average session volume of 10,660,307 shares. The stock had previously closed at $309.56.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Lam Research is integrating NVIDIA’s NanoVDB open-source library into its SEMulator3D platform. GPU-accelerated wafer-etch simulation could help chipmakers design and manufacture AI-focused semiconductors more efficiently, strengthening the company’s exposure to AI-factory investment. Lam Research Ties AI Fab Push To Faster SEMulator3D Modeling
• Positive Sentiment: Analysts’ consensus price target implies roughly 25.6% upside, while upward earnings-estimate revisions offer a potentially supportive near-term catalyst. However, price targets alone have limited predictive value. Wall Street Analysts See a 25.6% Upside in Lam Research
• Positive Sentiment: Twenty-four exchange-traded funds added LRCX holdings on October 13, indicating continued institutional demand despite recent weakness. 24 ETFs Add Lam Research Holdings
• Neutral Sentiment: Erste Group Bank issued a fiscal 2027 earnings forecast, adding to the estimates investors will compare with Lam Research’s October 21 results. Erste Group Bank Forecasts Lam Research Earnings
• Negative Sentiment: Shares have declined for seven consecutive sessions and have recently underperformed the broader market. The pullback reflects caution ahead of earnings and leaves the stock below its 50-day and 200-day moving averages. Lam Research Dips More Than Broader Market

Wall Street Analyst Weigh In

LRCX has been the topic of a number of research reports. Wells Fargo & Company reiterated an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Jefferies Financial Group set a $335.00 price objective on shares of Lam Research and gave the stock a “buy” rating in a research report on Thursday, July 30th. HSBC restated a “hold” rating and set a $333.00 price objective on shares of Lam Research in a report on Monday, July 27th. Bank of America upped their target price on Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Finally, Needham & Company LLC reiterated a “buy” rating and set a $390.00 target price on shares of Lam Research in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $364.59.

Lam Research Price Performance

The firm has a market capitalization of $347.22 billion, a price-to-earnings ratio of 48.17, a P/E/G 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. 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 results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating 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 firm’s quarterly revenue was up 30.0% on a year-over-year basis. 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. On average, equities research analysts anticipate that Lam Research Corporation will post 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend

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

Insider Transactions at Lam Research

In related news, Director Bethany Mayer sold 9,557 shares of the business’s stock in a transaction 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 transaction, the director owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, 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. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

A number of hedge funds and other institutional investors have recently bought and sold shares of LRCX. State Street Corp increased its holdings in Lam Research by 2.6% in the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock worth $26,320,468,000 after acquiring an additional 1,545,830 shares in the last quarter. Bank of America Corp DE grew its holdings in 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 valued at $4,872,426,000 after buying an additional 584,489 shares in the last quarter. Van ECK Associates Corp grew its holdings in Lam Research by 411.8% during the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after buying an additional 8,922,854 shares in the last quarter. Invesco Ltd. grew its holdings in Lam Research by 7.7% during the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock valued at $3,906,559,000 after buying an additional 1,638,406 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Lam Research during the second quarter valued at approximately $3,777,585,000. Institutional investors own 84.61% of the company’s stock.

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.