Lam Research (NASDAQ:LRCX) Shares Down 4.7% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) shares dropped 4.7% on Wednesday. The company traded as low as $284.75 and last traded at $286.92. 10,314,642 shares were traded during trading, a decline of 3% from the average daily volume of 10,658,878 shares. The stock had previously closed at $301.11.

Wall Street Analysts Forecast Growth

LRCX has been the topic of a number of research analyst reports. Mizuho dropped their target price on shares of Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Cantor Fitzgerald set a $500.00 price target on shares of Lam Research and gave the company an “overweight” rating in a research note on Monday, June 29th. Bank of America boosted their price target on Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Zacks Research raised Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 17th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $320.00 price objective on shares of Lam Research in a research note on Thursday, July 30th. One equities research 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 company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $364.59.

Lam Research Trading Down 4.6%

The company has a market capitalization of $331.30 billion, a PE ratio of 45.86, a price-to-earnings-growth ratio of 1.14 and a beta of 1.85. The company’s fifty day moving average is $309.98 and its 200-day moving average is $308.35. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the prior year, the business earned $1.33 earnings per share. Lam Research’s revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, analysts anticipate that Lam Research Corporation will post 9.34 EPS for the current fiscal year.

Lam Research Increases Dividend

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

Insider Buying and Selling at Lam Research

In other news, Director Bethany Mayer sold 9,557 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, the director owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction that occurred on 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 transaction, the insider owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% 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. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Institutional investors and hedge funds have recently bought and sold shares of the business. Opal Wealth Advisors LLC lifted its holdings in shares of Lam Research by 165.3% in the 3rd quarter. Opal Wealth Advisors LLC now owns 1,552 shares of the semiconductor company’s stock valued at $510,000 after buying an additional 967 shares during the period. Banque Pictet & Cie SA lifted its holdings in Lam Research by 93.1% in the third quarter. Banque Pictet & Cie SA now owns 130,039 shares of the semiconductor company’s stock valued at $42,719,000 after acquiring an additional 62,695 shares during the period. Rise Advisors LLC boosted its position in Lam Research by 12.1% in the 3rd quarter. Rise Advisors LLC now owns 873 shares of the semiconductor company’s stock worth $287,000 after purchasing an additional 94 shares in the last quarter. Eagle Bay Advisors LLC boosted its position in Lam Research by 12.6% in the 3rd quarter. Eagle Bay Advisors LLC now owns 752 shares of the semiconductor company’s stock worth $247,000 after purchasing an additional 84 shares in the last quarter. Finally, Selective Wealth Management Inc. boosted its position in Lam Research by 19.2% in the 3rd quarter. Selective Wealth Management Inc. now owns 1,636 shares of the semiconductor company’s stock worth $537,000 after purchasing an additional 263 shares in the last quarter. 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.