Lam Research Corporation (NASDAQ:LRCX – Get Free Report) dropped 5% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $368.77 and last traded at $369.34. Approximately 11,831,504 shares were traded during trading, an increase of 9% from the average daily volume of 10,869,493 shares. The stock had previously closed at $388.92.
Specifically, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction that occurred on 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 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Wall Street Analysts Forecast Growth
Several brokerages have issued reports on LRCX. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $575.00 target price (up from $320.00) on shares of Lam Research in a research note on Monday, June 1st. Weiss Ratings lowered Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, May 14th. Wall Street Zen downgraded Lam Research from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. New Street Research upped their target price on Lam Research from $235.00 to $280.00 and gave the company a “neutral” rating in a report on Monday, April 27th. Finally, Raymond James Financial set a $425.00 price objective on Lam Research in a report on Wednesday, June 10th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $324.26.
Key Headlines Impacting Lam Research
Here are the key news stories impacting Lam Research this week:
- Positive Sentiment: Several recent articles highlight Lam Research’s growth profile, with commentary pointing to strong earnings momentum, a favorable outlook, and meaningful upside potential over the next few years. Is Lam Research (LRCX) a Solid Growth Stock? 3 Reasons to Think “Yes”
- Positive Sentiment: Lam Research’s advanced packaging business is gaining traction as AI chip demand boosts spending on etch and deposition tools, which could become an important growth catalyst. Lam Research Expects Packaging Growth of 50: Is It a Hidden Catalyst?
- Positive Sentiment: The broader semiconductor rally is helping LRCX, with chip ETFs and several semiconductor names breaking to new highs as investors rotate back into the sector. Chips Up 8.8% in One Week: 5 Semiconductor Names Breaking Into New Highs
- Positive Sentiment: Market commentary says Lam Research has strong upside potential, including one view that the stock could rise substantially over the next three years if revenue growth persists. How Much Upside Can LRCX Stock’s Growth Deliver?
- Neutral Sentiment: Unusual put options activity suggests some traders are positioning defensively, but one analysis argues the activity may also reflect confidence in valuation rather than outright bearishness. Unusual Put Options Activity in Lam Research Stock Highlights Its Value
- Neutral Sentiment: Director Eric Brandt sold 54,500 shares under a pre-arranged 10b5-1 plan; while worth watching, the transaction does not necessarily signal a change in fundamentals. SEC filing for director share sale
Lam Research Trading Down 5.0%
The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The stock has a market capitalization of $461.89 billion, a PE ratio of 69.69, a PEG ratio of 3.02 and a beta of 1.85. The stock has a 50-day moving average price of $289.51 and a two-hundred day moving average price of $235.83.
Lam Research (NASDAQ:LRCX – Get Free Report) last issued its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same quarter last year, the company earned $1.04 EPS. The firm’s quarterly revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, equities analysts forecast that Lam Research Corporation will post 5.7 earnings per share for the current year.
Lam Research Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. Lam Research’s payout ratio is presently 19.62%.
Hedge Funds Weigh In On Lam Research
Large investors have recently bought and sold shares of the business. Norges Bank bought a new position in shares of Lam Research in the 4th quarter worth $3,645,427,000. Price T Rowe Associates Inc. MD increased its holdings in shares of Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock valued at $2,344,347,000 after purchasing an additional 10,666,540 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Lam Research by 781.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company’s stock valued at $1,518,542,000 after purchasing an additional 10,053,978 shares during the period. Franklin Resources Inc. increased its holdings in shares of Lam Research by 57.0% in the fourth quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company’s stock valued at $1,730,724,000 after purchasing an additional 3,671,073 shares during the period. Finally, Corient Private Wealth LLC grew its holdings in Lam Research by 235.5% during the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company’s stock worth $890,040,000 after acquiring an additional 3,649,553 shares during the period. Hedge funds and other institutional investors own 84.61% of the company’s stock.
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.
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