Lam Research (NASDAQ:LRCX) Shares Down 5.7% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) shares fell 5.7% during trading on Friday . The stock traded as low as $374.31 and last traded at $379.09. Approximately 19,490,885 shares traded hands during trading, an increase of 74% from the average session volume of 11,200,616 shares. The stock had previously closed at $401.82.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Wells Fargo raised its price target on Lam Research to $450 from $365 and kept an Overweight rating, signaling continued confidence in the company’s growth outlook and semiconductor capital equipment demand. Wells Fargo Raises its Price Target on Lam Research (LRCX)
• Positive Sentiment: Lam Research was highlighted by Zacks as a stock to watch, citing earnings growth and price strength, which may reinforce investor optimism around the stock’s momentum. Earnings Growth & Price Strength Make Lam Research (LRCX) a Stock to Watch
• Positive Sentiment: Micron’s strong earnings and upbeat memory-chip outlook lifted chip stocks broadly, while Lam Research gained attention for opening a Boise office to get closer to Micron’s memory expansion plans, underscoring its exposure to a key growth customer. Lam Research (LRCX) Opens Boise Office To Get Closer To Micron’s Memory Expansion
• Positive Sentiment: Lam Research was among the after-hours gainers alongside other semiconductor names, reflecting broader enthusiasm for AI chip stocks and improving sentiment across the sector. Top After-Hours Gainers Today Beyond Micron: QCOM, AMAT, LRCX Surge
• Neutral Sentiment: Brokerage data showed Lam Research with an average “Moderate Buy” recommendation, which supports a constructive but not especially new fundamental outlook. Lam Research Corporation (NASDAQ:LRCX) Receives Average Recommendation of “Moderate Buy” from Brokerages
• Neutral Sentiment: A report on short interest noted no meaningful short-interest build, so it does not appear to be a major driver for the stock.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Wells Fargo & Company restated an “overweight” rating and issued a $450.00 price objective (up from $365.00) on shares of Lam Research in a research report on Monday. Rothschild & Co Redburn lifted their target price on Lam Research from $305.00 to $420.00 and gave the company a “buy” rating in a research note on Wednesday, June 17th. New Street Research boosted their target price on Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research report on Monday, April 27th. Deutsche Bank Aktiengesellschaft upped their price target on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Finally, Evercore lifted their price objective on Lam Research from $275.00 to $300.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Twenty-eight investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $334.43.

Lam Research Stock Performance

The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The company has a market cap of $474.08 billion, a price-to-earnings ratio of 71.53, a P/E/G ratio of 3.09 and a beta of 1.85. The stock has a 50 day moving average price of $311.62 and a two-hundred day moving average price of $248.67.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.11. The business had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm’s quarterly revenue was up 23.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Analysts predict that Lam Research Corporation will post 5.7 EPS for the current year.

Lam Research Announces Dividend

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

Insider Activity at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the sale, the insider directly owned 53,205 shares in the company, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the transaction, the senior vice president directly owned 58,470 shares in the company, valued at $18,102,312. The trade was a 11.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 86,339 shares of company stock worth $27,680,267 in the last ninety days. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several hedge funds have recently added to or reduced their stakes in LRCX. Sapient Capital LLC increased its holdings in shares of Lam Research by 154.9% in the first quarter. Sapient Capital LLC now owns 6,586 shares of the semiconductor company’s stock worth $1,413,000 after acquiring an additional 4,002 shares in the last quarter. Militia Capital Management LLC acquired a new position in shares of Lam Research in the 1st quarter valued at approximately $218,000. Rathbones Group PLC increased its stake in Lam Research by 1,013.2% during the 1st quarter. Rathbones Group PLC now owns 73,112 shares of the semiconductor company’s stock worth $15,621,000 after purchasing an additional 66,544 shares in the last quarter. Wealthquest Corp increased its stake in Lam Research by 5.3% during the 1st quarter. Wealthquest Corp now owns 4,041 shares of the semiconductor company’s stock worth $863,000 after purchasing an additional 205 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in Lam Research by 7.6% during the 1st quarter. Parallel Advisors LLC now owns 20,591 shares of the semiconductor company’s stock worth $4,400,000 after buying an additional 1,461 shares during the period. Institutional investors and hedge funds 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.