Lam Research (NASDAQ:LRCX) Shares Down 1.6% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s stock price fell 1.6% on Monday . The stock traded as low as $305.50 and last traded at $306.40. Approximately 6,894,335 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 11,362,171 shares. The stock had previously closed at $311.35.

Lam Research News Roundup

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

• Positive Sentiment: AI and advanced-packaging growth: Lam Research is expanding into panel-level packaging, an emerging market supported by larger and more complex AI chips. The initiative could provide an additional long-term growth opportunity beyond its core wafer-fabrication equipment business. Lam Research Enters Panel-Level Packaging: Is This a Growth Catalyst?
• Positive Sentiment: Analyst confidence is strengthening: Zacks upgraded LRCX to a No. 1 “Strong Buy,” citing better earnings prospects, while Erste Group Bank raised its fiscal 2027 EPS forecast to $9.27 from $8.05. The estimate increase reinforces expectations for continued operating momentum. Lam Research Upgraded to Strong Buy
• Positive Sentiment: Semiconductor workforce partnership: Lam and NY Creates will use Lam’s Semiverse Solutions virtual-fabrication platform to help train approximately 3,500 university students over five years. The program supports industry workforce development and strengthens Lam’s visibility with future engineers, though its direct financial impact is likely limited near term. Lam Research and NY Creates Team Up
• Neutral Sentiment: Investor attention is elevated: Jim Cramer is scheduled to host a semiconductor-focused CNBC Investing Club call, which could increase visibility for LRCX but does not represent a fundamental change in the company’s outlook. Semiconductor Stocks Jim Cramer Could Be Talking About
• Negative Sentiment: Potential memory-industry competition: SpaceX’s proposed Terrafab could eventually challenge the memory-chip market dominated by Micron, SK Hynix and Samsung. This is an indirect risk for Lam because memory manufacturers are important equipment customers, although the project remains prospective and is not an immediate threat to LRCX’s results. Elon Musk’s Newest Factory and Memory Stocks

Wall Street Analysts Forecast Growth

LRCX has been the topic of several analyst reports. UBS Group reaffirmed a “buy” rating and set a $375.00 price target (up from $310.00) on shares of Lam Research in a research report on Tuesday, June 9th. B. Riley Financial decreased their price objective on shares of Lam Research from $385.00 to $350.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Sanford C. Bernstein boosted their price objective on shares of Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Seaport Research Partners assumed coverage on shares of Lam Research in a research note on Monday, May 4th. They set a “buy” rating and a $300.00 price objective on the stock. Finally, Royal Bank Of Canada upped their target price on shares of Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $358.47.

Lam Research Stock Up 5.4%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The firm has a fifty day simple moving average of $339.22 and a 200-day simple moving average of $281.21. The firm has a market cap of $410.72 billion, a price-to-earnings ratio of 56.98, a P/E/G ratio of 1.22 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s revenue was up 30.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts expect that Lam Research Corporation will post 9.32 EPS for the current year.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were issued a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research’s dividend payout ratio is currently 18.06%.

Insiders Place Their Bets

In other news, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director owned 199,205 shares of the company’s stock, 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 can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $309.60, for a total value of $2,371,226.40. Following the transaction, the senior vice president owned 58,470 shares in the company, valued at approximately $18,102,312. This trade represents a 11.58% 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. Insiders sold 80,441 shares of company stock worth $27,614,296 over the last three months. Insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Paladin Partners LLC acquired a new position in shares of Lam Research in the second quarter valued at about $26,000. Bravera Wealth acquired a new stake in Lam Research in the 2nd quarter worth about $46,000. Cedar Mountain Advisors LLC raised its stake in Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after purchasing an additional 85 shares in the last quarter. Comprehensive Financial Planning Inc. PA bought a new stake in Lam Research in the 2nd quarter valued at about $52,000. Finally, Vermillion Wealth Management Inc. bought a new stake in Lam Research in the 1st quarter valued at about $26,000. 84.61% of the stock is owned by institutional investors and hedge funds.

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.