Lam Research (NASDAQ:LRCX) Stock Price Down 2.1% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 2.1% on Thursday . The company traded as low as $324.71 and last traded at $336.41. Approximately 8,171,001 shares changed hands during trading, a decline of 24% from the average daily volume of 10,752,909 shares. The stock had previously closed at $343.71.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Analysts and hedge fund commentary remain constructive on Lam Research, viewing it as a wide-moat leader in semiconductor equipment with meaningful upside potential as chipmakers keep investing in advanced manufacturing. What Do Analysts Say About Lam Research (LRCX)’s Earnings Outlook?
• Positive Sentiment: Investor commentary also points to Lam Research’s growing importance in essential chip manufacturing, reinforcing the view that demand for its tools should stay strong if semiconductor capex continues to rise. Lam Research Corp (LRCX): Increasing Dependence on Essential Chip Manufacturing
• Neutral Sentiment: One bullish article argues Lam Research is still a buy because of its wide moat and leadership position, but it also warns that the stock is trading at a rich valuation, which may limit near-term upside. Lam Research: A Wide-Moat Equipment Leader That I Rate A Buy – Despite A Rich Valuation
• Negative Sentiment: Recent market commentary noted that LRCX slipped even as the broader market rose, suggesting some investors are taking profits after the stock’s strong move higher. Lam Research (LRCX) Stock Slides as Market Rises: Facts to Know Before You Trade

Wall Street Analyst Weigh In

LRCX has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lifted their target price on shares of Lam Research from $300.00 to $315.00 and gave the stock an “overweight” rating in a research report on Thursday, April 23rd. New Street Research raised their price target on Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research note on Monday, April 27th. Wall Street Zen lowered Lam Research from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. Zacks Research cut Lam Research from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 6th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $320.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Twenty-seven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $303.30.

Lam Research Stock Down 9.8%

The company’s 50 day moving average price is $273.22 and its two-hundred day moving average price is $226.72. 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 firm has a market cap of $379.27 billion, a PE ratio of 57.22, a PEG ratio of 2.79 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.36 by $0.11. The firm had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.Lam Research’s revenue was up 23.8% on a year-over-year basis. During the same period in the prior year, the business posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities research analysts expect that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Announces Dividend

The business also recently disclosed 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 annualized dividend and a dividend yield of 0.3%. Lam Research’s dividend payout ratio (DPR) is 19.62%.

Insider Transactions at Lam Research

In other Lam Research news, insider Ava Harter sold 6,010 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the sale, the insider owned 53,205 shares in the company, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the transaction, the senior vice president directly owned 66,129 shares in the company, valued at $16,872,153.06. This represents a 21.55% 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. Over the last ninety days, insiders have sold 31,839 shares of company stock worth $8,561,667. Insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Hedge funds and other institutional investors have recently modified their holdings of the company. Cedar Mountain Advisors LLC increased 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 buying an additional 85 shares in the last quarter. Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research in the first quarter valued at about $26,000. PMV Capital Advisers LLC purchased a new position in shares of Lam Research in the fourth quarter valued at about $25,000. Bayban bought a new position in shares of Lam Research in the fourth quarter worth about $26,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Lam Research in the fourth quarter worth about $27,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

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.