Lam Research (NASDAQ:LRCX) Shares Down 6.9% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) dropped 6.9% during mid-day trading on Tuesday . The stock traded as low as $313.10 and last traded at $326.13. 15,418,912 shares were traded during mid-day trading, an increase of 35% from the average session volume of 11,417,704 shares. The stock had previously closed at $350.20.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Mizuho boosted Lam Research’s price target to $400 and maintained an Outperform rating, reinforcing the bullish case for the stock. Why Is Lam Research Stock Soaring Thursday?
• Positive Sentiment: Morgan Stanley reiterated a Buy rating with a $404 target, suggesting analysts still see meaningful upside for Lam Research. Lam Research: Buy Rating Reiterated…
• Positive Sentiment: Meta’s planned in-house chip efforts were viewed as supportive for semiconductor equipment suppliers like Lam Research, helping sentiment across the group. Applied Materials and Lam Research Take Off on Meta’s Chip Plans
• Neutral Sentiment: Lam Research announced it will host its June quarter financial conference call and webcast on July 29, which keeps attention on upcoming results but is not itself a catalyst. Lam Research Corporation Announces June Quarter Financial Conference Call
• Negative Sentiment: Recent trading has also been volatile, and one prior selloff was tied to broader semiconductor-equipment weakness and valuation concerns rather than a company-specific problem. Lam Research (LRCX) Dips More Than Broader Market: What You Should Know

Analyst Upgrades and Downgrades

Several research analysts have commented on LRCX shares. Weiss Ratings downgraded Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, May 14th. Raymond James Financial set a $425.00 price target on shares of Lam Research in a research report on Wednesday, June 10th. 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 note on Thursday, April 23rd. Wall Street Zen lowered Lam Research from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. Finally, Morgan Stanley upped their target price on Lam Research from $331.00 to $404.00 and gave the company an “overweight” rating in a research report on Monday. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research presently has an average rating of “Moderate Buy” and a consensus price target of $350.33.

Lam Research Stock Up 5.6%

The company has a market cap of $439.97 billion, a P/E ratio of 66.38, a price-to-earnings-growth ratio of 1.94 and a beta of 1.80. The stock has a fifty day moving average price of $330.82 and a two-hundred day moving average price of $261.73. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm’s revenue for the quarter was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, research analysts expect that Lam Research Corporation will post 5.68 EPS for the current year.

Lam Research Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is currently 19.62%.

Insider Transactions at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the stock in a transaction dated Monday, April 27th. The stock was 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 of the company’s stock, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $255.14, for a total value of $4,635,893.80. Following the transaction, the senior vice president directly owned 66,129 shares of the company’s stock, valued at $16,872,153.06. The trade was a 21.55% 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 86,339 shares of company stock worth $27,680,267 over the last quarter. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Institutional investors and hedge funds have recently modified their holdings of the business. GSG Advisors LLC raised its position in Lam Research by 3.1% during the first quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock valued at $296,000 after purchasing an additional 42 shares in the last quarter. First County Bank CT raised its position in Lam Research by 1.7% in the 2nd quarter. First County Bank CT now owns 2,483 shares of the semiconductor company’s stock worth $1,076,000 after purchasing an additional 42 shares during the period. Williams & Novak LLC boosted its position in Lam Research by 1.1% during the second quarter. Williams & Novak LLC now owns 4,011 shares of the semiconductor company’s stock valued at $1,738,000 after buying an additional 42 shares during the period. Valued Wealth Advisors LLC increased its holdings in shares of Lam Research by 7.9% in the first quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company’s stock worth $126,000 after buying an additional 43 shares during the period. Finally, Greenup Street Wealth Management LLC increased its stake in Lam Research by 1.8% in the 1st quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company’s stock worth $520,000 after purchasing an additional 44 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.