Lam Research (NASDAQ:LRCX) Shares Down 2.1% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) shares dropped 2.1% on Monday . The company traded as low as $305.26 and last traded at $306.76. Approximately 8,056,542 shares traded hands during trading, a decline of 29% from the average daily volume of 11,344,513 shares. The stock had previously closed at $313.30.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on LRCX shares. Barclays reaffirmed an “overweight” rating and set a $335.00 price objective (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. JPMorgan Chase & Co. boosted their target price on Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. Bank of America upped their price target on Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. B. Riley Financial raised their price target on Lam Research from $350.00 to $375.00 and gave the stock a “buy” rating in a research report on Tuesday, May 12th. Finally, TD Cowen reaffirmed a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $360.51.

Lam Research Trading Down 2.1%

The firm has a market cap of $383.62 billion, a price-to-earnings ratio of 57.88, a P/E/G ratio of 1.86 and a beta of 1.80. The company’s 50 day simple moving average is $339.57 and its 200 day simple moving average is $269.60. 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 released its earnings results 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 analysts’ expectations 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 for the quarter was up 23.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, research analysts expect that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Activity

In related 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 value of $1,554,546.60. Following the sale, the insider owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This trade represents a 10.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 completion of the transaction, the senior vice president owned 58,470 shares of the company’s stock, valued at $18,102,312. This 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 have sold a total of 104,621 shares of company stock valued at $33,804,737 over the last three months. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds and other institutional investors have recently modified their holdings of the company. PMV Capital Advisers LLC purchased a new position in Lam Research in the fourth quarter valued at $25,000. Bayban purchased a new stake in Lam Research during the 4th quarter worth about $26,000. Vermillion Wealth Management Inc. purchased a new stake in Lam Research during the 1st quarter worth about $26,000. Cedar Mountain Advisors LLC boosted its position in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 85 shares in the last quarter. Finally, Triumph Capital Management acquired a new position in shares of Lam Research during the 3rd quarter worth about $27,000. 84.61% of the stock is currently owned by institutional investors and hedge funds.

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.