Lam Research (NASDAQ:LRCX) Stock Falls 3.4% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX)’s stock price dropped 3.4% during trading on Tuesday. The stock traded as low as $330.85 and last traded at $333.89. Approximately 7,629,486 shares changed hands during trading, a decline of 29% from the average daily volume of 10,758,769 shares. The stock had previously closed at $345.80.

Wall Street Analyst Weigh In

Several research firms have weighed in on LRCX. Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 17th. Susquehanna reiterated a “positive” rating and issued a $475.00 target price (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. B. Riley Financial raised their price target on shares of Lam Research from $350.00 to $390.00 and gave the stock a “buy” rating in a research report on Thursday, October 1st. Evercore restated an “outperform” rating and set a $355.00 price objective on shares of Lam Research in a research note on Monday, July 20th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $390.00 price objective on shares of Lam Research in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and a consensus target price of $364.59.

Lam Research Stock Down 3.4%

The business’s fifty day simple moving average is $307.19 and its two-hundred day simple moving average is $303.68. The company has a market cap of $417.84 billion, a PE ratio of 57.97, a PEG ratio of 1.38 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91.

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

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date is Wednesday, September 23rd. Lam Research’s dividend payout ratio (DPR) is presently 22.92%.

Insider Transactions at Lam Research

In other Lam Research news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of Lam Research stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the sale, the director owned 20,995 shares in the company, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 32,839 shares of company stock valued at $10,644,740 in the last three months. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently bought and sold shares of LRCX. Polaris Financial Partners purchased a new position in Lam Research during the 3rd quarter worth $4,814,000. Bank of America Corp DE boosted its holdings in shares of Lam Research by 5.5% in the second quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock valued at $4,872,426,000 after acquiring an additional 584,489 shares in the last quarter. Rokos Capital Management LLP boosted its holdings in shares of Lam Research by 42.0% in the first quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock valued at $55,532,000 after acquiring an additional 76,840 shares in the last quarter. Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Lam Research during the first quarter worth about $59,973,000. Finally, Y Intercept Hong Kong Ltd purchased a new position in Lam Research during the first quarter worth about $26,489,000. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company’s portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.