Lam Research (NASDAQ:LRCX) Trading Down 5.7% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) dropped 5.7% on Friday . The company traded as low as $374.31 and last traded at $379.09. 19,490,885 shares changed hands during mid-day trading, an increase of 74% from the average session volume of 11,200,616 shares. The stock had previously closed at $401.82.

Lam Research News Roundup

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

• Positive Sentiment: Wells Fargo raised its price target on Lam Research to $450 from $365 and kept an Overweight rating, signaling continued confidence in the company’s growth outlook and semiconductor capital equipment demand. Wells Fargo Raises its Price Target on Lam Research (LRCX)
• Positive Sentiment: Lam Research was highlighted by Zacks as a stock to watch, citing earnings growth and price strength, which may reinforce investor optimism around the stock’s momentum. Earnings Growth & Price Strength Make Lam Research (LRCX) a Stock to Watch
• Positive Sentiment: Micron’s strong earnings and upbeat memory-chip outlook lifted chip stocks broadly, while Lam Research gained attention for opening a Boise office to get closer to Micron’s memory expansion plans, underscoring its exposure to a key growth customer. Lam Research (LRCX) Opens Boise Office To Get Closer To Micron’s Memory Expansion
• Positive Sentiment: Lam Research was among the after-hours gainers alongside other semiconductor names, reflecting broader enthusiasm for AI chip stocks and improving sentiment across the sector. Top After-Hours Gainers Today Beyond Micron: QCOM, AMAT, LRCX Surge
• Neutral Sentiment: Brokerage data showed Lam Research with an average “Moderate Buy” recommendation, which supports a constructive but not especially new fundamental outlook. Lam Research Corporation (NASDAQ:LRCX) Receives Average Recommendation of “Moderate Buy” from Brokerages
• Neutral Sentiment: A report on short interest noted no meaningful short-interest build, so it does not appear to be a major driver for the stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Susquehanna raised their price target on shares of Lam Research from $350.00 to $385.00 and gave the company a “positive” rating in a research note on Thursday, April 23rd. Berenberg Bank boosted their price target on Lam Research from $265.00 to $335.00 and gave the stock a “buy” rating in a research report on Thursday, April 23rd. Wall Street Zen downgraded Lam Research from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Seaport Research Partners initiated coverage on Lam Research in a report on Monday, May 4th. They issued a “buy” rating and a $300.00 price objective on the stock. Finally, HSBC raised their target price on shares of Lam Research from $221.00 to $247.00 and gave the stock a “hold” rating in a research note on Friday, April 24th. Twenty-eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Lam Research presently has a consensus rating of “Moderate Buy” and an average target price of $334.43.

Lam Research Stock Down 5.7%

The firm has a 50-day moving average of $313.90 and a two-hundred day moving average of $249.58. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The company has a market capitalization of $474.08 billion, a PE ratio of 71.53, a price-to-earnings-growth ratio of 3.12 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last announced its quarterly 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 business had revenue of $5.84 billion for 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%.The company’s quarterly revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities research analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

Insiders Place Their Bets

In other Lam Research news, 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 transaction of $4,635,893.80. Following the completion of the sale, the senior vice president directly owned 66,129 shares in the company, valued at $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the business’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 completion of the sale, the insider directly owned 53,205 shares in the company, valued at $13,762,005.30. This trade represents a 10.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 86,339 shares of company stock valued at $27,680,267 over the last 90 days. 0.31% of the stock is owned by company insiders.

Institutional Trading of Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. PMV Capital Advisers LLC acquired a new stake in shares of Lam Research in the fourth quarter valued at $25,000. Stance Capital LLC acquired a new position in Lam Research during the 3rd quarter worth about $26,000. Bayban acquired a new position in Lam Research during the 4th quarter worth about $26,000. Vermillion Wealth Management Inc. purchased a new position in Lam Research during the 1st quarter valued at about $26,000. Finally, Cedar Mountain Advisors LLC boosted its holdings in Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 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.