Lam Research (NASDAQ:LRCX) Shares Down 9.7% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 9.7% during trading on Wednesday . The stock traded as low as $381.00 and last traded at $391.26. Approximately 18,564,439 shares changed hands during trading, an increase of 64% from the average daily volume of 11,333,401 shares. The stock had previously closed at $433.33.

Lam Research News Summary

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

• Positive Sentiment: Several recent articles highlight that Lam Research is benefiting from robust demand for wafer-fab equipment tied to AI infrastructure, advanced memory, foundry, and advanced packaging, which could support further revenue and margin expansion. Can AI Demand Help Lam Research Hit New Highs for Gross Margin in Q4?
• Positive Sentiment: Analysts remain broadly constructive on LRCX, with recent target increases as high as $475 to $500 and continued buy/overweight ratings, reinforcing expectations for upside. Is Lam Research (LRCX) a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: The stock’s strong year-to-date rally and record highs in chip-equipment peers suggest momentum is being driven by sector-wide optimism around semiconductor capital spending. Lam Research Stock, Chip Gear Peers Hit Record Highs
• Positive Sentiment: Lam Research was added to the Russell Top 50 Index, which can boost institutional visibility and passive fund demand. Lam Research (LRCX) Joins The Russell Top 50 Index As Its Market Profile Grows
• Neutral Sentiment: Multiple writeups focus on the company’s history of beating earnings estimates and suggest another beat is possible, but this is more of a preview than a fresh catalyst. Will Lam Research (LRCX) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Some coverage raises valuation concerns after the stock’s big run, but this has not yet overwhelmed the positive AI and earnings narrative. Lam Research (NASDAQ:LRCX) Rally Puts Valuation In Focus

Analyst Upgrades and Downgrades

Several research analysts have issued reports on LRCX shares. BNP Paribas Exane increased their price objective on Lam Research from $250.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday, April 23rd. Cantor Fitzgerald set a $500.00 target price on shares of Lam Research and gave the stock an “overweight” rating in a report on Monday. Raymond James Financial set a $425.00 target price on shares of Lam Research in a research report on Wednesday, June 10th. TD Cowen lifted their price target on shares of Lam Research from $290.00 to $340.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Finally, Wells Fargo & Company restated an “overweight” rating and issued a $450.00 price target (up from $365.00) on shares of Lam Research in a research report on Monday, June 22nd. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $345.39.

Lam Research Trading Down 9.7%

The company’s 50-day moving average is $320.21 and its 200-day moving average is $253.79. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The firm has a market cap of $489.45 billion, a price-to-earnings ratio of 73.85, a P/E/G ratio of 3.40 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 earnings per share for the quarter, beating 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 net margin of 30.94% and a return on equity of 66.21%. The company’s quarterly revenue was up 23.8% compared to the same quarter last year. During the same quarter last year, the company posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, research analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be 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 is Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is presently 19.62%.

Insiders Place Their Bets

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were 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 directly owned 58,470 shares in the company, valued at $18,102,312. This trade represents a 11.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 86,339 shares of company stock valued at $27,680,267. 0.31% of the stock is currently owned by insiders.

Institutional Trading of Lam Research

Several institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC increased its stake in Lam Research by 1,032.4% in the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after purchasing an additional 12,936 shares in the last quarter. Caxton Associates LLP bought a new position in shares of Lam Research during the first quarter worth $239,000. Gabelli Funds LLC bought a new position in shares of Lam Research during the second quarter worth $253,000. NewEdge Advisors LLC grew its holdings in shares of Lam Research by 2.7% in the 2nd quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock valued at $9,785,000 after buying an additional 2,661 shares during the period. Finally, Osterweis Capital Management Inc. increased its position in shares of Lam Research by 5,206.7% in the 2nd quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock valued at $77,000 after buying an additional 781 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

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.