Lam Research (NASDAQ:LRCX) Shares Down 4% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 4% on Wednesday. The stock traded as low as $218.50 and last traded at $221.43. 14,532,871 shares traded hands during trading, an increase of 35% from the average session volume of 10,792,535 shares. The stock had previously closed at $230.72.

Lam Research News Roundup

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

• Positive Sentiment: The authorization allows Lam Research to repurchase up to about 9% of its shares. Investors may view the plan as a sign of management confidence and a potential source of support for per-share earnings. Lam Research Shares Gain on $25 Billion Buyback Authorization
• Positive Sentiment: The company also declared a quarterly dividend of $0.33 per share, payable January 6 to shareholders of record December 2. Lam Research Corporation Announces $25 Billion Share Repurchase Authorization and Declares Quarterly Dividend
• Neutral Sentiment: The buyback has drawn attention to LRCX’s significant presence in semiconductor, technology and Nasdaq-100 funds; overlapping holdings could amplify the stock’s effect on investors’ portfolios in either direction. Own a Semiconductor ETF? Lam Research’s Buyback Move Affects You
• Negative Sentiment: Broader chip-sector volatility remains a risk: recent coverage cited concerns about AI-related spending, possible capital-expenditure slowdowns, regulation and investor profit-taking. Those worries could temper gains if they persist. Chip Stocks Just Had Their Second-Worst Day on Record

Analyst Ratings Changes

LRCX has been the subject of a number of recent analyst reports. Morgan Stanley set a $339.00 price objective on Lam Research and gave the company an “overweight” rating in a research report on Thursday, October 22nd. Stifel Nicolaus increased their price target on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Needham & Company LLC decreased their price objective on Lam Research from $390.00 to $290.00 and set a “buy” rating for the company in a report on Thursday, October 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $350.00 price objective (down from $450.00) on shares of Lam Research in a research report on Thursday, July 30th. Finally, HSBC restated a “hold” rating and issued a $333.00 target price on shares of Lam Research in a research note on Monday, July 27th. Twenty-six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, Lam Research currently has an average rating of “Moderate Buy” and an average target price of $360.23.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.86. The company has a market capitalization of $250.38 billion, a PE ratio of 29.87, a PEG ratio of 0.82 and a beta of 1.97. The firm has a 50-day moving average of $284.37 and a 200 day moving average of $283.67.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.18 by $0.02. The company had revenue of $8.22 billion for the quarter, compared to the consensus estimate of $8.14 billion. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. Lam Research’s quarterly revenue was up 54.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.26 earnings per share. As a group, research analysts anticipate that Lam Research Corporation will post 9.59 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 6th. Shareholders of record on Wednesday, December 2nd will be given a dividend of $0.33 per share. The ex-dividend date is Wednesday, December 2nd. This represents a $1.32 dividend on an annualized basis and a yield of 0.7%. Lam Research’s dividend payout ratio is currently 19.67%.

Lam Research declared that its board has initiated a stock buyback plan on Thursday, November 5th that authorizes the company to buy back $25 billion in shares. This buyback authorization authorizes the semiconductor company to buy up to 9% of its shares through open market purchases. Share buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Lam Research

In other news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company’s stock, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the sale, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. World Equity Group Inc. raised its position in Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 29 shares during the last quarter. Vann Equity Management LLC lifted its holdings in shares of Lam Research by 1.1% in the third quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock valued at $944,000 after purchasing an additional 31 shares in the last quarter. Tenzing Financial LLC boosted its holdings in Lam Research by 3.5% during the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after purchasing an additional 34 shares during the last quarter. Advus Financial Partners LLC boosted its position in Lam Research by 1.0% in the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock worth $1,550,000 after purchasing an additional 34 shares during the last quarter. Finally, Paragon Private Wealth Management LLC grew its position in shares of Lam Research by 1.3% during the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after acquiring an additional 35 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Lam Research Company Profile

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits.

The company’s wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations.

Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.