Lam Research (NASDAQ:LRCX) Shares Down 1.2% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) traded down 1.2% during trading on Wednesday . The stock traded as low as $314.28 and last traded at $318.93. 8,789,665 shares traded hands during mid-day trading, a decline of 19% from the average session volume of 10,870,247 shares. The stock had previously closed at $322.68.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on LRCX shares. Deutsche Bank Aktiengesellschaft increased their price target on shares of Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Erste Group Bank downgraded shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Thursday, April 2nd. UBS Group set a $300.00 target price on shares of Lam Research in a report on Thursday, January 29th. JPMorgan Chase & Co. raised their target price on Lam Research from $300.00 to $315.00 and gave the stock an “overweight” rating in a research note on Thursday, April 23rd. Finally, BNP Paribas Exane boosted their price target on Lam Research from $250.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday, April 23rd. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $295.07.

Lam Research Stock Performance

The company’s 50-day moving average price is $262.01 and its 200 day moving average price is $220.11. The stock has a market capitalization of $397.14 billion, a PE ratio of 60.28, a PEG ratio of 2.64 and a beta of 1.81. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The company had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. During the same period in the prior year, the firm earned $1.04 earnings per share. Lam Research’s revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities research analysts expect that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Announces Dividend

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

Insider Activity at Lam Research

In related news, insider Ava Harter sold 6,010 shares of the company’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the sale, the insider directly owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the completion of the transaction, the senior vice president owned 66,129 shares of the company’s stock, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 120,066 shares of company stock worth $27,953,242 over the last ninety days. 0.31% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently bought and sold shares of the business. Brighton Jones LLC increased its position in Lam Research by 1,032.4% during the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after buying an additional 12,936 shares in the last quarter. Caxton Associates LLP purchased a new stake in shares of Lam Research in the first quarter worth $239,000. Gabelli Funds LLC purchased a new stake in shares of Lam Research in the second quarter worth $253,000. NewEdge Advisors LLC increased its holdings in shares of Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock valued at $9,785,000 after acquiring an additional 2,661 shares in the last quarter. Finally, Osterweis Capital Management Inc. raised 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 worth $77,000 after purchasing an additional 781 shares during the last quarter. 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.