Lam Research (NASDAQ:LRCX) Trading Down 10.2% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) was down 10.2% during trading on Thursday . The company traded as low as $342.48 and last traded at $351.41. Approximately 18,784,218 shares were traded during mid-day trading, an increase of 65% from the average session volume of 11,392,094 shares. The stock had previously closed at $391.26.

Analysts Set New Price Targets

LRCX has been the subject of several research reports. Seaport Research Partners initiated coverage on Lam Research in a research report on Monday, May 4th. They issued a “buy” rating and a $300.00 target price for the company. Rothschild & Co Redburn increased their price objective on shares of Lam Research from $305.00 to $420.00 and gave the company a “buy” rating in a research note on Wednesday, June 17th. TD Cowen raised their price objective on shares of Lam Research from $290.00 to $340.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. Bank of America lifted their target price on shares of Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Finally, Stifel Nicolaus set a $500.00 target price on shares of Lam Research in a research note on Monday. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $345.39.

Lam Research Price Performance

The stock has a fifty day moving average of $326.35 and a 200-day moving average of $257.36. The firm has a market capitalization of $439.46 billion, a P/E ratio of 66.30, a PEG ratio of 2.10 and a beta of 1.80. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.11. The firm had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The company’s revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities analysts predict that Lam Research Corporation will post 5.68 EPS for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Activity at Lam Research

In related news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the sale, the senior vice president owned 58,470 shares of the company’s stock, valued at $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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 stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the completion of the transaction, the insider owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 86,339 shares of company stock valued at $27,680,267 over the last quarter. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several large investors have recently made changes to their positions in LRCX. PMV Capital Advisers LLC bought a new stake in Lam Research during the 4th quarter worth about $25,000. Stance Capital LLC bought a new position in shares of Lam Research in the 3rd quarter valued at about $26,000. Bayban acquired a new stake in shares of Lam Research during the 4th quarter worth approximately $26,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Lam Research during the 1st quarter worth approximately $26,000. Finally, Cedar Mountain Advisors LLC grew its position in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after buying an additional 85 shares during the period. Institutional investors and hedge funds 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.