Lam Research (NASDAQ:LRCX) Stock Price Down 6.9% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s share price traded down 6.9% during trading on Tuesday . The company traded as low as $313.10 and last traded at $326.13. 15,418,912 shares were traded during trading, an increase of 35% from the average session volume of 11,417,704 shares. The stock had previously closed at $350.20.

Key Lam Research News

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

• Positive Sentiment: Lam Research was added to the Russell Top 50, which can improve institutional ownership and index-driven demand over time. Article: Lam Research (LRCX) Joins Russell Top 50 On An AI Narrative That Looks Fully Valued
• Positive Sentiment: Wall Street sentiment remains constructive, with Morgan Stanley, Susquehanna, Goldman Sachs, Cantor Fitzgerald and others raising price targets on LRCX amid expectations for continued AI-driven wafer-fab equipment demand. Article: Lam Research had its price target raised by Morgan Stanley…
• Positive Sentiment: Zacks highlighted Lam Research as a strong long-term stock, reinforcing the view that earnings momentum and industry demand remain favorable. Article: Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Positive Sentiment: Recent analyst notes said semiconductor equipment demand is being supported by AI infrastructure buildout and stronger foundry spending. Article: Analysts Just Raised Price Targets On These 3 Semiconductor Equipment Stocks (LRCX)
• Neutral Sentiment: Lam Research also appeared in several “chip rally” and “stocks making the biggest moves” roundups, suggesting it remains a focal point for momentum traders rather than being driven by company-specific news. Article: Stocks making the biggest moves premarket: Lam Research, Intel, Datadog & more
• Negative Sentiment: Insider trading data shows frequent selling and no open-market insider purchases over the last six months, which may weigh on investor sentiment.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on LRCX shares. Mizuho set a $380.00 price objective on Lam Research and gave the company an “outperform” rating in a report on Wednesday, May 27th. Raymond James Financial set a $425.00 price target on Lam Research in a report on Wednesday, June 10th. Cantor Fitzgerald set a $500.00 price objective on shares of Lam Research and gave the company an “overweight” rating in a report on Monday, June 29th. Jefferies Financial Group raised their target price on shares of Lam Research from $285.00 to $315.00 and gave the stock a “buy” rating in a research note on Thursday, April 23rd. Finally, TD Cowen upped their price target on shares of Lam Research from $290.00 to $340.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Twenty-eight equities research 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 an average rating of “Moderate Buy” and an average target price of $347.75.

Lam Research Price Performance

The company has a market cap of $407.85 billion, a price-to-earnings ratio of 61.53, a PEG ratio of 2.10 and a beta of 1.80. 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 business has a fifty day moving average price of $326.35 and a 200 day moving average price of $258.02.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $5.70 billion. During the same period in the previous year, the firm posted $1.04 EPS. The firm’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. As a group, research analysts anticipate that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

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

Insider Activity

In other 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 transaction 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 position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of Lam Research stock in a transaction 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 of the company’s stock, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 86,339 shares of company stock valued at $27,680,267. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of LRCX. Brighton Jones LLC boosted its stake 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 purchasing an additional 12,936 shares during the last quarter. Caxton Associates LLP bought a new position in shares of Lam Research in the first quarter valued at approximately $239,000. Gabelli Funds LLC bought a new position in shares of Lam Research in the second quarter valued at approximately $253,000. NewEdge Advisors LLC boosted its position 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 buying an additional 2,661 shares during the last quarter. Finally, Osterweis Capital Management Inc. grew its holdings in Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock worth $77,000 after buying an additional 781 shares in the last quarter. Institutional investors and hedge funds 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.