Lam Research (NASDAQ:LRCX) Shares Down 4.6% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) traded down 4.6% during trading on Tuesday . The stock traded as low as $317.41 and last traded at $327.92. Approximately 10,192,976 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 11,229,070 shares. The stock had previously closed at $343.84.

Analyst Ratings Changes

LRCX has been the subject of a number of recent research reports. The Goldman Sachs Group reiterated a “buy” rating and set a $290.00 price objective on shares of Lam Research in a research note on Thursday, April 23rd. Jefferies Financial Group set a $335.00 price target on shares of Lam Research and gave the company a “buy” rating in a report on Thursday, July 30th. BNP Paribas Exane upped their price target on shares of Lam Research from $250.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday, April 23rd. Raymond James Financial set a $425.00 price objective on shares of Lam Research in a research note on Wednesday, June 10th. Finally, TD Cowen restated a “buy” rating and set a $400.00 price objective (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Lam Research presently has an average rating of “Moderate Buy” and an average price target of $358.47.

Lam Research Trading Down 4.6%

The stock has a fifty day moving average of $339.85 and a 200 day moving average of $284.31. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The company has a market capitalization of $410.53 billion, a PE ratio of 56.96, a PEG ratio of 1.32 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. The business had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s revenue was up 30.0% on a year-over-year basis. During the same period last year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts predict that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is presently 18.06%.

Insider Buying and Selling at Lam Research

In other news, SVP Neil J. Fernandes sold 7,659 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was 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 owned 58,470 shares in the company, 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, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares in the company, valued at $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 80,441 shares of company stock worth $27,614,296. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bayban bought a new stake in Lam Research in the 4th quarter worth approximately $26,000. Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research in the first quarter valued at $26,000. Cedar Mountain Advisors LLC grew its holdings in shares of Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 85 shares in the last quarter. Paladin Partners LLC bought a new stake in Lam Research in the second quarter worth $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Lam Research during the fourth quarter valued at $27,000. 84.61% of the stock is owned by institutional investors.

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.