Lam Research (NASDAQ:LRCX) Stock Price Down 11.8% Following Analyst Downgrade

Lam Research Corporation (NASDAQ:LRCX) shares were down 11.8% during mid-day trading on Thursday after Mizuho lowered their price target on the stock from $365.00 to $360.00. Mizuho currently has an outperform rating on the stock. Lam Research traded as low as $227.68 and last traded at $230.15. Approximately 22,861,010 shares traded hands during mid-day trading, an increase of 113% from the average session volume of 10,747,353 shares. The stock had previously closed at $260.81.

A number of other research analysts have also recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $375.00 price objective on shares of Lam Research in a research report on Monday. Weiss Ratings lowered shares of Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Citigroup reaffirmed a “buy” rating and set a $435.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday. Zacks Research upgraded shares of Lam Research from a “hold” rating to a “strong-buy” rating in a report on Friday, July 17th. Finally, Stifel Nicolaus increased their price objective on shares of Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $354.55.

Insider Transactions at Lam Research

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

Lam Research News Summary

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

• Positive Sentiment: Record quarterly performance: Lam Research reported fiscal Q1 2027 revenue of $8.22 billion and adjusted EPS of $2.20, exceeding consensus estimates of $8.14 billion and $2.18. Revenue increased 54.4% year over year, supported by strong systems demand, NAND spending and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Profitability reached a record: Operating margin exceeded 40% for the first time, while management highlighted longer-term growth opportunities in AI infrastructure, memory upgrades and advanced semiconductor manufacturing. Lam Research Just Posted Its First-Ever 40% Operating Margin But Sold Off
• Positive Sentiment: Strong industry outlook: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, suggesting AI-related demand and chipmakers’ capital-investment plans remain intact. Some analysts continue to rate LRCX as a buy or outperform despite reducing price targets. LRCX Q1 Earnings Call Highlights $200B-Plus WFE Outlook for 2027
• Neutral Sentiment: Broader chip-sector pressure: Semiconductor stocks sold off broadly as investors reassessed AI spending and near-term capital-expenditure expectations, adding to the pressure on LRCX beyond company-specific concerns. Two Big Reasons Micron and Other Chip Stocks Are Falling
• Negative Sentiment: Supply bottlenecks limited the outlook: Management indicated component and production constraints are preventing the company from shipping as much equipment as demand would support. This raised concerns that near-term revenue growth could be delayed despite robust orders. Lam Research Says Supply Bottlenecks Are Holding Back Revenue
• Negative Sentiment: China revenue is expected to weaken: Lam warned that China’s contribution will decline substantially in the December quarter after accounting for about 35% of September-quarter revenue, creating an additional headwind to growth. Lam Research Stock Falls Despite Record Results
• Negative Sentiment: Analysts lowered targets: Mizuho, Morgan Stanley and Needham reduced their price targets, reflecting supply-chain and China-related risks. Although ratings remained generally bullish, the cuts signaled that analysts see less near-term upside and helped drive the post-earnings selloff. Lam Research Analysts Cut Their Forecasts Following Q1 Earnings

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Strategic Planning Group LLC boosted its holdings in Lam Research by 23.5% in the third quarter. Strategic Planning Group LLC now owns 76,375 shares of the semiconductor company’s stock valued at $25,090,000 after purchasing an additional 14,519 shares during the last quarter. Ledyard National Bank lifted its holdings in shares of Lam Research by 9.7% in the 3rd quarter. Ledyard National Bank now owns 828 shares of the semiconductor company’s stock valued at $272,000 after buying an additional 73 shares during the period. Root Financial Partners LLC boosted its stake in shares of Lam Research by 7.6% in the third quarter. Root Financial Partners LLC now owns 7,537 shares of the semiconductor company’s stock worth $2,476,000 after buying an additional 534 shares during the last quarter. Precedent Wealth Partners LLC grew its holdings in Lam Research by 1.2% during the third quarter. Precedent Wealth Partners LLC now owns 34,501 shares of the semiconductor company’s stock worth $11,334,000 after acquiring an additional 399 shares during the period. Finally, E. Ohman J or Asset Management AB grew its holdings in Lam Research by 2.2% during the third quarter. E. Ohman J or Asset Management AB now owns 58,601 shares of the semiconductor company’s stock worth $19,251,000 after acquiring an additional 1,250 shares during the period. Hedge funds and other institutional investors own 84.61% of the company’s stock.

Lam Research Stock Performance

The stock has a market capitalization of $288.02 billion, a price-to-earnings ratio of 39.96, a price-to-earnings-growth ratio of 0.96 and a beta of 1.85. The firm has a fifty day moving average of $306.08 and a 200 day moving average of $309.80. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.18 by $0.02. The business had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The business’s quarterly revenue was up 54.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.26 EPS. On average, sell-side analysts anticipate that Lam Research Corporation will post 9.35 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Wednesday, September 23rd. Lam Research’s payout ratio is currently 22.92%.

About Lam Research

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.