Lam Research (NASDAQ:LRCX) Shares Down 1.6% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX) shares traded down 1.6% during mid-day trading on Tuesday . The company traded as low as $263.71 and last traded at $273.38. 8,289,350 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 10,977,290 shares. The stock had previously closed at $277.96.

Key Lam Research News

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

• Positive Sentiment: Lam Research opened a new research lab in Salzburg, Austria, to advance chip-packaging technology that aims to increase chip density and reduce costs, reinforcing its exposure to AI-related spending. Reuters: Lam Research opens Austria lab to advance chip packaging, cut costs
• Positive Sentiment: Sanford C. Bernstein raised its price target on LRCX to $340 from $325 and reiterated an Outperform rating, signaling further upside expectations. MarketScreener: Bernstein adjusts price target on Lam Research
• Positive Sentiment: Morgan Stanley upgraded Lam Research to Overweight and raised its outlook after lifting wafer fabrication equipment spending forecasts, adding to bullish analyst momentum. Barchart: LRCX Overweight
• Positive Sentiment: The company declared a quarterly dividend of $0.26 per share, which can support investor confidence in Lam Research’s cash generation and capital-return profile. Yahoo Finance: Lam Research Corporation Declares Quarterly Dividend
• Neutral Sentiment: Technical coverage noted that LRCX recently moved above its 20-day moving average, a short-term bullish signal but not a fundamental change by itself. Zacks: Lam Research just overtook the 20-day moving average
• Neutral Sentiment: Recent commentary also highlighted Lam Research as a major beneficiary of the AI chip manufacturing boom, which supports the broader positive narrative already driving the stock. 247WallSt: Semiconductor Equipment Stocks Powering the AI Chip Manufacturing Boom
• Negative Sentiment: One comparison piece argued that Applied Materials has the edge over LRCX due to its more diversified tools and lower valuation, which may temper enthusiasm for Lam Research relative to peers. Zacks: Lam Research vs. Applied Materials

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Susquehanna upped their price objective on Lam Research from $350.00 to $385.00 and gave the stock a “positive” rating in a report on Thursday, April 23rd. KeyCorp reiterated a “sector weight” rating on shares of Lam Research in a report on Thursday, January 29th. Wall Street Zen cut Lam Research from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. New Street Research increased their target price on Lam Research from $235.00 to $280.00 and gave the company a “neutral” rating in a report on Monday, April 27th. Finally, Erste Group Bank cut Lam Research from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. Twenty-seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and a consensus price target of $293.46.

Lam Research Price Performance

The company has a market capitalization of $377.97 billion, a PE ratio of 57.03, a PEG ratio of 2.42 and a beta of 1.81. The firm has a fifty day moving average of $252.34 and a two-hundred day moving average of $214.71. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35.

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

Insiders Place Their Bets

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction that occurred 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 sale, the senior vice president owned 66,129 shares in the company, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through 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 stock in a transaction that occurred 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 completion of the sale, the insider 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 position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 120,066 shares of company stock worth $27,953,242. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors and hedge funds have recently bought and sold shares of the business. Cedar Mountain Advisors LLC raised its position in shares of Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 85 shares in the last quarter. Vermillion Wealth Management Inc. bought a new position in Lam Research during the 1st quarter valued at approximately $26,000. PMV Capital Advisers LLC bought a new position in Lam Research during the 4th quarter valued at approximately $25,000. Bayban bought a new position in Lam Research during the 4th quarter valued at approximately $26,000. Finally, Mcguire Capital Advisors Inc. bought a new position in Lam Research during the 4th quarter valued at approximately $27,000. Hedge funds and other institutional investors 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.