Lam Research (NASDAQ:LRCX) Shares Down 1.2% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s stock price dropped 1.2% during trading on Wednesday. The stock traded as low as $298.56 and last traded at $307.28. Approximately 9,107,479 shares changed hands during mid-day trading, a decline of 16% from the average session volume of 10,898,552 shares. The stock had previously closed at $310.96.

Analyst Upgrades and Downgrades

LRCX has been the subject of a number of recent analyst reports. Wells Fargo & Company reaffirmed an “overweight” rating and set a $350.00 price target (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Raymond James Financial set a $425.00 price objective on shares of Lam Research in a research report on Wednesday, June 10th. Barclays restated an “overweight” rating and set a $335.00 target price (up from $275.00) on shares of Lam Research in a research note on Thursday, June 11th. Evercore reaffirmed an “outperform” rating and issued a $355.00 target price on shares of Lam Research in a report on Monday, July 20th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $361.81.

Lam Research Price Performance

The company has a 50 day moving average price of $304.44 and a 200-day moving average price of $298.03. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company has a market cap of $395.44 billion, a price-to-earnings ratio of 54.74, a P/E/G ratio of 1.23 and a beta of 1.85.

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

Lam Research Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be issued a $0.33 dividend. The ex-dividend date is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a yield of 0.4%. Lam Research’s dividend payout ratio (DPR) is currently 18.06%.

Insider Buying and Selling

In related news, 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 transaction of $3,007,970.18. Following the completion of the transaction, the director directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Abhijit Talwalkar sold 18,282 shares of Lam Research stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% 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. Insiders sold a total of 32,839 shares of company stock valued at $10,644,740 in the last three months. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently made changes to their positions in LRCX. World Equity Group Inc. boosted its stake in Lam Research by 0.5% in the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after buying an additional 29 shares during the last quarter. Tenzing Financial LLC increased its stake in shares of Lam Research by 3.5% during the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock valued at $441,000 after acquiring an additional 34 shares during the last quarter. Advus Financial Partners LLC lifted its holdings in shares of Lam Research by 1.0% during the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock worth $1,550,000 after acquiring an additional 34 shares during the period. Paragon Private Wealth Management LLC boosted its position in shares of Lam Research by 1.3% in the second quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock worth $1,178,000 after acquiring an additional 35 shares during the last quarter. Finally, Gibraltar Capital Management Inc. boosted its position in shares of Lam Research by 3.6% in the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock worth $455,000 after acquiring an additional 36 shares during the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.