Lam Research (NASDAQ:LRCX) Stock Falls 2.9% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s stock price fell 2.9% on Monday. The stock traded as low as $308.01 and last traded at $309.56. 6,079,867 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 10,672,290 shares. The stock had previously closed at $318.84.

Analyst Ratings Changes

A number of brokerages have recently issued reports on LRCX. TD Cowen reiterated a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Evercore restated an “outperform” rating and issued a $355.00 price objective on shares of Lam Research in a research report on Monday, July 20th. Stifel Nicolaus upped 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. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $320.00 target price on shares of Lam Research in a research note on Thursday, July 30th. Finally, Zacks Research upgraded shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $364.59.

Lam Research Trading Down 2.9%

The stock has a 50 day moving average of $310.98 and a 200 day moving average of $306.38. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The firm has a market cap of $387.39 billion, a P/E ratio of 53.74, a PEG ratio of 1.26 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.13. The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The company’s revenue was up 30.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.33 earnings per share. 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 9.34 EPS for the current year.

Lam Research Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio is presently 22.92%.

Insider Activity at Lam Research

In other Lam Research news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction that occurred on 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 $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the transaction, the director owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.31% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently made changes to their positions in the business. World Equity Group Inc. increased 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 purchasing an additional 29 shares during the period. Vann Equity Management LLC increased its stake in shares of Lam Research by 1.1% in the third quarter. Vann Equity Management LLC now owns 2,873 shares of the semiconductor company’s stock worth $944,000 after buying an additional 31 shares during the period. Tenzing Financial LLC increased its stake in shares of Lam Research by 3.5% in the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after buying an additional 34 shares during the period. Advus Financial Partners LLC increased its stake in shares of Lam Research by 1.0% in the second quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock worth $1,550,000 after buying an additional 34 shares during the period. Finally, Paragon Private Wealth Management LLC raised its holdings in Lam Research by 1.3% during the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after buying an additional 35 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company’s portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.