Lam Research (NASDAQ:LRCX) Trading Down 2.4% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX)’s stock price fell 2.4% on Friday . The company traded as low as $222.05 and last traded at $228.36. 25,995,841 shares changed hands during trading, an increase of 113% from the average session volume of 12,183,320 shares. The stock had previously closed at $233.99.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on LRCX shares. B. Riley Financial reissued a “buy” rating on shares of Lam Research in a research report on Thursday, January 15th. The Goldman Sachs Group set a $262.00 price target on Lam Research and gave the stock a “buy” rating in a research report on Thursday, January 29th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $290.00 price objective (up from $260.00) on shares of Lam Research in a research note on Thursday, January 29th. Argus boosted their price objective on Lam Research from $175.00 to $280.00 in a report on Tuesday, February 3rd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Lam Research in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $245.35.

Lam Research Price Performance

The company’s 50-day simple moving average is $226.92 and its 200 day simple moving average is $177.57. The company has a market cap of $285.17 billion, a PE ratio of 46.80, a PEG ratio of 2.46 and a beta of 1.77. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.61 and a current ratio of 2.26.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.10. The business had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The company’s revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.91 earnings per share. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, sell-side analysts predict that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, March 4th. This represents a $1.04 annualized dividend and a yield of 0.5%. Lam Research’s dividend payout ratio is 21.31%.

Insider Buying and Selling at Lam Research

In other news, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the completion of the transaction, the chief financial officer owned 1,081,705 shares in the company, valued at approximately $242,334,371.15. This trade represents a 4.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Eric Brandt sold 35,000 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $225.60, for a total value of $7,896,000.00. Following the transaction, the director directly owned 253,705 shares of the company’s stock, valued at approximately $57,235,848. This represents a 12.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 130,886 shares of company stock valued at $29,658,802 in the last quarter. Corporate insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in LRCX. Triumph Capital Management raised its holdings in shares of Lam Research by 22.5% in the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 45 shares in the last quarter. Traphagen Investment Advisors LLC increased its holdings in Lam Research by 2.4% in the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock valued at $336,000 after buying an additional 46 shares during the last quarter. Bank of Jackson Hole Trust increased its holdings in Lam Research by 12.6% in the fourth quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company’s stock valued at $73,000 after buying an additional 48 shares during the last quarter. Field & Main Bank raised its stake in Lam Research by 1.1% in the fourth quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company’s stock valued at $790,000 after buying an additional 50 shares in the last quarter. Finally, Capital Advisors Ltd. LLC lifted its holdings in Lam Research by 1.1% during the 4th quarter. Capital Advisors Ltd. LLC now owns 4,646 shares of the semiconductor company’s stock worth $795,000 after buying an additional 51 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Company Profile

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.