Lam Research (NASDAQ:LRCX) Shares Gap Down – What’s Next?

Shares of Lam Research Corporation (NASDAQ:LRCX) gapped down before the market opened on Tuesday . The stock had previously closed at $350.20, but opened at $322.41. Lam Research shares last traded at $321.6720, with a volume of 2,644,085 shares traded.

Lam Research News Roundup

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

• Positive Sentiment: Lam Research announced it will host its June-quarter financial conference call and webcast on July 29, giving investors a near-term event to watch for results and guidance. Lam Research Corporation Announces June Quarter Financial Conference Call
• Positive Sentiment: Recent commentary from analysts and market coverage continues to describe LRCX as a strong long-term stock, reflecting confidence in demand tied to AI, advanced chips, and wafer-fab equipment spending. Why Lam Research (LRCX) is a top stock for the long term
• Positive Sentiment: Wall Street price targets remain constructive, with several firms recently reiterating buy or outperform ratings and targets above the current trading range, which can help support the stock. Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Neutral Sentiment: Lam Research was added to the Russell Top 50, which can affect index-related trading flows over time but is not an immediate earnings driver. Lam Research (LRCX) Joins Russell Top 50 On An AI Narrative That Looks Fully Valued
• Neutral Sentiment: The company’s conference call announcement does not change fundamentals by itself, but it could increase attention ahead of the next earnings report. Lam Research Corporation Announces June Quarter Financial Conference Call
• Negative Sentiment: LRCX fell sharply in the prior session as semiconductor equipment stocks sold off broadly, with investors taking profits and questioning whether AI infrastructure spending momentum may cool at the margin. Lam Research (LRCX) Dips More Than Broader Market: What You Should Know

Analyst Upgrades and Downgrades

Several research analysts have weighed in on LRCX shares. Citigroup reiterated a “buy” rating and issued a $450.00 price objective (up from $315.00) on shares of Lam Research in a research note on Wednesday, June 17th. BNP Paribas Exane boosted their price target on shares of Lam Research from $250.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday, April 23rd. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Royal Bank Of Canada increased their price objective on Lam Research from $290.00 to $310.00 and gave the stock an “outperform” rating in a report on Thursday, April 23rd. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $347.75.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The stock has a market capitalization of $416.63 billion, a price-to-earnings ratio of 62.86, a PEG ratio of 1.94 and a beta of 1.80. The stock’s 50 day simple moving average is $330.82 and its 200-day simple moving average is $261.73.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.36 by $0.11. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. Lam Research’s quarterly revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, analysts expect that Lam Research Corporation will post 5.68 EPS for the current fiscal year.

Lam Research Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research’s dividend payout ratio is presently 19.62%.

Insider Buying and Selling at Lam Research

In other news, insider Ava Harter sold 6,010 shares of the stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the transaction, the insider owned 53,205 shares of the company’s stock, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares in the company, valued at $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 86,339 shares of company stock worth $27,680,267 over the last three months. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Legacy Wealth Management LLC MS raised its position in shares of Lam Research by 65.1% in the second quarter. Legacy Wealth Management LLC MS now owns 3,104 shares of the semiconductor company’s stock valued at $1,345,000 after purchasing an additional 1,224 shares during the period. Valeo Financial Advisors LLC boosted its holdings in shares of Lam Research by 1.7% during the 2nd quarter. Valeo Financial Advisors LLC now owns 10,357 shares of the semiconductor company’s stock worth $4,488,000 after buying an additional 172 shares during the period. Gradient Investments LLC grew its stake in Lam Research by 4.4% in the 2nd quarter. Gradient Investments LLC now owns 150,167 shares of the semiconductor company’s stock valued at $65,072,000 after buying an additional 6,371 shares during the last quarter. Rockland Trust Co. grew its stake in Lam Research by 3.6% in the 2nd quarter. Rockland Trust Co. now owns 3,469 shares of the semiconductor company’s stock valued at $1,503,000 after buying an additional 120 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. raised its holdings in Lam Research by 50.4% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 2,902 shares of the semiconductor company’s stock worth $1,257,000 after acquiring an additional 973 shares during the period. Institutional investors and hedge funds 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.