Lam Research (NASDAQ:LRCX) Shares Down 3.1% on Insider Selling

Lam Research Corporation (NASDAQ:LRCX) traded down 3.1% on Wednesday following insider selling activity. The stock traded as low as $319.79 and last traded at $335.43. 10,239,778 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 11,363,407 shares. The stock had previously closed at $346.10.

Specifically, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares of the company’s stock, valued at $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on LRCX shares. Rothschild & Co Redburn lifted their price objective on Lam Research from $305.00 to $420.00 and gave the company a “buy” rating in a research note on Wednesday, June 17th. Needham & Company LLC raised their target price on shares of Lam Research from $300.00 to $390.00 and gave the company a “buy” rating in a report on Friday, July 10th. B. Riley Financial lifted their price target on shares of Lam Research from $350.00 to $375.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. BNP Paribas Exane boosted their price target on shares of Lam Research from $250.00 to $260.00 and gave the stock a “neutral” rating in a report on Thursday, April 23rd. Finally, Morgan Stanley increased their price objective on shares of Lam Research from $331.00 to $404.00 and gave the company an “overweight” rating in a research report on Monday, July 6th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $358.67.

Key Lam Research News

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

• Positive Sentiment: TD Cowen raised its price target on Lam Research and kept a Buy rating, adding to the recent stream of bullish analyst updates. TD Cowen Raises PT on Lam Research (LRCX), Keeps a Buy
• Positive Sentiment: Mizuho lifted its price target on LRCX to $400 from $380 and reiterated an Outperform rating, saying AI demand should support wafer fab equipment spending for years. Mizuho Raises its Price Target on Lam Research Corporation (LRCX)
• Positive Sentiment: Morgan Stanley highlighted Lam Research as a stock it thinks could outperform into earnings, citing expectations for strong quarterly results. Buy GE Vernova, Lam Research, United Airlines stocks: Morgan Stanley
• Neutral Sentiment: Coverage comparing Lam Research with other AI semiconductor names suggests investors are still weighing valuation versus growth, but the broader AI equipment theme remains intact. ASX vs. LRCX: Which AI Semiconductor Stock is the Better Buy?
• Negative Sentiment: Recent commentary also pointed to cooling AI memory enthusiasm and softer semiconductor sentiment, which could cap upside if capital spending slows. Lam Research (LRCX) Stock Slides As AI Memory Boom Loses Steam
• Negative Sentiment: Director Abhijit Talwalkar sold 18,282 shares in a pre-arranged Rule 10b5-1 transaction, which may slightly weigh on sentiment even though the sale was planned. Lam Research director stock sale

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 company’s 50 day simple moving average is $337.74 and its 200 day simple moving average is $266.51. The company has a market capitalization of $419.48 billion, a PE ratio of 63.29, a price-to-earnings-growth ratio of 1.95 and a beta of 1.80.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The business had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. During the same quarter in the previous year, the firm earned $1.04 EPS. The company’s revenue was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, sell-side analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

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

Institutional Investors Weigh In On Lam Research

Several large investors have recently modified their holdings of LRCX. Brighton Jones LLC lifted its holdings in shares of Lam Research by 1,032.4% during the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock worth $1,025,000 after purchasing an additional 12,936 shares during the period. Caxton Associates LLP acquired a new stake in shares of Lam Research in the 1st quarter worth $239,000. Gabelli Funds LLC purchased a new stake in shares of Lam Research in the second quarter valued at about $253,000. NewEdge Advisors LLC increased its stake in shares of Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock worth $9,785,000 after acquiring an additional 2,661 shares during the period. Finally, Osterweis Capital Management Inc. increased its stake in shares of Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock worth $77,000 after acquiring an additional 781 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

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.