Lam Research (NASDAQ:LRCX) Shares Gap Down on Analyst Downgrade

Shares of Lam Research Corporation (NASDAQ:LRCX) gapped down prior to trading on Thursday after Mizuho lowered their price target on the stock from $365.00 to $360.00. The stock had previously closed at $260.81, but opened at $234.50. Mizuho currently has an outperform rating on the stock. Lam Research shares last traded at $239.0890, with a volume of 4,394,313 shares changing hands.

Several other equities analysts also recently commented on LRCX. Berenberg Bank set a $420.00 target price on Lam Research in a research report on Wednesday, September 9th. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Citigroup reiterated a “buy” rating on shares of Lam Research in a research report on Thursday. Weiss Ratings lowered Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 4th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $375.00 price objective on shares of Lam Research in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $360.20.

Insiders Place Their Bets

In other 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 value of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares in the company, valued at approximately $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.31% of the company’s stock.

Lam Research News Summary

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

• Positive Sentiment: Lam Research reported fiscal Q1 revenue of $8.22 billion, up 54.4% year over year and ahead of the $8.14 billion consensus estimate. Adjusted EPS of $2.20 also exceeded expectations, while operating margin reached a company-record 40%. Lam Research financial results
• Positive Sentiment: Management continues to see strong AI-infrastructure and memory-chip demand. It expects systems revenue to grow about 40% in 2026, customer-support revenue to increase more than 30% annually, and cumulative Aether dry-resist revenue to reach approximately $2.5 billion. Lam Research long-term investor takeaways
• Positive Sentiment: Cantor Fitzgerald retained Lam Research as a “top pick” with a $500 price target, citing an estimated $200 billion long-term market opportunity for semiconductor manufacturing equipment. Other analysts also continue to rate the shares Buy or Outperform.
• Neutral Sentiment: Lam guided to approximately $8.6 billion in fiscal Q2 revenue, roughly in line with consensus. However, investors had expected a stronger outlook following the quarter’s exceptional results, leaving little room for disappointment.
• Negative Sentiment: Supply-chain bottlenecks are delaying equipment shipments and limiting near-term revenue. Analysts characterized the guidance as below unofficial “whisper” expectations, prompting several price-target reductions, including Morgan Stanley’s cut to $339 and Needham’s reduction to $290. Lam Research guidance and analyst reaction
• Negative Sentiment: China’s contribution to revenue is expected to decline substantially from 35% in September, adding concern about regional demand and the sustainability of growth.
• Negative Sentiment: Broader semiconductor stocks are also weakening as investors revisit concerns about elevated AI-related capital spending and whether future returns will justify current valuations.

Institutional Investors Weigh In On Lam Research

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ledyard National Bank increased its holdings in shares of Lam Research by 9.7% in the third quarter. Ledyard National Bank now owns 828 shares of the semiconductor company’s stock valued at $272,000 after purchasing an additional 73 shares in the last quarter. Root Financial Partners LLC lifted its holdings in Lam Research by 7.6% during the 3rd quarter. Root Financial Partners LLC now owns 7,537 shares of the semiconductor company’s stock worth $2,476,000 after buying an additional 534 shares in the last quarter. Precedent Wealth Partners LLC lifted its holdings in Lam Research by 1.2% during the 3rd quarter. Precedent Wealth Partners LLC now owns 34,501 shares of the semiconductor company’s stock worth $11,334,000 after buying an additional 399 shares in the last quarter. E. Ohman J or Asset Management AB lifted its holdings in Lam Research by 2.2% during the 3rd quarter. E. Ohman J or Asset Management AB now owns 58,601 shares of the semiconductor company’s stock worth $19,251,000 after buying an additional 1,250 shares in the last quarter. Finally, Pinnacle Bancorp Inc. bought a new position in Lam Research in the 3rd quarter valued at $141,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Price Performance

The stock has a market capitalization of $299.07 billion, a P/E ratio of 41.57, a price-to-earnings-growth ratio of 0.96 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The stock has a 50-day simple moving average of $306.08 and a 200 day simple moving average of $309.80.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02. The company had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%. The business’s revenue for the quarter was up 54.4% on a year-over-year basis. During the same period last year, the firm earned $1.26 EPS. On average, equities analysts forecast that Lam Research Corporation will post 9.35 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were given a $0.33 dividend. The ex-dividend date was 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 0.6%. Lam Research’s dividend payout ratio is 22.92%.

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.