Lam Research (NASDAQ:LRCX) Stock Rating Lowered by Zacks Research

Lam Research (NASDAQ:LRCX) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday, Zacks reports.

LRCX has been the topic of a number of other reports. Fundamental Research set a $390.00 price objective on Lam Research in a research note on Thursday, October 1st. Weiss Ratings cut Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Susquehanna reissued a “positive” rating and set a $475.00 target price (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. Needham & Company LLC lowered their price target on shares of Lam Research from $390.00 to $290.00 and set a “buy” rating for the company in a report on Thursday. Finally, Jefferies Financial Group set a $335.00 price target on shares of Lam Research and gave the stock a “buy” rating in a report on Thursday, July 30th. Twenty-six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $354.55.

Lam Research Trading Down 0.0%

LRCX opened at $230.10 on Thursday. Lam Research has a fifty-two week low of $135.50 and a fifty-two week high of $438.50. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.91. The firm has a market capitalization of $287.95 billion, a price-to-earnings ratio of 34.29, a PEG ratio of 0.83 and a beta of 1.85. The company’s 50 day moving average price is $301.90 and its two-hundred day moving average price is $309.32.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same period in the prior year, the company posted $1.26 EPS. The company’s revenue was up 54.4% on a year-over-year basis. As a group, research analysts predict that Lam Research will post 9.48 earnings per share for the current year.

Insider Buying and Selling

In other 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 transaction of $1,512,300.00. Following 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 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 transaction, the director owned 20,995 shares in the company, valued at approximately $6,607,966.30. This represents 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

A number of institutional investors and hedge funds have recently made changes to their positions in LRCX. Paladin Partners LLC bought a new stake in Lam Research during the second quarter worth $26,000. Dakota Community Bank & Trust NA bought a new stake in shares of Lam Research in the 3rd quarter worth $33,000. Quintet Private Bank Europe S.A. raised its holdings in shares of Lam Research by 100.0% in the third quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 50 shares during the last quarter. Bravera Wealth bought a new position in shares of Lam Research during the second quarter valued at about $46,000. Finally, Cedar Mountain Advisors LLC lifted its position in shares of Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 85 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research News Roundup

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

About Lam Research

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.