Lam Research (NASDAQ:LRCX) Shares Down 9.3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s stock price was down 9.3% during trading on Tuesday . The company traded as low as $365.26 and last traded at $371.33. Approximately 15,741,646 shares traded hands during trading, an increase of 43% from the average session volume of 11,031,287 shares. The stock had previously closed at $409.54.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Bank of America raised its price target on Lam Research to $480 and reiterated a Buy rating, adding to a cluster of bullish analyst calls that suggest more upside if NAND and AI equipment demand stays strong. Benzinga article
• Positive Sentiment: Citi’s new $450 price target highlights expectations for stronger NAND equipment demand and supports the view that Lam Research can continue benefiting from the AI and memory investment cycle. Barchart article
• Neutral Sentiment: Recent reports highlight Lam Research’s strong fundamentals, including revenue growth, earnings beats, and upbeat AI-related commentary, which helps explain why analysts remain constructive even after a big run. Yahoo Finance article
• Negative Sentiment: Lam Research is being hit by a broad semiconductor selloff, with investors taking profits and reducing exposure to high-valuation AI and memory names, pressuring the stock despite company-specific strength. Quiver Quant article

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. The Goldman Sachs Group restated a “buy” rating and issued a $290.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. UBS Group reissued a “buy” rating and issued a $375.00 target price (up from $310.00) on shares of Lam Research in a report on Tuesday, June 9th. Berenberg Bank upped their target price on shares of Lam Research from $265.00 to $335.00 and gave the stock a “buy” rating in a research report on Thursday, April 23rd. Wells Fargo & Company reiterated an “overweight” rating and issued a $450.00 price target (up from $365.00) on shares of Lam Research in a report on Monday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Twenty-eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $334.43.

Lam Research Trading Down 9.3%

The firm has a market cap of $464.37 billion, a P/E ratio of 70.06, a P/E/G ratio of 3.21 and a beta of 1.85. The stock has a 50 day simple moving average of $304.76 and a 200-day simple moving average of $243.95. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. During the same period in the prior year, the company earned $1.04 EPS. The company’s quarterly 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. On average, equities research analysts expect that Lam Research Corporation will post 5.7 EPS for the current fiscal year.

Lam Research Announces Dividend

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

Insiders Place Their Bets

In related news, insider Ava Harter sold 6,010 shares of the stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the transaction, the insider owned 53,205 shares of the company’s stock, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction dated Thursday, June 11th. The stock was 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 owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. 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 sold 86,339 shares of company stock valued at $27,680,267 in the last three months. Corporate insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of Lam Research in the 4th quarter worth approximately $3,645,427,000. Price T Rowe Associates Inc. MD raised its holdings in Lam Research by 352.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock valued at $2,344,347,000 after buying an additional 10,666,540 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in Lam Research by 781.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company’s stock worth $1,518,542,000 after buying an additional 10,053,978 shares during the last quarter. Franklin Resources Inc. lifted its position in Lam Research by 57.0% in the fourth quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company’s stock worth $1,730,724,000 after buying an additional 3,671,073 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its stake in Lam Research by 235.5% during the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company’s stock worth $890,040,000 after buying an additional 3,649,553 shares during the period. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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.