Lam Research (NASDAQ:LRCX) Trading Down 10.2% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX) shares traded down 10.2% on Thursday . The stock traded as low as $342.48 and last traded at $351.41. 18,784,218 shares were traded during trading, an increase of 65% from the average session volume of 11,392,094 shares. The stock had previously closed at $391.26.

Lam Research News Roundup

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

• Positive Sentiment: Wall Street and growth-focused commentary continue to highlight Lam Research’s strong fundamentals, including above-average financial growth and a favorable setup for another earnings beat, which supports the stock’s longer-term bullish case. Article Title
• Positive Sentiment: Analysts and market coverage point to AI infrastructure demand, advanced packaging growth, and margin expansion as key drivers that could keep Lam Research’s rally going and help gross margins move higher. Article Title
• Positive Sentiment: Recent reports also suggest Lam Research’s earnings history remains strong, with the company viewed as having a good chance to beat estimates again in its next quarterly release. Article Title
• Neutral Sentiment: Several articles frame LRCX as a major beneficiary of the AI boom and even speculate about long-term upside potential, reinforcing the market’s optimism without adding a new near-term catalyst. Article Title
• Negative Sentiment: After a huge first-half run, some coverage now questions whether Lam Research’s stock is being driven more by AI enthusiasm than by fundamentals, raising valuation and cyclical-peak concerns that could pressure the shares. Article Title
• Negative Sentiment: One Zacks note explicitly said Lam Research fell more than the broader market in the latest session, underscoring that some profit-taking is hitting the name after its strong climb. Article Title

Analysts Set New Price Targets

A number of analysts have commented on the stock. Jefferies Financial Group upped their price target on shares of Lam Research from $285.00 to $315.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Susquehanna reissued a “positive” rating and issued a $475.00 price objective (up from $385.00) on shares of Lam Research in a research note on Tuesday. JPMorgan Chase & Co. upped their target price on Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. Oppenheimer reaffirmed an “outperform” rating and set a $400.00 target price (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. Finally, Stifel Nicolaus set a $500.00 target price on Lam Research in a report on Monday. Twenty-eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and an average price target of $345.39.

Lam Research Stock Down 10.2%

The stock has a market cap of $439.46 billion, a price-to-earnings ratio of 66.30, a price-to-earnings-growth ratio of 3.58 and a beta of 1.79. The firm’s fifty day moving average price is $322.77 and its two-hundred day moving average price is $255.36. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. During the same period last year, the business posted $1.04 EPS. The firm’s revenue for the quarter 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. Sell-side analysts forecast that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Buying and Selling

In other Lam Research news, insider Ava Harter sold 6,010 shares of the company’s stock in a transaction on Monday, April 27th. The shares were 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 in the company, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction 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. This trade represents 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 in the last ninety days. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several large investors have recently added to or reduced their stakes in LRCX. GSG Advisors LLC raised its stake in shares of Lam Research by 3.1% in the first quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock worth $296,000 after purchasing an additional 42 shares during the last quarter. First County Bank CT boosted its position in shares of Lam Research by 1.7% during the second quarter. First County Bank CT now owns 2,483 shares of the semiconductor company’s stock valued at $1,076,000 after buying an additional 42 shares during the last quarter. Valued Wealth Advisors LLC boosted its position in shares of Lam Research by 7.9% during the first quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company’s stock valued at $126,000 after buying an additional 43 shares during the last quarter. Greenup Street Wealth Management LLC grew its holdings in Lam Research by 1.8% during the first quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company’s stock worth $520,000 after buying an additional 44 shares in the last quarter. Finally, Triumph Capital Management raised its position in Lam Research by 22.5% in the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after buying an additional 45 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

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.