Lam Research (NASDAQ:LRCX) Shares Down 4.3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) shares dropped 4.3% during mid-day trading on Thursday . The stock traded as low as $315.16 and last traded at $320.96. 10,304,937 shares changed hands during trading, a decline of 9% from the average session volume of 11,355,858 shares. The stock had previously closed at $335.43.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. BNP Paribas Exane raised their price target on shares of Lam Research from $250.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday, April 23rd. 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. Cantor Fitzgerald set a $500.00 target price on shares of Lam Research and gave the stock an “overweight” rating in a research report on Monday, June 29th. Sanford C. Bernstein boosted their target price on shares of Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. Finally, Barclays reissued an “overweight” rating and set a $335.00 price target (up from $275.00) on shares of Lam Research in a report on Thursday, June 11th. 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, Lam Research has a consensus rating of “Moderate Buy” and an average price target of $358.67.

Lam Research Stock Performance

The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The company has a market cap of $391.80 billion, a PE ratio of 59.11, a P/E/G ratio of 1.90 and a beta of 1.80. The business’s fifty day moving average is $339.57 and its 200-day moving average is $268.94.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating 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 company had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. During the same period in the previous year, the business posted $1.04 earnings per share. The firm’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. As a group, research analysts predict that Lam Research Corporation will post 5.68 EPS for the current fiscal year.

Lam Research Announces Dividend

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

Insider Buying and Selling

In related news, insider Ava Harter sold 6,010 shares of the firm’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $258.66, for a total value of $1,554,546.60. Following the transaction, the insider directly 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 104,621 shares of company stock valued at $33,804,737 in the last 90 days. 0.31% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lam Research

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Intergy Private Wealth LLC bought a new stake in Lam Research during the 2nd quarter worth approximately $390,000. Diversified Trust Co. boosted its position in shares of Lam Research by 4.6% in the second quarter. Diversified Trust Co. now owns 37,268 shares of the semiconductor company’s stock worth $16,150,000 after purchasing an additional 1,638 shares during the period. Cary Street Partners Financial LLC boosted its position in shares of Lam Research by 1.3% in the second quarter. Cary Street Partners Financial LLC now owns 21,689 shares of the semiconductor company’s stock worth $9,398,000 after purchasing an additional 269 shares during the period. SLT Holdings LLC purchased a new stake in shares of Lam Research in the second quarter worth $300,000. Finally, Vaquero Private Wealth Ltd. bought a new stake in shares of Lam Research during the 2nd quarter valued at $217,000. 84.61% of the stock is 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.