Lam Research (NASDAQ:LRCX) Shares Down 1.3% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s share price traded down 1.3% during trading on Wednesday. The stock traded as low as $321.11 and last traded at $329.51. 6,238,499 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 10,727,210 shares. The stock had previously closed at $333.89.

Key Lam Research News

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

• Positive Sentiment: AI and semiconductor demand support the outlook. Zacks identified Lam Research, alongside NVIDIA, Applied Materials and TSMC, as companies with consistent earnings performance and durable growth exposure to artificial intelligence. Demand for advanced semiconductor manufacturing equipment, advanced packaging and high-bandwidth memory (HBM) remains a key growth driver. 4 Top Chip Stocks With Dependable Earnings to Ride the AI Boom
• Positive Sentiment: Analysts remain constructive on LRCX. Recent analyst and industry commentary highlights Lam Research as a beneficiary of the prospering semiconductor industry, with AI-driven investment expected to sustain equipment demand. Morgan Stanley also reportedly raised its price target for Lam Research, adding to the positive sentiment. TSMC Stock Hits Record High, Morgan Stanley Raises Lam Research Price Target
• Neutral Sentiment: Lam is growing faster than KLA, but investors are paying a premium. A comparison with KLA suggests LRCX has stronger current growth, while its valuation relative to trailing free cash flow is higher. The debate is whether Lam’s faster expansion justifies that premium. Lam Research vs. KLA: Is Faster Growth Worth Paying More for Cash Flow?
• Negative Sentiment: Premium valuation may be weighing on the stock. Zacks noted that LRCX’s high valuation is supported by rising earnings, improving margins and AI exposure, but the elevated price leaves less room for disappointment. The company’s latest reported quarter exceeded EPS and revenue expectations, with revenue up 30% year over year, although investors may already have priced in much of that strength. Should You Invest in Lam Research Stock Despite Its Premium Valuation?
• Neutral Sentiment: One submitted item refers to an abdominoplasty clinical trial while attributing it to Lam Research. This appears unrelated to the semiconductor-equipment company and does not provide a credible investment catalyst. New Abdominoplasty Trial Signals Steady Demand in Procedure-Driven Healthcare

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on LRCX shares. Berenberg Bank set a $420.00 price target on Lam Research in a research report on Wednesday, September 9th. Mizuho cut their price objective on Lam Research from $370.00 to $365.00 and set an “outperform” rating for the company in a report on Tuesday, August 25th. Oppenheimer reissued an “outperform” rating and issued a $400.00 target price (up from $330.00) on shares of Lam Research in a research report on Monday, June 15th. Morgan Stanley reissued an “overweight” rating and issued a $385.00 price objective (up from $367.00) on shares of Lam Research in a research note on Monday. Finally, Bank of America raised their price target on Lam Research from $330.00 to $480.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Lam Research currently has a consensus rating of “Moderate Buy” and a consensus price target of $364.59.

Lam Research Price Performance

The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The stock has a market cap of $412.36 billion, a price-to-earnings ratio of 57.21, a price-to-earnings-growth ratio of 1.37 and a beta of 1.85. The company’s 50-day moving average is $308.48 and its 200-day moving average is $304.45.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The business had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the previous year, the firm earned $1.33 EPS. Lam Research’s quarterly revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities research analysts expect that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date is Wednesday, September 23rd. Lam Research’s dividend payout ratio is 22.92%.

Insider Activity at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction that occurred on 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 owned 42,462 shares in the company, valued at $12,843,056.52. The trade was a 10.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Talwalkar sold 18,282 shares of the business’s stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director owned 87,142 shares of the company’s stock, valued at approximately $29,192,570. The trade was a 17.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 32,839 shares of company stock valued at $10,644,740 over the last quarter. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. World Equity Group Inc. grew its holdings in Lam Research by 0.5% during the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock valued at $2,416,000 after purchasing an additional 29 shares in the last quarter. Tenzing Financial LLC lifted its holdings in Lam Research by 3.5% in the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after buying an additional 34 shares in the last quarter. Advus Financial Partners LLC boosted its position in Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after buying an additional 34 shares during the last quarter. Paragon Private Wealth Management LLC boosted its position in Lam Research by 1.3% in the 2nd quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock valued at $1,178,000 after buying an additional 35 shares during the last quarter. Finally, Gibraltar Capital Management Inc. grew its stake in shares of Lam Research by 3.6% during the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock valued at $455,000 after acquiring an additional 36 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company’s portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.