Lam Research (NASDAQ:LRCX) Stock Price Down 3.4% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX) fell 3.4% on Tuesday. The company traded as low as $330.85 and last traded at $333.89. Approximately 7,629,486 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 10,758,769 shares. The stock had previously closed at $345.80.

More Lam Research News

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

• Positive Sentiment: Lam Research is benefiting from sustained demand for semiconductor-manufacturing equipment used in advanced packaging, high-bandwidth memory and AI chips. Its equipment supports the production of chips on silicon wafers, providing exposure to continued AI infrastructure investment. Is Lam Research a Smart AI Stock Pick for Long-Term Investors?
• Positive Sentiment: Recent earnings momentum remains strong: Lam reported quarterly revenue of $6.72 billion and adjusted earnings of $1.82 per share, exceeding analyst expectations, while revenue increased 30% year over year. Management’s next-quarter earnings guidance of $2.00–$2.30 per share also supports the growth outlook.
• Positive Sentiment: Zacks identified Lam Research as one of four chip stocks with dependable earnings performance and highlighted its improving margins and exposure to AI-related semiconductor demand. Top Chip Stocks to Ride the AI Boom
• Neutral Sentiment: Lam is attracting unusually high investor attention, but the “trending stock” coverage does not represent a new corporate announcement or a change in fundamentals. Lam Research Is a Trending Stock
• Negative Sentiment: Valuation is the key near-term risk. Lam has risen about 73% this year and trades at roughly 55.6 times earnings, with a higher price-to-free-cash-flow valuation than KLA despite similar forward earnings multiples. Investors may be taking profits or demanding stronger results to justify the premium. Lam Research vs. KLA
• Negative Sentiment: Lam Research was also indicated modestly lower in premarket European trading, consistent with cautious sentiment toward a richly valued semiconductor-equipment stock.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on LRCX. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the company a “buy” rating in a research report on Thursday, July 30th. Mizuho cut their price target on shares of Lam Research from $370.00 to $365.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. Needham & Company LLC reissued a “buy” rating and set a $390.00 price target on shares of Lam Research in a research report on Thursday, July 30th. Finally, B. Riley Financial raised their price target on Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a research note on Thursday, October 1st. One 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $364.59.

Lam Research Stock Down 3.7%

The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The firm’s 50 day moving average price is $310.02 and its two-hundred day moving average price is $305.12. The company has a market capitalization of $397.16 billion, a price-to-earnings ratio of 55.05, a price-to-earnings-growth ratio of 1.32 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.69 by $0.13. The firm had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s quarterly revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Sell-side analysts anticipate that Lam Research Corporation will post 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend

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

Insider Buying and Selling

In related news, 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 completion of the sale, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total value of $1,512,300.00. Following 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 32,839 shares of company stock valued at $10,644,740. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of large investors have recently added to or reduced their stakes in the stock. Paladin Partners LLC bought a new position in Lam Research in the 2nd quarter valued at about $26,000. Quintet Private Bank Europe S.A. increased its stake in 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 acquiring an additional 50 shares during the last quarter. Bravera Wealth acquired a new position in Lam Research during the second quarter valued at approximately $46,000. Cedar Mountain Advisors LLC raised its position in 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. Finally, Comprehensive Financial Planning Inc. PA bought a new stake in Lam Research during the second quarter worth $52,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research Company Profile

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.