Lam Research (NASDAQ:LRCX) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Lam Research from “buy” to “hold,” even as broader analyst sentiment remains constructive.
• The stock has rallied sharply and was trading near its 52-week high at $294.05, up 2.6% in the session, with analysts’ consensus still at Moderate Buy and a target price of $285.94.
• Lam Research recently beat quarterly expectations, reporting $1.47 EPS on $5.84 billion in revenue, while insiders sold shares and institutional ownership remained high at 84.61%.

Lam Research (NASDAQ:LRCX - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

A number of other brokerages have also issued reports on LRCX. JPMorgan Chase & Co. raised their price target on Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a research note on Thursday, April 23rd. Citic Securities increased their target price on Lam Research from $165.00 to $275.00 and gave the stock a "buy" rating in a research note on Friday, January 30th. KeyCorp reiterated a "sector weight" rating on shares of Lam Research in a research report on Thursday, January 29th. Oppenheimer restated an "outperform" rating and issued a $330.00 price target on shares of Lam Research in a report on Thursday, April 23rd. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Twenty-six investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $285.94.

Lam Research Trading Up 2.6%

LRCX stock opened at $294.05 on Friday. Lam Research has a twelve month low of $74.65 and a twelve month high of $297.99. The stock has a market capitalization of $367.73 billion, a price-to-earnings ratio of 55.48, a price-to-earnings-growth ratio of 2.43 and a beta of 1.81. 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 firm's fifty day simple moving average is $238.93 and its two-hundred day simple moving average is $204.97.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $5.70 billion. During the same period in the previous year, the company earned $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. As a group, analysts anticipate that Lam Research will post 5.67 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Ava Harter sold 6,010 shares of the company's stock in a transaction that occurred 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 sale, the insider owned 53,205 shares in the company, valued at $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Douglas R. Bettinger sold 50,057 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the completion of the sale, the chief financial officer directly owned 1,081,705 shares in the company, valued at $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 120,066 shares of company stock worth $27,953,242 in the last three months. Corporate insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently bought and sold shares of LRCX. Valued Wealth Advisors LLC grew its position in 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 period. Greenup Street Wealth Management LLC increased its stake in shares of Lam Research by 1.8% in the 1st quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company's stock worth $520,000 after acquiring an additional 44 shares during the last quarter. Triumph Capital Management raised its position in shares of Lam Research by 22.5% during 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 period. Traphagen Investment Advisors LLC lifted its stake in shares of Lam Research by 2.4% in the 4th quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company's stock valued at $336,000 after purchasing an additional 46 shares during the last quarter. Finally, Sachetta LLC lifted its position in Lam Research by 13.3% in the first quarter. Sachetta LLC now owns 393 shares of the semiconductor company's stock valued at $84,000 after buying an additional 46 shares during the last quarter. 84.61% of the stock is owned by institutional investors and hedge funds.

More Lam Research News

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

• Positive Sentiment: B. Riley raised its price target on Lam Research to $350 from $330 and kept a Buy rating, citing strong earnings and solid execution. Why Analysts Are Growing More Confident In Lam Research (LRCX)
• Positive Sentiment: Erste Group Bank lifted FY2027 EPS estimates for Lam Research to $7.88 from $7.74, suggesting analysts see better long-term earnings power. Lam Research stock page
• Positive Sentiment: Recent coverage highlights Lam Research as an AI-fab beneficiary with orders beating expectations, supporting the case for further upside after a sharp rally. Lam Research (LRCX) Is Up 19.5% After AI-Fab Orders Beat Expectations Has The Bull Case Changed?
• Neutral Sentiment: Some commentary notes the stock has already surged dramatically over the past year, which may raise overbought concerns even as Wall Street remains constructive. Lam Research Has Surged 300% in a Year. Wall Street Sees More Gains Still Ahead
• Neutral Sentiment: Investor articles argue the rally may still have room to run, but that view is speculative rather than a direct fundamental update. Why Lam Research Still Looks Like a Buy After a 300% Rally

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.

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