Lam Research (NASDAQ:LRCX) Shares Down 1.6% - Here's Why

Key Points

• Lam Research shares fell 1.6% in Wednesday trading, closing at $321.80 after hitting an intraday low of $318.95. Trading volume was notably higher than average, with about 14.0 million shares changing hands.
• Analyst sentiment remains constructive despite the pullback. Barclays raised its price target to $335 from $275, and the stock now carries a consensus rating of “Moderate Buy” with an average target price of $322.01.
• Fundamentals and sector tailwinds remain strong: Lam recently beat quarterly EPS and revenue estimates, and AI-driven demand has helped lift semiconductor equipment stocks broadly. However, some investors are concerned the semiconductor cycle may be nearing a peak, which could add near-term volatility.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 1.6% during trading on Wednesday . The company traded as low as $318.95 and last traded at $321.80. Approximately 14,027,789 shares traded hands during mid-day trading, an increase of 29% from the average daily volume of 10,846,966 shares. The stock had previously closed at $327.16.

Lam Research News Roundup

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

• Positive Sentiment: Barclays raised its price target on Lam Research to $335 from $275, keeping an equal weight rating. The firm also lifted wafer fabrication equipment estimates, which supports the view that demand for chip-making tools remains healthy. Article: Barclays adjusts Lam Research price target to 335 from 275
• Positive Sentiment: Lam Research was also included among “top unstoppable growth stocks,” reinforcing investor interest in the name as a high-growth semiconductor play. Article: Lam Research Corporation among the top unstoppable growth stocks
• Positive Sentiment: Semiconductor equipment stocks have been trading at record highs amid continued AI-driven demand for chip gear, a sector tailwind that is helping lift Lam Research and peers like Applied Materials and KLA. Article: Applied Materials, Other Chip Gear Stocks At Record Highs
• Neutral Sentiment: Recent commentary on the semiconductor sector suggests the group may be due for a correction after a strong run, which could create near-term volatility for Lam Research even if the longer-term outlook remains constructive. Article: Semiconductor Index Outlook: Upside Target Reached, Correction Underway
• Negative Sentiment: Some investors are also debating whether the semiconductor cycle is nearing a peak, which could temper enthusiasm if chip-equipment demand slows later this year. Article: Lam Research: The Etch Monopoly Printing Record Margins While The Street Debates Peak Cycle

Wall Street Analyst Weigh In

LRCX has been the topic of several recent research reports. Jefferies Financial Group upped their price objective on Lam Research from $285.00 to $315.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Stifel Nicolaus upped their price objective on Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Mizuho set a $380.00 price objective on Lam Research and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Erste Group Bank cut Lam Research from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Finally, Citigroup reaffirmed a "buy" rating and set a $315.00 price objective (up from $300.00) on shares of Lam Research in a report on Thursday, April 23rd. Twenty-seven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, Lam Research presently has an average rating of "Moderate Buy" and an average target price of $322.01.

Lam Research Stock Down 1.6%

The company has a fifty day moving average of $277.79 and a two-hundred day moving average of $229.81. The company has a market cap of $402.43 billion, a PE ratio of 60.72, a price-to-earnings-growth ratio of 2.69 and a beta of 1.85. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share 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 for the quarter, compared to analyst estimates of $5.70 billion. During the same quarter in the prior year, the firm posted $1.04 EPS. Lam Research'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, analysts anticipate that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Wednesday, June 17th. Lam Research's dividend payout ratio is 19.62%.

Insider Buying and Selling at Lam Research

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of the company's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the transaction, the senior vice president owned 66,129 shares of the company's stock, valued at $16,872,153.06. This represents a 21.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $1,554,546.60. Following the completion of the transaction, the insider directly owned 53,205 shares in the company, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 31,839 shares of company stock worth $8,561,667 in the last ninety days. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

A number of hedge funds have recently made changes to their positions in the stock. GSG Advisors LLC lifted its stake in shares of Lam Research by 3.1% during the 1st 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. Valued Wealth Advisors LLC lifted its stake in shares of Lam Research by 7.9% during the 1st quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company's stock worth $126,000 after purchasing an additional 43 shares during the last quarter. Greenup Street Wealth Management LLC lifted its stake in shares of Lam Research by 1.8% during the 1st quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company's stock worth $520,000 after purchasing an additional 44 shares during the last quarter. Triumph Capital Management lifted its stake 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 worth $42,000 after purchasing an additional 45 shares during the last quarter. Finally, Traphagen Investment Advisors LLC raised its stake in Lam Research by 2.4% in the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company's stock valued at $336,000 after buying an additional 46 shares during the last quarter. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.