Lam Research (NASDAQ:LRCX) Shares Down 1.6% - Should You Sell?

Key Points

• Shares slipped 1.6% intraday to $260.96 (low $259.18) on Thursday with ~7.79M shares traded, about 32% below its average daily volume.
• Earnings beat and guidance: Lam reported Q2 EPS of $1.27 vs. $1.17 expected and revenue of $5.34B (up 22.1% YoY), and set Q3 EPS guidance of $1.25–$1.45; sell-side consensus expects ~3.71 EPS for the fiscal year.
• Market sentiment is mixed — analysts have largely raised ratings/targets (consensus "Moderate Buy") and AI/memory capex tailwinds support demand, but near-term risks include sector spillovers from ASML commentary, export-control/geopolitical concerns, and notable insider selling and institutional rebalancing.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price was down 1.6% during mid-day trading on Thursday . The stock traded as low as $259.18 and last traded at $260.96. Approximately 7,790,858 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 11,480,271 shares. The stock had previously closed at $265.16.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam has a strong beat history and recent revenue/earnings strength (Q2 revenue up ~22%, recent EPS beats), supporting expectations for another upside surprise at the upcoming report. Will Lam Research (LRCX) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Analyst upgrades and higher price targets (recent Stifel/other coverage) have boosted sentiment and provided support to the stock’s rally over the past month. Lam Research Trading Higher After Analyst Upgrade
• Positive Sentiment: Market conviction around AI-driven capex and memory cycles is lifting demand expectations for wafer-fab equipment — social and analyst chatter points to sustained tailwinds for Lam. Lam Research Stock Opinions on AI Semiconductor Boom
• Neutral Sentiment: Elon Musk’s Terafab push signals rising in-house chip activity across the industry — could eventually change competitive dynamics for tool demand, but implications for Lam are indirect and long-term. Musk Pushes Deeper Into Chip Manufacturing With Terafab
• Neutral Sentiment: Broader tech-earnings narratives emphasize which cash-generative names can sustain spending — this framing helps highlight Lam’s strengths but doesn’t change near-term results. Tech Earnings Are Here. Whatever Happens, These 4 Stocks Should Thrive
• Negative Sentiment: Sector pullback after ASML’s quarterly update and commentary on softer near-term margins and export-control risk spilled over to U.S. equipment makers, pressuring LRCX ahead of earnings. Traders are de-risking around geopolitical/export concerns that affect China-related demand. Lam Research falls 3.4% as chip-equipment stocks retreat after ASML update
• Negative Sentiment: Heavy insider selling and large institutional rebalancing (notably big portfolio cuts by some managers) are additional near-term overhangs that can amplify volatility into the earnings call. Lam Research falls 3.4% — insider & institutional activity

Analyst Ratings Changes

Several brokerages recently commented on LRCX. Wells Fargo & Company upped their target price on Lam Research from $250.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, January 29th. KeyCorp reiterated a "sector weight" rating on shares of Lam Research in a report on Thursday, January 29th. Erste Group Bank cut Lam Research from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Morgan Stanley upped their target price on Lam Research from $254.00 to $260.00 and gave the company an "equal weight" rating in a report on Monday, April 6th. Finally, Bank of America upped their target price on Lam Research from $195.00 to $245.00 and gave the company a "buy" rating in a report on Tuesday, January 13th. Twenty-seven research 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 stock has a consensus rating of "Moderate Buy" and an average price target of $247.26.

Lam Research Price Performance

The stock has a market capitalization of $325.88 billion, a P/E ratio of 53.48, a PEG ratio of 2.90 and a beta of 1.78. The business has a fifty day simple moving average of $230.19 and a 200-day simple moving average of $192.28. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.61 and a current ratio of 2.26.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.10. The firm had revenue of $5.34 billion for the quarter, compared to analysts' expectations of $5.23 billion. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The company's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.91 EPS. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. Sell-side analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Wednesday, March 4th. Lam Research's dividend payout ratio is presently 21.31%.

Insiders Place Their Bets

In related news, insider Ava Harter sold 4,000 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $232.50, for a total transaction of $930,000.00. Following the transaction, the insider directly owned 54,705 shares of the company's stock, valued at approximately $12,718,912.50. This represents a 6.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Douglas R. Bettinger sold 50,057 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the transaction, the chief financial officer directly owned 1,081,705 shares in the company, valued at approximately $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. In the last three months, insiders have sold 130,886 shares of company stock worth $29,658,802. Corporate insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in shares of Lam Research by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company's stock worth $17,537,447,000 after purchasing an additional 364,949 shares in the last quarter. State Street Corp lifted its holdings in shares of Lam Research by 0.4% in the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company's stock worth $8,024,684,000 after purchasing an additional 265,805 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Lam Research by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company's stock worth $5,764,117,000 after purchasing an additional 126,613 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after purchasing an additional 1,638,406 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Lam Research in the 4th quarter worth $3,645,427,000. 84.61% of the stock is owned by institutional investors and hedge funds.

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.

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