Lam Research (NASDAQ:LRCX) Shares Down 1.8% - Here's What Happened

Key Points

• Shares down 1.8% — Lam Research fell to $258.37 on Tuesday (intraday low $256.71) with ~7.78M shares traded, a 31% decline versus its average daily volume.
• Analyst sentiment remains positive — 27 analysts rate the stock Buy and eight Hold, with an average price target of $247.26; several firms recently raised targets (Needham to $300, RBC to $290).
• Earnings beat and raised guidance — Lam reported $1.27 EPS vs. $1.17 expected and $5.34B revenue (+22.1% YoY), and set Q3 2026 guidance of $1.25–$1.45 EPS.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price was down 1.8% during trading on Tuesday . The stock traded as low as $256.71 and last traded at $258.37. Approximately 7,777,572 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 11,318,113 shares. The stock had previously closed at $263.16.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. The Goldman Sachs Group set a $262.00 price target on shares of Lam Research and gave the company a "buy" rating in a report on Thursday, January 29th. Royal Bank Of Canada reissued an "outperform" rating and issued a $290.00 price objective (up from $260.00) on shares of Lam Research in a research note on Thursday, January 29th. Sanford C. Bernstein raised their price objective on shares of Lam Research from $275.00 to $285.00 and gave the company an "outperform" rating in a research report on Monday, February 9th. New Street Research lifted their target price on shares of Lam Research from $140.00 to $235.00 and gave the company a "neutral" rating in a research note on Tuesday, March 31st. Finally, Needham & Company LLC upped their target price on shares of Lam Research from $250.00 to $300.00 and gave the stock a "buy" rating in a report on Thursday, January 29th. 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 presently has an average rating of "Moderate Buy" and an average price target of $247.26.

Lam Research Trading Down 1.8%

The firm has a market cap of $322.64 billion, a P/E ratio of 52.94, a P/E/G ratio of 2.85 and a beta of 1.78. The stock has a 50 day simple moving average of $232.56 and a 200-day simple moving average of $195.31. The company has a current ratio of 2.26, a quick ratio of 1.61 and a debt-to-equity ratio of 0.37.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.10. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The firm had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the prior year, the company earned $0.91 EPS. The company's quarterly revenue was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, equities research analysts expect that Lam Research Corporation will post 5.3 EPS for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Transactions at Lam Research

In other news, Director Eric Brandt sold 35,000 shares of the company's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $225.60, for a total transaction of $7,896,000.00. Following the sale, the director directly owned 253,705 shares in the company, valued at approximately $57,235,848. This represents a 12.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ava Harter sold 1,500 shares of the stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $222.66, for a total transaction of $333,990.00. Following the completion of the transaction, the insider directly owned 53,205 shares of the company's stock, valued at approximately $11,846,625.30. The trade was a 2.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 130,886 shares of company stock worth $29,658,802 in the last three months. Insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

Several large investors have recently modified their holdings of LRCX. Norges Bank bought a new position in Lam Research during the fourth quarter valued at $3,645,427,000. Price T Rowe Associates Inc. MD raised its position in Lam Research by 352.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock worth $2,344,347,000 after purchasing an additional 10,666,540 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Lam Research by 781.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company's stock worth $1,518,542,000 after purchasing an additional 10,053,978 shares during the period. Franklin Resources Inc. lifted its stake in Lam Research by 57.0% in the fourth quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company's stock worth $1,730,724,000 after purchasing an additional 3,671,073 shares during the last quarter. Finally, Corient Private Wealth LLC lifted its stake in Lam Research by 235.5% in the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company's stock worth $890,040,000 after purchasing an additional 3,649,553 shares during the last quarter. Institutional investors own 84.61% of the company's stock.

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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