Lam Research (NASDAQ:LRCX) Shares Down 2.1% - Here's What Happened

Key Points

• Lam Research shares fell 2.1% on Thursday, trading as low as $324.71 before last changing hands at $336.41, below the prior close of $343.71.
• Despite the stock dip, analyst sentiment remains broadly positive: multiple firms recently raised price targets, and MarketBeat shows a Moderate Buy consensus with 27 Buy ratings and 7 Hold ratings.
• The company’s recent fundamentals were strong, with Q4 earnings of $1.47 per share beating estimates and revenue of $5.84 billion topping expectations; Lam also announced a quarterly dividend of $0.26 per share and continues to support shareholder returns through buybacks.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price was down 2.1% during trading on Thursday . The stock traded as low as $324.71 and last traded at $336.41. Approximately 8,171,001 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 10,752,909 shares. The stock had previously closed at $343.71.

Key Lam Research News

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

• Positive Sentiment: Analyst and hedge fund commentary remains constructive on Lam Research, citing strong demand trends in AI-related chip manufacturing and upside potential that could support further gains. What Do Analysts Say About Lam Research (LRCX)’s Earnings Outlook?
• Positive Sentiment: Lam Research’s strong cash flow is supporting share buybacks, with about $4.3 billion still authorized, which can be a favorable signal for shareholder returns as AI-driven revenues and margins improve. Will Strong Cash Flows Support Lam Research's Buyback Strategy Ahead?
• Positive Sentiment: Coverage describing Lam as a top long-term and wide-moat semiconductor stock is reinforcing the bullish narrative around durable earnings power and market-share resilience. Top Wide-Moat Stocks to Buy for Steady Long-Term Returns

Analyst Ratings Changes

LRCX has been the topic of a number of research analyst reports. Stifel Nicolaus raised their price objective on shares of Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. boosted their target price on shares of Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a research report on Thursday, April 23rd. B. Riley Financial boosted their target price on shares of Lam Research from $350.00 to $375.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Needham & Company LLC restated a "buy" rating and set a $300.00 target price on shares of Lam Research in a research report on Thursday, April 23rd. Finally, New Street Research boosted their target price on shares of Lam Research from $235.00 to $280.00 and gave the stock a "neutral" rating in a research report on Monday, April 27th. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $303.30.

Lam Research Stock Down 2.1%

The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The firm's 50-day moving average is $269.87 and its 200 day moving average is $224.85. The firm has a market capitalization of $420.70 billion, a PE ratio of 63.47, a price-to-earnings-growth ratio of 2.77 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) 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 business had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same period in the prior year, the business earned $1.04 earnings per share. The business's revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, research analysts forecast that Lam Research Corporation will post 5.67 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

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

Insider Transactions at Lam Research

In other Lam Research news, insider Ava Harter sold 6,010 shares of the company's stock in a transaction dated 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 transaction, the insider directly owned 53,205 shares in the company, valued at approximately $13,762,005.30. This represents a 10.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Neil J. Fernandes sold 18,170 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the completion of the transaction, the senior vice president owned 66,129 shares in the company, valued at approximately $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 31,839 shares of company stock worth $8,561,667. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LRCX. Brighton Jones LLC lifted its holdings in Lam Research by 1,032.4% in the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company's stock valued at $1,025,000 after purchasing an additional 12,936 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of Lam Research during the 1st quarter valued at about $239,000. Gabelli Funds LLC acquired a new position in shares of Lam Research during the 2nd quarter valued at about $253,000. NewEdge Advisors LLC increased its stake in shares of Lam Research by 2.7% during the 2nd quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company's stock valued at $9,785,000 after acquiring an additional 2,661 shares during the last quarter. Finally, Osterweis Capital Management Inc. increased its stake in shares of Lam Research by 5,206.7% during the 2nd quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company's stock valued at $77,000 after acquiring an additional 781 shares during the last quarter. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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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