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

Key Points

• Lam Research shares fell 2.1% in mid-day trading, closing around $306.76 after trading as low as $305.26, with volume below the daily average.
• Analysts remain broadly bullish on the stock: several firms raised price targets, and MarketBeat reports a consensus “Moderate Buy” rating with an average target of $360.51.
• The company reported strong quarterly results, beating EPS and revenue estimates, while insiders have recently sold shares and the stock continues to pay a small dividend yield of about 0.3%.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 2.1% during mid-day trading on Monday . The stock traded as low as $305.26 and last traded at $306.76. 8,056,542 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 11,344,513 shares. The stock had previously closed at $313.30.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Susquehanna restated a "positive" rating and set a $475.00 price target (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. Raymond James Financial set a $425.00 price objective on Lam Research in a report on Wednesday, June 10th. Morgan Stanley boosted their price objective on Lam Research from $331.00 to $404.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. Sanford C. Bernstein increased their target price on Lam Research from $325.00 to $340.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. Finally, Cantor Fitzgerald set a $500.00 target price on Lam Research and gave the company an "overweight" rating in a research report on Monday, June 29th. Twenty-eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $360.51.

Lam Research Stock Performance

The company has a market cap of $383.62 billion, a price-to-earnings ratio of 57.88, a P/E/G ratio of 1.86 and a beta of 1.80. The stock's fifty day simple moving average is $339.57 and its 200 day simple moving average is $269.60. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analyst estimates 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% 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 5.68 earnings per share for the current year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research's payout ratio is presently 19.62%.

Insider Activity

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the sale, the director owned 199,205 shares of the company's stock, valued at $69,881,114. This represents a 21.48% decrease in their position. 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 three months, insiders sold 104,621 shares of company stock worth $33,804,737. Company insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in LRCX. Cedar Mountain Advisors LLC lifted its stake in shares of Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 85 shares during the last quarter. Vermillion Wealth Management Inc. acquired a new stake in shares of Lam Research during the 1st quarter worth about $26,000. Hughes Financial Services LLC increased its position in shares of Lam Research by 54.9% during the 2nd quarter. Hughes Financial Services LLC now owns 141 shares of the semiconductor company's stock worth $61,000 after purchasing an additional 50 shares during the last quarter. PMV Capital Advisers LLC purchased a new stake in Lam Research in the 4th quarter valued at about $25,000. Finally, Bayban purchased a new stake in Lam Research in the 4th quarter valued at about $26,000. 84.61% of the stock is currently 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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