Lam Research (NASDAQ:LRCX) Shares Down 2.4% - What's Next?

Key Points

• Lam Research shares fell 2.4% in Monday trading, with the stock dipping as low as $273.08 before closing at $277.96, below the prior close of $284.72.
• Analysts remain broadly bullish despite the pullback: 27 analysts rate the stock a Buy and 7 a Hold, with an average target price of $292.97. Recent firms, including Stifel and Mizuho, raised their price targets to $325 and $330, respectively.
• Recent earnings were strong, with Lam Research reporting $1.47 EPS on $5.84 billion in revenue, both above estimates, and revenue rising 23.8% year over year. The company also has significant institutional backing, with hedge funds and other institutions owning 84.61% of shares.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s share price dropped 2.4% during mid-day trading on Monday . The stock traded as low as $273.08 and last traded at $277.96. Approximately 8,529,249 shares traded hands during trading, a decline of 22% from the average daily volume of 11,005,409 shares. The stock had previously closed at $284.72.

Wall Street Analysts Forecast Growth

LRCX has been the topic of a number of analyst reports. Stifel Nicolaus increased their price target on shares of Lam Research from $300.00 to $325.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Mizuho upped their target price on shares of Lam Research from $295.00 to $330.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 target price on shares of Lam Research in a report on Thursday, April 23rd. New Street Research lifted their price target 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. Finally, Barclays set a $275.00 price objective on shares of Lam Research and gave the company an "equal weight" rating in a research report on Thursday, April 23rd. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and an average target price of $292.97.

Lam Research Price Performance

The company's fifty day moving average price is $246.23 and its two-hundred day moving average price is $211.11. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The company has a market cap of $347.61 billion, a price-to-earnings ratio of 52.45, a PEG ratio of 2.36 and a beta of 1.81.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.11. The business had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm's quarterly revenue was up 23.8% on a year-over-year basis. During the same period last year, the business posted $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities research analysts forecast that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Insider Activity

In other news, CFO Douglas R. Bettinger sold 50,057 shares of the company's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the completion of the transaction, the chief financial officer directly owned 1,081,705 shares of the company's stock, valued at $242,334,371.15. This represents a 4.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Neil J. Fernandes sold 18,170 shares of Lam Research stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $255.14, for a total value of $4,635,893.80. Following the completion of the sale, the senior vice president directly owned 66,129 shares in the company, valued at approximately $16,872,153.06. This represents a 21.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 120,066 shares of company stock worth $27,953,242 over the last three months. Corporate insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Lam Research by 0.3% in the third quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company's stock valued at $17,537,447,000 after purchasing an additional 364,949 shares during the last quarter. State Street Corp grew its stake in Lam Research by 0.4% in the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company's stock valued at $8,024,684,000 after buying an additional 265,805 shares during the last quarter. Geode Capital Management LLC raised its holdings in 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 valued at $5,764,117,000 after acquiring an additional 126,613 shares during the period. Invesco Ltd. lifted its position in Lam Research by 7.7% during the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after acquiring an additional 1,638,406 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Lam Research during the fourth quarter worth approximately $3,645,427,000. Institutional investors own 84.61% of the company's stock.

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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