Lam Research (NASDAQ:LRCX) Shares Down 5.8% - Time to Sell?

Key Points

• Lam Research shares fell 5.8% on Monday, trading around $329.92 after hitting a low of $326.90, with volume below its recent average.
• Wall Street sentiment remains largely positive despite the move lower: 28 analysts rate the stock a Buy, though Zacks recently cut it to Hold. The consensus price target is $350.81, while several firms raised targets as high as $475.
• The company posted strong recent results, beating earnings and revenue estimates with $1.47 EPS and $5.84 billion in quarterly revenue, up 23.8% year over year. Lam also pays a quarterly dividend of $0.26 per share, yielding about 0.3%.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) traded down 5.8% during trading on Monday . The stock traded as low as $326.90 and last traded at $329.92. Approximately 9,753,757 shares traded hands during mid-day trading, a decline of 14% from the average daily volume of 11,348,813 shares. The stock had previously closed at $350.33.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on LRCX. Zacks Research lowered shares of Lam Research from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 6th. Needham & Company LLC raised their target price on Lam Research from $300.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday. Stifel Nicolaus upped their price target on shares of Lam Research from $325.00 to $425.00 and gave the company a "buy" rating in a research report on Friday. Susquehanna reiterated a "positive" rating and set a $475.00 price target (up from $385.00) on shares of Lam Research in a research note on Tuesday, June 30th. Finally, Citigroup reissued a "buy" rating and set a $450.00 price objective (up from $315.00) on shares of Lam Research in a research report on Wednesday, June 17th. Twenty-eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $350.81.

Lam Research Stock Down 5.8%

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The firm has a market capitalization of $412.61 billion, a PE ratio of 62.25, a P/E/G ratio of 2.07 and a beta of 1.80. The company has a 50-day moving average price of $334.89 and a 200 day moving average price of $264.23.

Lam Research (NASDAQ:LRCX - Get Free Report) last released 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 net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $5.84 billion for the quarter, compared to analysts' expectations of $5.70 billion. During the same quarter last year, the business posted $1.04 earnings per share. The company's revenue for the quarter 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. Analysts forecast that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

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

Insider Activity at Lam Research

In other Lam Research news, insider Ava Harter sold 6,010 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the completion of the transaction, the insider owned 53,205 shares in the company, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. The trade was a 21.48% 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. Over the last three months, insiders sold 86,339 shares of company stock valued at $27,680,267. Insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Fideuram Asset Management Ireland dac acquired a new stake in shares of Lam Research in the 4th quarter worth $10,035,000. Generali Investments Management Co LLC boosted its position in shares of Lam Research by 62.0% during the 4th quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company's stock valued at $6,209,000 after acquiring an additional 13,878 shares during the last quarter. Krilogy Financial LLC grew its holdings in shares of Lam Research by 19.5% in the first quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company's stock valued at $6,006,000 after purchasing an additional 4,584 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in Lam Research during the first quarter worth about $26,489,000. Finally, Whalen Wealth Management Inc. purchased a new position in Lam Research during the fourth quarter worth about $1,423,000. 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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