Lam Research (NASDAQ:LRCX) Shares Down 6.9% - Here's Why

Key Points

• Lam Research shares fell 6.9% during Tuesday trading, with volume running about 35% above the average session as the stock moved down from its prior close of $350.20.
• Despite the pullback, the company has strong analyst support: multiple firms recently raised price targets, citing continued AI-driven demand for semiconductor equipment and a favorable long-term outlook.
• Lam Research’s latest results were solid, with earnings and revenue beating estimates, and the company also announced a quarterly dividend of $0.26 per share. Insider selling has been notable, though, which may be pressuring sentiment.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) fell 6.9% during mid-day trading on Tuesday . The stock traded as low as $313.10 and last traded at $326.13. 15,418,912 shares changed hands during trading, an increase of 35% from the average session volume of 11,417,704 shares. The stock had previously closed at $350.20.

Lam Research News Summary

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

• Positive Sentiment: Lam Research was added to the Russell Top 50, which can improve institutional ownership and index-driven demand over time. Article: Lam Research (LRCX) Joins Russell Top 50 On An AI Narrative That Looks Fully Valued
• Positive Sentiment: Wall Street sentiment remains constructive, with Morgan Stanley, Susquehanna, Goldman Sachs, Cantor Fitzgerald and others raising price targets on LRCX amid expectations for continued AI-driven wafer-fab equipment demand. Article: Lam Research had its price target raised by Morgan Stanley...
• Positive Sentiment: Zacks highlighted Lam Research as a strong long-term stock, reinforcing the view that earnings momentum and industry demand remain favorable. Article: Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Positive Sentiment: Recent analyst notes said semiconductor equipment demand is being supported by AI infrastructure buildout and stronger foundry spending. Article: Analysts Just Raised Price Targets On These 3 Semiconductor Equipment Stocks (LRCX)
• Neutral Sentiment: Lam Research also appeared in several “chip rally” and “stocks making the biggest moves” roundups, suggesting it remains a focal point for momentum traders rather than being driven by company-specific news. Article: Stocks making the biggest moves premarket: Lam Research, Intel, Datadog & more
• Negative Sentiment: Insider trading data shows frequent selling and no open-market insider purchases over the last six months, which may weigh on investor sentiment.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on LRCX. Cantor Fitzgerald set a $500.00 price objective on shares of Lam Research and gave the stock an "overweight" rating in a research note on Monday, June 29th. JPMorgan Chase & Co. raised their price target on Lam Research from $300.00 to $315.00 and gave the company an "overweight" rating in a report on Thursday, April 23rd. Susquehanna restated a "positive" rating and set a $475.00 target price (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Mizuho set a $380.00 price target on Lam Research and gave the company an "outperform" rating in a report on Wednesday, May 27th. Finally, Jefferies Financial Group increased their price target on shares of Lam Research from $285.00 to $315.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $347.75.

Lam Research Trading Down 6.9%

The company has a market capitalization of $407.85 billion, a P/E ratio of 61.53, a PEG ratio of 2.10 and a beta of 1.80. 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 business's 50-day moving average price is $326.35 and its two-hundred day moving average price is $258.02.

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 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 quarter last year, the business posted $1.04 EPS. The firm'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 forecast that Lam Research Corporation will post 5.68 EPS for the current fiscal year.

Lam Research Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th will be 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 is Wednesday, June 17th. Lam Research's payout ratio is 19.62%.

Insiders Place Their Bets

In other Lam Research news, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total value of $2,371,226.40. Following the transaction, the senior vice president owned 58,470 shares of the company's stock, valued at approximately $18,102,312. The trade was a 11.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the company's stock in a transaction that occurred on Monday, April 27th. The shares were 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 of the company's stock, valued at $13,762,005.30. This trade represents a 10.15% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 86,339 shares of company stock worth $27,680,267. Company insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

Large investors have recently added to or reduced their stakes in the company. State Street Corp raised its position 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 shares of Lam Research by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company's stock valued at $5,764,117,000 after purchasing an additional 126,613 shares during the last quarter. Invesco Ltd. lifted its position in shares of Lam Research by 7.7% in the fourth quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company's stock worth $3,906,559,000 after purchasing an additional 1,638,406 shares in the last quarter. Norges Bank acquired a new position in Lam Research during the fourth quarter worth $3,645,427,000. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Lam Research by 352.2% during the fourth 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 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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