Lam Research (NASDAQ:LRCX) Stock Price Down 1.2% - Time to Sell?

Key Points

• Lam Research shares fell 1.2% to $310.17, below their 50-day moving average of $337.47 but above the 200-day average of $286.43.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $358.47; recent targets range from $335 to $400.
• The company exceeded quarterly earnings and revenue estimates, reporting $1.82 EPS and $6.72 billion in revenue, with revenue up 30% year over year. However, insiders sold 80,441 shares worth $27.6 million over the past 90 days.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares traded down 1.2% on Monday . The company traded as low as $297.78 and last traded at $310.17. 7,850,878 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 11,167,435 shares. The stock had previously closed at $314.00.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on LRCX shares. B. Riley Financial dropped their price target on Lam Research from $385.00 to $350.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Zacks Research upgraded Lam Research from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Mizuho upped their target price on Lam Research from $380.00 to $400.00 and gave the company an "outperform" rating in a report on Thursday, July 9th. Barclays reaffirmed an "overweight" rating and issued a $335.00 target price (up from $275.00) on shares of Lam Research in a research note on Thursday, June 11th. Finally, Jefferies Financial Group set a $335.00 price target on Lam Research and gave the stock a "buy" rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $358.47.

Lam Research Trading Down 1.2%

The stock has a market cap of $388.12 billion, a PE ratio of 53.85, a price-to-earnings-growth ratio of 1.25 and a beta of 1.84. The company's 50-day moving average price is $337.47 and its 200 day moving average price is $286.43. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The firm's revenue for the quarter was up 30.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, sell-side analysts forecast that Lam Research Corporation will post 9.32 EPS for the current fiscal year.

Insider Buying and Selling

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the completion of the transaction, the director owned 199,205 shares of the company's stock, valued at $69,881,114. This trade represents a 21.48% 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, SVP Neil J. Fernandes sold 7,659 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $309.60, for a total transaction of $2,371,226.40. Following the completion of the sale, the senior vice president directly owned 58,470 shares in the company, valued at $18,102,312. This trade represents a 11.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 80,441 shares of company stock valued at $27,614,296. 0.31% of the stock is currently owned by insiders.

Institutional Trading of Lam Research

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