Lam Research (NASDAQ:LRCX) Stock Price Down 1.6% on Analyst Downgrade

Key Points

• Lam Research shares fell about 1.6% intraday to roughly $218.44 after Erste Group downgraded the stock from buy to hold; volume was ~6.7M shares, down ~44% from the daily average.
• The company beat quarterly estimates with EPS $1.27 (vs. $1.17 est.) and revenue of $5.34B, provided Q3 FY2026 guidance of $1.25–$1.45 EPS, and announced a quarterly dividend of $0.26 per share.
• Insiders have sold a total of 130,886 shares in the past three months — including CFO Douglas Bettinger’s sale of 50,057 shares (~$11.2M) — while analysts remain broadly positive with a consensus Moderate Buy and an average price target of $245.35.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price was down 1.6% during mid-day trading on Thursday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The stock traded as low as $208.80 and last traded at $218.44. Approximately 6,712,447 shares changed hands during trading, a decline of 44% from the average daily volume of 11,893,776 shares. The stock had previously closed at $222.01.

Several other brokerages have also issued reports on LRCX. Jefferies Financial Group reaffirmed a "buy" rating and set a $200.00 price target (up from $175.00) on shares of Lam Research in a research note on Monday, December 15th. Stifel Nicolaus upped their target price on shares of Lam Research from $250.00 to $280.00 and gave the company a "buy" rating in a research report on Thursday, January 29th. Wells Fargo & Company raised their target price on shares of Lam Research from $250.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, January 29th. New Street Research lifted their price target on shares of Lam Research from $140.00 to $235.00 and gave the stock a "neutral" rating in a research report on Tuesday. Finally, Zacks Research raised shares of Lam Research from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, Lam Research has a consensus rating of "Moderate Buy" and a consensus price target of $245.35.

Insider Transactions at Lam Research

In other Lam Research news, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research 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 transaction, the chief financial officer directly owned 1,081,705 shares in the company, valued at approximately $242,334,371.15. The trade was a 4.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Ava Harter sold 4,000 shares of the business's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $232.50, for a total value of $930,000.00. Following the completion of the transaction, the insider directly owned 54,705 shares of the company's stock, valued at approximately $12,718,912.50. The trade was a 6.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 130,886 shares of company stock valued at $29,658,802 over the last three months. 0.31% of the stock is currently owned by corporate insiders.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Analyst and research pieces highlight Lam’s strong positioning in AI-driven chip demand and operational improvements, supporting a longer-term bullish case. Lam Research: Poised For Growth
• Positive Sentiment: Zacks and other outlets are featuring Lam as a top long-term pick, reinforcing positive analyst attention that can help sentiment into the next quarter. Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Neutral Sentiment: New Street raised Lam’s price target to $235 (from $140) but kept a "neutral" rating — the higher target is supportive, but the unchanged stance limits immediate bullish impact. New Street Adjusts Price Target on Lam Research
• Neutral Sentiment: Lam scheduled its March-quarter earnings call for April 22 — a near-term event that will likely drive volatility as investors focus on bookings, guidance and China exposure. Lam Research Announces March Quarter Financial Conference Call
• Negative Sentiment: Erste Group downgraded Lam from "buy" to "hold" — analyst rating cuts can pressure shares by reducing investor conviction and fund demand. Erste Group Downgrades Lam Research
• Negative Sentiment: U.S. lawmakers proposed legislation to tighten exports of chipmaking tools to China. Broader export-control risks create uncertainty for equipment suppliers with China exposure and could constrain revenue visibility. US Lawmakers Propose Crackdown on Chip Tool Sales to China
• Negative Sentiment: Bridgewater’s Ray Dalio trimmed his Lam position, which can be interpreted as reduced confidence from a large institutional holder and may weigh on sentiment. Ray Dalio Trims Stake in Lam Research

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently modified their holdings of the business. Lingohr Asset Management GmbH lifted its position in shares of Lam Research by 590.7% in the third quarter. Lingohr Asset Management GmbH now owns 59,555 shares of the semiconductor company's stock worth $7,974,000 after purchasing an additional 50,933 shares in the last quarter. Mediolanum International Funds Ltd grew its position in Lam Research by 52.0% in the third quarter. Mediolanum International Funds Ltd now owns 262,544 shares of the semiconductor company's stock valued at $34,417,000 after purchasing an additional 89,856 shares in the last quarter. First Citizens Bank & Trust Co. increased its stake in Lam Research by 8.0% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 140,433 shares of the semiconductor company's stock valued at $18,804,000 after buying an additional 10,408 shares during the last quarter. Thoroughbred Financial Services LLC increased its stake in Lam Research by 115.2% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company's stock valued at $2,972,000 after buying an additional 11,883 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its position in Lam Research by 30.9% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 144,656 shares of the semiconductor company's stock worth $19,369,000 after buying an additional 34,147 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Lam Research Stock Performance

The stock's 50 day moving average price is $227.05 and its 200 day moving average price is $183.95. The company has a current ratio of 2.26, a quick ratio of 1.61 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $272.78 billion, a price-to-earnings ratio of 44.76, a P/E/G ratio of 2.30 and a beta of 1.78.

Lam Research (NASDAQ:LRCX - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.10. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The company had revenue of $5.34 billion during the quarter, compared to analysts' expectations of $5.23 billion. During the same quarter last year, the company earned $0.91 EPS. Lam Research's revenue for the quarter was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. Analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current year.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.04 annualized dividend and a dividend yield of 0.5%. Lam Research's payout ratio is 21.31%.

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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