Lam Research (NASDAQ:LRCX) Stock Price Down 2.3% - Here's What Happened

Key Points

• Lam Research shares fell 2.3% on Tuesday, trading as low as $277.77 before last changing hands at $289.24, below the prior close of $296.05. Trading volume also came in lighter than normal, at about 8.5 million shares versus an average of 11.1 million.
• Despite the pullback, recent updates were broadly positive: the company reported strong quarterly earnings, with EPS and revenue both topping estimates, and non-GAAP gross margin approached 50%, helped by AI-driven demand.
• Wall Street remains constructive on the stock, with several firms raising price targets and 26 analysts rating it a Buy. The consensus target sits around $291.75, while B. Riley lifted its target to $375 and kept a Buy rating.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 2.3% on Tuesday . The stock traded as low as $277.77 and last traded at $289.24. Approximately 8,511,028 shares changed hands during trading, a decline of 23% from the average daily volume of 11,116,329 shares. The stock had previously closed at $296.05.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam Research’s non-GAAP gross margin reached 49.9%, with guidance pointing to about 50.5%, reinforcing the view that pricing power and operating leverage are improving as AI chip demand stays strong. LRCX's Gross Margin Near 50%: More Upside Ahead Amid AI-Led Demand?
• Positive Sentiment: B. Riley Financial raised its price target on Lam Research to $375 from $350 and kept a Buy rating, signaling more upside potential than the current share price implies. B. Riley Adjusts Price Target on Lam Research to $375 From $350, Maintains Buy Rating
• Positive Sentiment: Recent commentary highlighted Lam Research as a beneficiary of AI infrastructure spending, global foundry expansion, and strong earnings momentum, which has helped support the stock near its highs. Assessing Lam Research (LRCX) Valuation After AI Infrastructure Momentum And Analyst Upgrades
• Neutral Sentiment: Articles debating whether Lam Research is near a 52-week high and whether investors should buy or take profits reflect strong momentum, but also suggest some near-term valuation caution. Lam Research Stock Trades Near 52-Week High: Buy More or Book Profits?

Wall Street Analysts Forecast Growth

LRCX has been the topic of several recent research reports. The Goldman Sachs Group reissued a "buy" rating and set a $290.00 price target on shares of Lam Research in a research report on Thursday, April 23rd. Erste Group Bank cut shares of Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Summit Insights raised shares of Lam Research from a "hold" rating to a "buy" rating in a research report on Thursday, January 29th. Jefferies Financial Group upped their target price on shares of Lam Research from $285.00 to $315.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. upped their target price on shares of Lam Research from $300.00 to $315.00 and gave the company an "overweight" rating in a research report on Thursday, April 23rd. Twenty-six analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $291.75.

Lam Research Price Performance

The firm has a market cap of $361.71 billion, a price-to-earnings ratio of 54.57, a PEG ratio of 2.43 and a beta of 1.81. 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's 50-day moving average price is $240.96 and its 200-day moving average price is $207.09.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.11. The business had revenue of $5.84 billion for the quarter, compared to analysts' expectations of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The business's quarterly revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $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 year.

Insider Transactions at Lam Research

In other news, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the sale, the senior vice president owned 66,129 shares of the company's stock, valued at approximately $16,872,153.06. This represents a 21.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction dated 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 sale, the insider directly owned 53,205 shares in the company, valued at $13,762,005.30. This represents a 10.15% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 120,066 shares of company stock valued at $27,953,242. 0.31% of the stock is currently owned by corporate insiders.

Institutional Trading of Lam Research

A number of large investors have recently made changes to their positions in LRCX. Brighton Jones LLC increased its stake in shares of Lam Research by 1,032.4% during the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company's stock worth $1,025,000 after buying an additional 12,936 shares during the period. Caxton Associates LLP purchased a new stake in shares of Lam Research during the first quarter worth approximately $239,000. Gabelli Funds LLC purchased a new stake in shares of Lam Research during the second quarter worth approximately $253,000. NewEdge Advisors LLC increased its stake 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 buying an additional 2,661 shares during the period. Finally, Osterweis Capital Management Inc. increased its stake in shares of Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company's stock worth $77,000 after buying an additional 781 shares during the period. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

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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