Lam Research (NASDAQ:LRCX) Stock Price Down 3.1% on Insider Selling

Key Points

• Lam Research shares fell 3.1% after insider selling, with Director Abhijit Y. Talwalkar selling 18,282 shares in a pre-arranged Rule 10b5-1 transaction valued at about $6.1 million.
• Despite the stock pullback, analysts remain broadly bullish: several firms recently raised price targets, and Lam Research now has 28 Buy ratings versus 6 Holds, with a consensus target price of $358.67.
• The company’s recent fundamentals were strong, as it beat quarterly earnings and revenue estimates and reported year-over-year revenue growth of 23.8%, while also paying a quarterly dividend of $0.26 per share.

Shares of Lam Research Corporation (NASDAQ:LRCX - Get Free Report) dropped 3.1% during trading on Wednesday following insider selling activity. The company traded as low as $319.79 and last traded at $335.43. 10,239,778 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 11,363,407 shares. The stock had previously closed at $346.10.

Specifically, Director Abhijit Y. Talwalkar sold 18,282 shares of the business's stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on LRCX. Seaport Research Partners started coverage on Lam Research in a research report on Monday, May 4th. They set a "buy" rating and a $300.00 target price for the company. B. Riley Financial increased their price objective on shares of Lam Research from $350.00 to $375.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. UBS Group reiterated a "buy" rating and set a $375.00 price objective (up from $310.00) on shares of Lam Research in a research report on Tuesday, June 9th. Stifel Nicolaus boosted their target price on shares of Lam Research from $325.00 to $425.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Finally, TD Cowen restated a "buy" rating and set a $400.00 target price (up from $340.00) on shares of Lam Research in a research report on Thursday, July 9th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and a consensus target price of $358.67.

Trending Headlines about Lam Research

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

• Positive Sentiment: TD Cowen raised its price target on Lam Research and kept a Buy rating, adding to the recent stream of bullish analyst updates. TD Cowen Raises PT on Lam Research (LRCX), Keeps a Buy
• Positive Sentiment: Mizuho lifted its price target on LRCX to $400 from $380 and reiterated an Outperform rating, saying AI demand should support wafer fab equipment spending for years. Mizuho Raises its Price Target on Lam Research Corporation (LRCX)
• Positive Sentiment: Morgan Stanley highlighted Lam Research as a stock it thinks could outperform into earnings, citing expectations for strong quarterly results. Buy GE Vernova, Lam Research, United Airlines stocks: Morgan Stanley
• Neutral Sentiment: Coverage comparing Lam Research with other AI semiconductor names suggests investors are still weighing valuation versus growth, but the broader AI equipment theme remains intact. ASX vs. LRCX: Which AI Semiconductor Stock is the Better Buy?
• Negative Sentiment: Recent commentary also pointed to cooling AI memory enthusiasm and softer semiconductor sentiment, which could cap upside if capital spending slows. Lam Research (LRCX) Stock Slides As AI Memory Boom Loses Steam
• Negative Sentiment: Director Abhijit Talwalkar sold 18,282 shares in a pre-arranged Rule 10b5-1 transaction, which may slightly weigh on sentiment even though the sale was planned. Lam Research director stock sale

Lam Research Price Performance

The company has a market cap of $419.48 billion, a P/E ratio of 63.29, a PEG ratio of 1.95 and a beta of 1.80. The firm's 50-day moving average is $337.74 and its two-hundred day moving average is $266.51. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 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 business had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.70 billion. During the same quarter last year, the business earned $1.04 earnings per share. Lam Research's quarterly 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. Analysts anticipate that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were given a $0.26 dividend. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 annualized dividend and a yield of 0.3%. Lam Research's dividend payout ratio (DPR) is currently 19.62%.

Institutional Investors Weigh In On Lam Research

Several large investors have recently added to or reduced their stakes in the stock. Fideuram Asset Management Ireland dac purchased a new position in shares of Lam Research in the fourth quarter valued at approximately $10,035,000. Generali Investments Management Co LLC increased its stake in 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 worth $6,209,000 after buying an additional 13,878 shares during the period. Krilogy Financial LLC lifted its holdings in Lam Research by 19.5% during the 1st quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company's stock worth $6,006,000 after buying an additional 4,584 shares in the last quarter. Y Intercept Hong Kong Ltd acquired a new stake in Lam Research during the 1st quarter worth approximately $26,489,000. Finally, Whalen Wealth Management Inc. purchased a new position in Lam Research in the 4th quarter valued at approximately $1,423,000. 84.61% of the stock is owned by institutional investors.

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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