Lam Research (NASDAQ:LRCX) Trading Down 1.6% Following Analyst Downgrade

Key Points

• Lam Research shares fell 1.6% after Morgan Stanley cut its price target from $404 to $367, though it maintained an overweight rating. The stock traded near $293 on higher-than-average volume.
• The company reported strong quarterly results, with revenue rising 30% year over year to $6.72 billion and EPS of $1.82, beating analyst expectations.
• Lam Research issued significantly above-consensus guidance for fiscal first-quarter 2027, citing robust AI infrastructure, memory, advanced packaging and wafer-fabrication demand. Despite the downgrade, analysts’ consensus remains a “Moderate Buy” with an average target price of $358.47.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares dropped 1.6% during trading on Friday after Morgan Stanley lowered their price target on the stock from $404.00 to $367.00. Morgan Stanley currently has an overweight rating on the stock. Lam Research traded as low as $292.93 and last traded at $293.02. Approximately 12,525,630 shares were traded during mid-day trading, an increase of 10% from the average daily volume of 11,423,680 shares. The stock had previously closed at $297.72.

Several other equities research analysts also recently issued reports on LRCX. Oppenheimer reiterated an "outperform" rating and issued a $400.00 target price (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. Berenberg Bank boosted their price target on Lam Research from $265.00 to $335.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. UBS Group restated a "buy" rating and issued a $375.00 price objective (up from $310.00) on shares of Lam Research in a research note on Tuesday, June 9th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $350.00 price objective (down from $450.00) on shares of Lam Research in a research report on Thursday. Finally, Citigroup reissued a "buy" rating and set a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $358.47.

Insiders Place Their Bets

In other news, SVP Neil J. Fernandes sold 7,659 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was 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 owned 58,470 shares in the company, valued at $18,102,312. The trade was a 11.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares in the company, valued at $69,881,114. The trade was a 21.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 80,441 shares of company stock worth $27,614,296 over the last three months. Insiders own 0.31% of the company's stock.

More Lam Research News

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

• Positive Sentiment: Lam Research reported record quarterly revenue of $6.72 billion, up 30% year over year, and adjusted EPS of $1.82, exceeding consensus estimates of $6.66 billion and $1.69, respectively. NAND revenue more than doubled sequentially, while customer-support revenue reached a third consecutive record. LRCX Q4 Earnings Beat on NAND and Customer Support Strength
• Positive Sentiment: The company’s first-quarter fiscal 2027 guidance significantly exceeded expectations: revenue of approximately $7.7 billion to $8.5 billion versus a $7.0 billion consensus forecast, and EPS of $2.00 to $2.30 versus $1.81 expected. Management cited accelerating AI infrastructure investment and stronger demand across memory, advanced packaging and wafer fabrication. Chip equipment maker Lam Research forecasts strong revenue on AI boom
• Positive Sentiment: Analysts remain constructive following the results. Needham reaffirmed its Buy rating and $390 target, raised EPS estimates, and described Lam as having an “extraordinary runway” into 2027. Needham Raises Lam Research EPS Estimates
• Positive Sentiment: Mizuho pushed back on fears that Chinese memory maker CXMT will overwhelm the DRAM market and damage pricing. Reduced concern about a potential memory glut supports demand expectations for Lam’s memory-manufacturing equipment. Tech specialist explains why China memory fears are overblown

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Bayban acquired a new stake in Lam Research in the 4th quarter worth about $26,000. Vermillion Wealth Management Inc. acquired a new position in shares of Lam Research during the 1st quarter worth approximately $26,000. Cedar Mountain Advisors LLC increased its holdings in shares of Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after purchasing an additional 85 shares during the period. Mcguire Capital Advisors Inc. bought a new position in shares of Lam Research during the fourth quarter worth approximately $27,000. Finally, Triumph Capital Management acquired a new stake in shares of Lam Research in the third quarter valued at approximately $27,000. Institutional investors own 84.61% of the company's stock.

Lam Research Trading Down 1.6%

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 company has a market capitalization of $366.44 billion, a price-to-earnings ratio of 50.87, a P/E/G ratio of 1.50 and a beta of 1.80. The business's 50-day moving average price is $341.06 and its two-hundred day moving average price is $276.36.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 71.15% and a net margin of 31.27%.The business had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. During the same quarter in the prior year, the business posted $1.33 earnings per share. The firm's quarterly revenue was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Research analysts predict that Lam Research Corporation will post 7.92 earnings per share for the current year.

Lam Research Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Wednesday, June 17th. Lam Research's dividend payout ratio is 18.06%.

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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