Lam Research (NASDAQ:LRCX) Stock Price Down 2.9% - Here's What Happened

Key Points

• Lam Research shares fell 2.9% to $309.56 in midday trading, with volume about 43% below the average daily level.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $364.59, despite some target revisions.
• The company exceeded quarterly expectations with $1.82 in EPS and $6.72 billion in revenue, while raising its quarterly dividend from $0.26 to $0.33 per share.

Lam Research Corporation (NASDAQ:LRCX - Get Free Report)'s stock price dropped 2.9% during trading on Monday. The company traded as low as $308.01 and last traded at $309.56. Approximately 6,079,867 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 10,672,290 shares. The stock had previously closed at $318.84.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on LRCX shares. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Susquehanna reissued a "positive" rating and set a $475.00 price objective (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. Evercore reissued an "outperform" rating and set a $355.00 price objective on shares of Lam Research in a research report on Monday, July 20th. Berenberg Bank set a $420.00 target price on Lam Research in a research note on Wednesday, September 9th. Finally, Jefferies Financial Group set a $335.00 target price on Lam Research and gave the company a "buy" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $364.59.

Lam Research Trading Down 2.9%

The business has a fifty day moving average of $310.98 and a 200-day moving average of $306.38. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The company has a market capitalization of $387.39 billion, a P/E ratio of 53.74, a PEG ratio of 1.26 and a beta of 1.85.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. The business had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. Lam Research's revenue was up 30.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Analysts anticipate that Lam Research Corporation will post 9.34 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. This is an increase from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Wednesday, September 23rd. Lam Research's dividend payout ratio is 22.92%.

Insider Transactions at Lam Research

In other news, Director Bethany Mayer sold 9,557 shares of Lam Research stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company's stock, valued at approximately $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.31% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lam Research

A number of hedge funds have recently added to or reduced their stakes in the stock. Bayban bought a new position in shares of Lam Research in the fourth quarter worth $26,000. Vermillion Wealth Management Inc. purchased a new stake in shares of Lam Research in the first quarter worth $26,000. Cedar Mountain Advisors LLC raised its position in shares of Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after buying an additional 85 shares in the last quarter. Paladin Partners LLC bought a new stake in Lam Research during the second quarter valued at $26,000. Finally, University of Illinois Foundation bought a new stake in Lam Research during the fourth quarter valued at $30,000. Institutional investors and hedge funds own 84.61% of the company's stock.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company's portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.