Lam Research (NASDAQ:LRCX) Stock Price Down 3.4% - Here's Why

Lam Research Corporation (NASDAQ:LRCX - Get Free Report) shares dropped 3.4% on Friday. The company traded as low as $218.90 and last traded at $225.92. Approximately 10,978,354 shares traded hands during mid-day trading, an increase of 0% from the average daily volume of 10,954,359 shares. The stock had previously closed at $233.78.

Lam Research News Summary

Investors following LRCX have been watching these news items:

• Positive Sentiment: Lam’s board authorized a share-repurchase program of up to $25 billion and reaffirmed its quarterly dividend at $0.33 per share, providing a potential source of shareholder returns. Article: Lam Research Just Gave Investors Something To Think About
• Positive Sentiment: Bernstein analyst Stacy Rasgon remains favorable on Lam after its steep recent decline, while Wells Fargo’s move to a neutral view on U.S. AI infrastructure suggests a less negative backdrop for the sector. Article: Lam Research Lost About 34% in a Month. Here’s Why Bernstein’s Rasgon Still Likes It
• Negative Sentiment: Lam shares fell alongside Applied Materials and KLA amid technology-sector selling linked to news of NVIDIA CEO Jensen Huang’s departure. The move points to continued sensitivity to AI and semiconductor-sector sentiment. Article: What’s Going On With Lam Research Stock Friday?

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Morgan Stanley set a $339.00 price objective on shares of Lam Research and gave the stock an "overweight" rating in a research report on Thursday, October 22nd. Weiss Ratings lowered shares of Lam Research from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 4th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the stock a "buy" rating in a report on Thursday, July 30th. Mizuho dropped their price target on Lam Research from $365.00 to $360.00 and set an "outperform" rating on the stock in a research note on Thursday, October 22nd. Finally, Evercore set a $315.00 price objective on Lam Research in a report on Tuesday, October 20th. Twenty-six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $357.57.

Lam Research Trading Down 3.4%

The business's 50 day moving average price is $279.00 and its 200-day moving average price is $283.79. The company has a current ratio of 2.48, a quick ratio of 1.86 and a debt-to-equity ratio of 0.27. The company has a market cap of $282.21 billion, a price-to-earnings ratio of 33.67, a PEG ratio of 0.87 and a beta of 1.97.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.18 by $0.02. The company had revenue of $8.22 billion during the quarter, compared to analysts' expectations of $8.14 billion. Lam Research had a return on equity of 72.15% and a net margin of 32.34%. The business's revenue was up 54.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.26 earnings per share. On average, equities analysts anticipate that Lam Research Corporation will post 9.60 EPS for the current fiscal year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 6th. Investors of record on Wednesday, December 2nd will be given a dividend of $0.33 per share. The ex-dividend date is Wednesday, December 2nd. This represents a $1.32 annualized dividend and a dividend yield of 0.6%. Lam Research's dividend payout ratio (DPR) is currently 19.67%.

Lam Research announced that its board has initiated a stock buyback program on Thursday, November 5th that permits the company to buy back $25 billion in outstanding shares. This buyback authorization permits the semiconductor company to repurchase up to 9% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of Lam Research stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the transaction, the director owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Ava Harter sold 5,000 shares of the company's stock in a transaction that occurred on 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 transaction, the insider owned 42,462 shares of the company's stock, valued at approximately $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,573 shares of company stock worth $4,523,606 over the last three months. 0.31% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LRCX. New World Advisors LLC increased its stake in Lam Research by 22.3% in the 3rd quarter. New World Advisors LLC now owns 1,643 shares of the semiconductor company's stock worth $540,000 after buying an additional 300 shares during the period. State Board of Administration of Florida Retirement System boosted its position in Lam Research by 7.8% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 1,157,656 shares of the semiconductor company's stock valued at $380,302,000 after buying an additional 84,056 shares during the period. 49 Wealth Management LLC purchased a new stake in Lam Research in the 3rd quarter valued at about $933,000. Dock Street Asset Management Inc. boosted its position in Lam Research by 899.8% in the 3rd quarter. Dock Street Asset Management Inc. now owns 27,925 shares of the semiconductor company's stock valued at $9,174,000 after buying an additional 25,132 shares during the period. Finally, Mosaic Family Wealth Partners LLC grew its stake in Lam Research by 11.4% in the 3rd quarter. Mosaic Family Wealth Partners LLC now owns 2,567 shares of the semiconductor company's stock worth $843,000 after acquiring an additional 263 shares in the last quarter. 84.61% of the stock is owned by institutional investors.

About Lam Research

Lam Research is a global supplier of equipment and services used to manufacture semiconductors. Its products help chipmakers create and process the microscopic structures that form integrated circuits. The company's wafer fabrication equipment is used for processes including etch, thin-film deposition and wafer cleaning. Lam also provides services such as equipment maintenance, upgrades, spare parts and other support for chip manufacturing operations. Founded in 1980 and headquartered in Fremont, California, Lam Research serves semiconductor manufacturers around the world.

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