Lam Research (NASDAQ:LRCX) Stock Price Down 5.8% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 5.8% on Monday . The company traded as low as $326.90 and last traded at $329.92. Approximately 9,753,757 shares traded hands during mid-day trading, a decline of 14% from the average daily volume of 11,348,813 shares. The stock had previously closed at $350.33.

Trending Headlines about Lam Research

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

• Positive Sentiment: Mizuho raised its price target on Lam Research to $400 from $380 and kept an Outperform rating, citing expectations that AI demand will support durable wafer fab equipment spending through 2027-2029. Mizuho Raises its Price Target on Lam Research Corporation (LRCX)
• Positive Sentiment: Recent commentary continues to highlight Lam Research as a beneficiary of AI-related spending, including demand tied to HBM, advanced DRAM, and leading-edge chips, which supports expectations for strong sales into the next earnings report. Can AI Chip Boom Help LRCX Reach Record Q4 Sales Target of $6.6B?
• Positive Sentiment: Market commentary says chip-equipment sentiment has improved ahead of Lam Research’s late-July earnings report, which may be encouraging traders to rotate back into the stock. Lam Research Rises as Chip-Equipment Sentiment Improves Ahead of Earnings
• Neutral Sentiment: Media coverage, including comments from Jim Cramer, has kept Lam Research in the spotlight, but these reports mostly reinforce the existing bullish AI narrative rather than adding new company-specific catalysts. Jim Cramer Shares Why am Research Corporation (LRCX) is on Fire
• Negative Sentiment: Director Abhijit Y. 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
• Negative Sentiment: There is still some caution around the semiconductor group after recent weakness tied to cooling AI memory enthusiasm and broader chip-sector volatility, which could limit upside if spending expectations soften. Lam Research (LRCX) Stock Slides As AI Memory Boom Loses Steam

Wall Street Analyst Weigh In

LRCX has been the subject of several recent research reports. Berenberg Bank boosted their target price on shares of Lam Research from $265.00 to $335.00 and gave the stock a “buy” rating in a research report on Thursday, April 23rd. JPMorgan Chase & Co. raised their price target 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. TD Cowen reiterated a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Susquehanna reissued a “positive” rating and set a $475.00 price objective (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Finally, Cantor Fitzgerald set a $500.00 price objective on Lam Research and gave the stock an “overweight” rating in a research note on Monday, June 29th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $358.67.

Lam Research Stock Performance

The company’s fifty day moving average price is $337.74 and its 200 day moving average price is $266.51. The company has a market cap of $432.82 billion, a PE ratio of 65.30, a P/E/G ratio of 1.95 and a beta of 1.80. 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) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $5.70 billion. During the same period last year, the firm earned $1.04 earnings per share. The firm’s revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities research analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current year.

Lam Research Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s payout ratio is presently 19.62%.

Insiders Place Their Bets

In other news, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was 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 of the company’s stock, valued at $69,881,114. This represents a 21.48% decrease in their ownership of the stock. The transaction 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, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $255.14, for a total value of $4,635,893.80. Following the sale, the senior vice president directly owned 66,129 shares of the company’s stock, valued at $16,872,153.06. The trade was a 21.55% 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 have sold 104,621 shares of company stock worth $33,804,737 over the last 90 days. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Large investors have recently made changes to their positions in the business. PMV Capital Advisers LLC purchased a new stake in Lam Research during the fourth quarter worth about $25,000. Stance Capital LLC purchased a new position in Lam Research in the third quarter valued at about $26,000. Bayban bought a new position in shares of Lam Research during the 4th quarter valued at approximately $26,000. Vermillion Wealth Management Inc. bought a new position in shares of Lam Research during the 1st quarter valued at approximately $26,000. Finally, Cedar Mountain Advisors LLC grew its position in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 shares during the period. 84.61% of the stock is owned by hedge funds and other 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.