Lam Research (NASDAQ:LRCX) Stock Price Down 8.3% – Time to Sell?

Shares of Lam Research Corporation (NASDAQ:LRCX) traded down 8.3% on Monday . The company traded as low as $273.24 and last traded at $273.49. Approximately 13,085,791 shares traded hands during mid-day trading, an increase of 20% from the average session volume of 10,883,552 shares. The stock had previously closed at $298.22.

Analyst Upgrades and Downgrades

LRCX has been the subject of a number of recent analyst reports. TD Cowen reaffirmed 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. Evercore reissued an “outperform” rating and issued a $355.00 price target on shares of Lam Research in a research report on Monday, July 20th. Oppenheimer restated an “outperform” rating and issued a $400.00 price objective (up from $330.00) on shares of Lam Research in a research note on Monday, June 15th. Sanford C. Bernstein upped their price objective on shares of Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Finally, HSBC reiterated a “hold” rating and issued a $333.00 target price on shares of Lam Research in a research note on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $361.81.

Lam Research Trading Down 8.3%

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 50-day simple moving average of $313.37 and a 200 day simple moving average of $294.18. The company has a market capitalization of $342.22 billion, a P/E ratio of 47.48, a P/E/G ratio of 1.18 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same period in the previous year, the company earned $1.33 earnings per share. The company’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. Sell-side analysts expect that Lam Research Corporation will post 9.33 earnings per share for the current year.

Lam Research Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 0.5%. The ex-dividend date is Wednesday, September 23rd. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio is currently 18.06%.

Insider Buying and Selling at Lam Research

In other news, Director Bethany Mayer sold 9,557 shares of the company’s 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 owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This 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 accessible through the SEC website. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the sale, the insider 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 32,839 shares of company stock valued at $10,644,740 in the last ninety days. Company insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

A number of hedge funds have recently modified their holdings of the company. California State Teachers Retirement System boosted its position in Lam Research by 42,619.5% in the second quarter. California State Teachers Retirement System now owns 821,470,614 shares of the semiconductor company’s stock valued at $355,967,861,000 after buying an additional 819,547,672 shares in the last quarter. Norges Bank acquired a new stake in shares of Lam Research during the fourth quarter worth approximately $3,645,427,000. Van ECK Associates Corp raised its stake in shares of Lam Research by 411.8% in the second quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after acquiring an additional 8,922,854 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Lam Research in the second quarter valued at approximately $3,777,585,000. Finally, Franklin Resources Inc. boosted its holdings in shares of Lam Research by 57.0% in the 4th quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company’s stock worth $1,730,724,000 after acquiring an additional 3,671,073 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.