Lam Research (NASDAQ:LRCX) Downgraded by Zacks Research to Hold

Lam Research (NASDAQ:LRCX) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Thursday, Zacks reports.

A number of other research analysts have also recently issued reports on LRCX. Bank of America reissued a “buy” rating and set a $345.00 price objective on shares of Lam Research in a report on Thursday. Berenberg Bank set a $420.00 target price on shares of Lam Research in a research report on Wednesday, September 9th. B. Riley Financial boosted their price target on shares of Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a research report on Thursday, October 1st. Fundamental Research set a $390.00 price objective on shares of Lam Research in a report on Thursday, October 1st. Finally, Jefferies Financial Group set a $335.00 target price on shares of Lam Research and gave the company a “buy” rating in a research note on Thursday, July 30th. Twenty-six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $354.55.

Lam Research Price Performance

NASDAQ:LRCX opened at $230.10 on Thursday. Lam Research has a 52 week low of $135.50 and a 52 week high of $438.50. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.91 and a current ratio of 2.48. The company has a market capitalization of $287.95 billion, a price-to-earnings ratio of 34.29, a PEG ratio of 0.83 and a beta of 1.85. The company has a 50-day moving average of $301.90 and a 200-day moving average of $309.32.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The firm had revenue of $8.22 billion during the quarter, compared to analysts’ expectations of $8.14 billion. During the same quarter last year, the company earned $1.26 earnings per share. The company’s revenue for the quarter was up 54.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Lam Research will post 9.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the transaction, the director owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Ava Harter sold 5,000 shares of the company’s 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 transaction, the insider owned 42,462 shares in the company, 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. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Polaris Financial Partners acquired a new position in shares of Lam Research in the 3rd quarter valued at approximately $4,814,000. Bank of America Corp DE boosted its holdings in shares of Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock valued at $4,872,426,000 after purchasing an additional 584,489 shares in the last quarter. Rokos Capital Management LLP boosted its holdings in shares of Lam Research by 42.0% in the 1st quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock valued at $55,532,000 after purchasing an additional 76,840 shares in the last quarter. Aware Super Pty Ltd as trustee of Aware Super bought a new position in shares of Lam Research in the 1st quarter valued at $59,973,000. Finally, Y Intercept Hong Kong Ltd bought a new position in shares of Lam Research in the 1st quarter valued at $26,489,000. Institutional investors own 84.61% of the company’s stock.

Lam Research News Roundup

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

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

About Lam Research

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.