Lam Research (NASDAQ:LRCX) Stock Price Down 9.8% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) shares dropped 9.8% on Friday . The company traded as low as $302.74 and last traded at $303.28. Approximately 13,220,670 shares changed hands during trading, an increase of 23% from the average daily volume of 10,774,810 shares. The stock had previously closed at $336.41.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Analysts and hedge fund commentary remain constructive on Lam Research, viewing it as a wide-moat leader in semiconductor equipment with meaningful upside potential as chipmakers keep investing in advanced manufacturing. What Do Analysts Say About Lam Research (LRCX)’s Earnings Outlook?
• Positive Sentiment: Investor commentary also points to Lam Research’s growing importance in essential chip manufacturing, reinforcing the view that demand for its tools should stay strong if semiconductor capex continues to rise. Lam Research Corp (LRCX): Increasing Dependence on Essential Chip Manufacturing
• Neutral Sentiment: One bullish article argues Lam Research is still a buy because of its wide moat and leadership position, but it also warns that the stock is trading at a rich valuation, which may limit near-term upside. Lam Research: A Wide-Moat Equipment Leader That I Rate A Buy – Despite A Rich Valuation
• Negative Sentiment: Recent market commentary noted that LRCX slipped even as the broader market rose, suggesting some investors are taking profits after the stock’s strong move higher. Lam Research (LRCX) Stock Slides as Market Rises: Facts to Know Before You Trade

Analyst Ratings Changes

LRCX has been the subject of a number of recent analyst reports. Stifel Nicolaus raised their price target on shares of Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. TD Cowen raised their price target on shares of Lam Research from $290.00 to $340.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Bank of America raised their price target on shares of Lam Research from $285.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Royal Bank Of Canada raised their price target on shares of Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price target on shares of Lam Research in a report on Thursday, April 23rd. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $303.30.

Lam Research Stock Down 9.8%

The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The stock has a market capitalization of $379.27 billion, a P/E ratio of 57.22, a P/E/G ratio of 2.51 and a beta of 1.85. The stock’s 50 day simple moving average is $273.22 and its 200 day simple moving average is $226.72.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS 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 firm had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.70 billion. During the same period in the prior year, the firm posted $1.04 EPS. The firm’s revenue was up 23.8% compared to the same quarter last year. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, research analysts predict that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Lam Research Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th will be given 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 is Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is presently 19.62%.

Insider Transactions at Lam Research

In other news, insider Ava Harter sold 6,010 shares of Lam Research stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the transaction, the insider directly owned 53,205 shares of the company’s stock, valued at approximately $13,762,005.30. The trade was a 10.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Neil J. Fernandes sold 18,170 shares of the business’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the sale, the senior vice president directly owned 66,129 shares of the company’s stock, valued at approximately $16,872,153.06. This represents a 21.55% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 31,839 shares of company stock worth $8,561,667. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Institutional investors have recently modified their holdings of the business. PMV Capital Advisers LLC bought a new stake in shares of Lam Research during the 4th quarter valued at about $25,000. Stance Capital LLC bought a new stake in shares of Lam Research during the 3rd quarter valued at about $26,000. Bayban bought a new stake in Lam Research in the 4th quarter valued at about $26,000. Vermillion Wealth Management Inc. bought a new stake in Lam Research in the 1st quarter valued at about $26,000. Finally, Cedar Mountain Advisors LLC lifted its position in Lam Research by 242.9% in the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 85 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

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.