Lam Research (NASDAQ:LRCX) Trading Down 6.2% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s stock price was down 6.2% during trading on Thursday . The company traded as low as $138.30 and last traded at $139.59. Approximately 13,498,962 shares traded hands during mid-day trading, an increase of 14% from the average daily volume of 11,848,491 shares. The stock had previously closed at $148.80.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on LRCX. Wells Fargo & Company lifted their price target on shares of Lam Research from $135.00 to $145.00 and gave the company an “equal weight” rating in a report on Thursday, October 23rd. Rothschild & Co Redburn upped their target price on shares of Lam Research from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, October 14th. Morgan Stanley upped their price objective on Lam Research from $125.00 to $137.00 and gave the stock an “equal weight” rating in a report on Thursday, October 23rd. B. Riley raised their price objective on Lam Research from $160.00 to $175.00 and gave the company a “buy” rating in a research report on Monday, October 20th. Finally, The Goldman Sachs Group increased their price target on Lam Research from $115.00 to $160.00 and gave the company a “buy” rating in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $149.04.

Lam Research Price Performance

The company has a current ratio of 2.21, a quick ratio of 1.60 and a debt-to-equity ratio of 0.37. The company has a 50 day moving average price of $143.18 and a 200 day moving average price of $111.22. The firm has a market cap of $175.33 billion, a PE ratio of 30.75, a price-to-earnings-growth ratio of 1.68 and a beta of 1.87.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.22 by $0.04. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.The firm had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.23 billion. During the same period in the prior year, the firm posted $0.86 earnings per share. The business’s quarterly revenue was up 27.7% compared to the same quarter last year. Lam Research has set its Q2 2026 guidance at 1.050-1.250 EPS. On average, sell-side analysts expect that Lam Research Corporation will post 3.71 EPS for the current year.

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, December 3rd. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. Lam Research’s payout ratio is currently 22.91%.

Insider Activity

In other news, Director Bethany Mayer sold 1,298 shares of the firm’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $159.99, for a total value of $207,667.02. Following the transaction, the director owned 1,652 shares of the company’s stock, valued at approximately $264,303.48. This trade represents a 44.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Vahid Vahedi sold 52,190 shares of the business’s stock in a transaction that occurred on Monday, October 13th. The stock was sold at an average price of $138.90, for a total value of $7,249,191.00. Following the transaction, the senior vice president directly owned 251,047 shares in the company, valued at approximately $34,870,428.30. This trade represents a 17.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 102,608 shares of company stock valued at $14,916,496 in the last quarter. 0.31% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LRCX. Gilliland Jeter Wealth Management LLC boosted its stake in shares of Lam Research by 0.3% in the 3rd quarter. Gilliland Jeter Wealth Management LLC now owns 26,501 shares of the semiconductor company’s stock valued at $3,548,000 after purchasing an additional 69 shares during the last quarter. Gold Investment Management Ltd. boosted its stake in Lam Research by 0.5% in the third quarter. Gold Investment Management Ltd. now owns 14,736 shares of the semiconductor company’s stock valued at $1,973,000 after acquiring an additional 70 shares during the last quarter. Hemington Wealth Management lifted its position in shares of Lam Research by 4.3% during the 3rd quarter. Hemington Wealth Management now owns 1,731 shares of the semiconductor company’s stock valued at $231,000 after buying an additional 72 shares during the last quarter. Magnus Financial Group LLC grew its position in shares of Lam Research by 0.3% in the third quarter. Magnus Financial Group LLC now owns 22,838 shares of the semiconductor company’s stock valued at $3,058,000 after purchasing an additional 76 shares in the last quarter. Finally, Addison Advisors LLC boosted its stake in Lam Research by 2.8% during the third quarter. Addison Advisors LLC now owns 2,857 shares of the semiconductor company’s stock valued at $383,000 after buying an additional 77 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.