Lam Research (NASDAQ:LRCX) Stock Price Down 1.3% – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) shares were down 1.3% during trading on Friday . The company traded as low as $213.87 and last traded at $217.94. Approximately 9,981,221 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 14,007,093 shares. The stock had previously closed at $220.70.

Trending Headlines about Lam Research

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

• Positive Sentiment: Zacks upgraded LRCX to a Zacks Rank #1 (Strong Buy), a move that typically attracts momentum flows and retail/institutional attention; the upgrade is being cited as a catalyst for optimism about near-term earnings and price momentum. Lam Research (LRCX) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Analyst commentary (Zacks) and coverage notes point to strong AI-chip demand and rising DRAM spending that should help LRCX beat Q2 estimates, supporting upside expectations for revenue and margins. LRCX Likely to Beat Q2 Earnings Estimates: Should You Buy the Stock?
• Positive Sentiment: Media coverage highlights AI-driven momentum (a recent piece notes the stock jumped on AI buzz and tariff news), which can attract short-term buyers and program trades. Why Lam Research (LRCX) Is Up 5.0% After AI Buzz And Tariff Jitters Hit Spotlight
• Neutral Sentiment: New Street raised its price target to $195 (from $140) but kept a “neutral” rating — the higher target signals improving fundamental views, but the maintained neutral limits the endorsement strength for further rallies. New Street Adjusts Lam Research Price Target to $195 From $140; Maintains Neutral Rating
• Neutral Sentiment: High-profile mentions (e.g., Jim Cramer calling LRCX “the best of the best” while warning about buying parabolic moves) can boost credibility but also encourage caution among momentum-sensitive traders. Jim Cramer calls Lam Research the “best of the best” but warns against buying parabolic moves
• Negative Sentiment: Unusually large put-option volume: traders bought ~87,781 puts (about +129% vs. average), a sharp rise in bearish/options-hedging activity that can signal investor risk-off, price protection flows, or speculative bearish bets — all of which can add downward pressure or volatility.
• Negative Sentiment: Relative weakness vs. peers: coverage notes that LRCX underperformed competitors on Thursday, a datapoint traders watch for leadership shifts within the semiconductor equipment group and to gauge rotation risk. Lam Research Corp. stock underperforms Thursday when compared to competitors

Analyst Upgrades and Downgrades

LRCX has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. raised their price objective on Lam Research from $113.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, October 23rd. Mizuho set a $220.00 price target on Lam Research and gave the company an “outperform” rating in a report on Friday, January 9th. BNP Paribas Exane lifted their price objective on shares of Lam Research from $80.00 to $140.00 and gave the stock a “neutral” rating in a research report on Thursday, October 23rd. Royal Bank Of Canada set a $260.00 price objective on shares of Lam Research in a research report on Wednesday, January 14th. Finally, Zacks Research upgraded shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Lam Research presently has an average rating of “Moderate Buy” and a consensus target price of $200.52.

Lam Research Price Performance

The company has a fifty day simple moving average of $176.68 and a two-hundred day simple moving average of $140.46. The stock has a market capitalization of $273.74 billion, a price-to-earnings ratio of 48.00, a PEG ratio of 2.61 and a beta of 1.77. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.60 and a current ratio of 2.21.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 EPS for the quarter, topping analysts’ consensus estimates of $1.22 by $0.04. The company had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.23 billion. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.Lam Research’s revenue was up 27.7% on a year-over-year basis. During the same quarter last year, the business earned $0.86 earnings per share. As a group, equities research analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Investors of record on Wednesday, December 3rd were paid a $0.26 dividend. The ex-dividend date of this dividend was Wednesday, December 3rd. This represents a $1.04 annualized dividend and a yield of 0.5%. Lam Research’s dividend payout ratio (DPR) is 22.91%.

Insiders Place Their Bets

In related news, CFO Douglas R. Bettinger sold 40,080 shares of Lam Research stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the sale, the chief financial officer directly owned 987,237 shares of the company’s stock, valued at approximately $148,677,892.20. The trade was a 3.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Ava Harter sold 9,010 shares of the company’s stock in a transaction that occurred on Monday, October 27th. The stock was sold at an average price of $157.47, for a total transaction of $1,418,804.70. Following the transaction, the insider owned 56,786 shares of the company’s stock, valued at approximately $8,942,091.42. This represents a 13.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 50,418 shares of company stock valued at $7,667,305. 0.31% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC boosted its position in Lam Research by 1,032.4% during the fourth quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after acquiring an additional 12,936 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Lam Research in the 1st quarter valued at about $239,000. U.S. Capital Wealth Advisors LLC lifted its stake in shares of Lam Research by 3.3% in the 2nd quarter. U.S. Capital Wealth Advisors LLC now owns 6,094 shares of the semiconductor company’s stock valued at $593,000 after purchasing an additional 192 shares during the period. BCS Wealth Management bought a new stake in shares of Lam Research during the 2nd quarter valued at about $258,000. Finally, TD Private Client Wealth LLC grew its stake in Lam Research by 19.9% during the second quarter. TD Private Client Wealth LLC now owns 7,533 shares of the semiconductor company’s stock worth $733,000 after purchasing an additional 1,248 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

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.