Lam Research (NASDAQ:LRCX) Shares Down 1.8% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) shares fell 1.8% on Tuesday . The company traded as low as $256.71 and last traded at $258.37. 7,777,572 shares traded hands during trading, a decline of 31% from the average session volume of 11,318,113 shares. The stock had previously closed at $263.16.

Lam Research News Roundup

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

• Positive Sentiment: Q3 results beat: Lam reported $1.47 GAAP/non‑GAAP EPS and $5.84B revenue (up ~24% Y/Y), with Q4 EPS guidance of $1.50–1.80 and revenue guidance roughly $6.2B–$7.0B (midpoint ~$6.6B) — guidance topped Street expectations and is the main fundamental driver behind the rally. Read More.
• Positive Sentiment: Analyst upgrades/price-target increases: Dozens of firms raised targets (examples: JPMorgan to $315, Susquehanna to $385, Berenberg to $335, Bernstein/Jefferies/Stifel/TD Cowen and others), reflecting conviction in a multi‑year wafer‑fab equipment (WFE) upcycle driven by AI. This analyst momentum supports further upside expectations. Read More.
• Positive Sentiment: AI and memory demand tailwinds: Coverage and industry analysts emphasize strong AI-driven capacity additions and memory demand that lift equipment spend (supporting Lam’s strong support sales and revenue expansion). This is the structural story underpinning upgrades. Read More.
• Positive Sentiment: Broader industry bull case: Analysts and commentators argue DRAM and memory pricing/production could accelerate, which would raise WFE spending further — a positive macro for equipment suppliers like Lam. Read More.
• Neutral Sentiment: Detailed metrics and read‑throughs: Multiple post‑earnings writeups (Zacks, Seeking Alpha transcripts, slide deck) give granular data on margins, support sales, and inventory trends — useful for sizing durability but not immediate catalysts. Read More.
• Negative Sentiment: Valuation concerns and profit‑taking: Some analysts/commentary warn that enthusiasm may have run ahead of fundamentals and that the stock’s rally makes LRCX look expensive — this narrative likely pressured the stock after the initial pop. Read More.
• Negative Sentiment: “Earnings test” after a sharp run: Coverage notes the stock faced an earnings-test following a big pre‑earnings rally — short‑term volatility and rotation can follow even strong prints. Read More.

Analyst Ratings Changes

A number of research firms have weighed in on LRCX. Evercore lifted their price target on shares of Lam Research from $275.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday. HSBC boosted their target price on shares of Lam Research from $181.00 to $221.00 and gave the company a “hold” rating in a research note on Friday, January 30th. Citigroup restated a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of Lam Research in a research note on Thursday. Summit Insights upgraded shares of Lam Research from a “hold” rating to a “buy” rating in a research note on Thursday, January 29th. Finally, KeyCorp restated a “sector weight” rating on shares of Lam Research in a research note on Thursday, January 29th. Twenty-seven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and an average target price of $276.10.

Lam Research Price Performance

The stock has a fifty day moving average of $233.80 and a 200-day moving average of $196.58. The company has a quick ratio of 1.61, a current ratio of 2.26 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $322.88 billion, a P/E ratio of 52.98, a PEG ratio of 2.75 and a beta of 1.78.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.11. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The business had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.70 billion. During the same period in the previous year, the business posted $1.04 earnings per share. The firm’s revenue for the quarter 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. Equities analysts predict that Lam Research Corporation will post 5.3 EPS for the current fiscal year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Wednesday, March 4th. Lam Research’s payout ratio is currently 21.31%.

Insiders Place Their Bets

In other news, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the completion of the sale, the chief financial officer owned 1,081,705 shares in the company, valued at $242,334,371.15. The trade was a 4.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Ava Harter sold 1,500 shares of Lam Research stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $222.66, for a total transaction of $333,990.00. Following the sale, the insider owned 53,205 shares of the company’s stock, valued at approximately $11,846,625.30. This represents a 2.74% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 130,886 shares of company stock valued at $29,658,802. 0.31% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently modified their holdings of LRCX. Lingohr Asset Management GmbH increased its stake in shares of Lam Research by 590.7% in the 3rd quarter. Lingohr Asset Management GmbH now owns 59,555 shares of the semiconductor company’s stock valued at $7,974,000 after acquiring an additional 50,933 shares during the last quarter. Mediolanum International Funds Ltd increased its stake in shares of Lam Research by 52.0% in the 3rd quarter. Mediolanum International Funds Ltd now owns 262,544 shares of the semiconductor company’s stock valued at $34,417,000 after acquiring an additional 89,856 shares during the last quarter. First Citizens Bank & Trust Co. increased its stake in shares of Lam Research by 8.0% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 140,433 shares of the semiconductor company’s stock valued at $18,804,000 after acquiring an additional 10,408 shares during the last quarter. Thoroughbred Financial Services LLC increased its stake in shares of Lam Research by 115.2% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company’s stock valued at $2,972,000 after acquiring an additional 11,883 shares during the last quarter. Finally, Truist Financial Corp increased its stake in Lam Research by 119.6% during the 3rd quarter. Truist Financial Corp now owns 1,676,637 shares of the semiconductor company’s stock worth $224,502,000 after purchasing an additional 913,009 shares in the last quarter. Institutional investors and hedge funds 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.