Lam Research (NASDAQ:LRCX) Trading Down 9.4% – What’s Next?

Shares of Lam Research Corporation (NASDAQ:LRCX) dropped 9.4% on Thursday . The company traded as low as $211.38 and last traded at $211.62. Approximately 13,409,259 shares traded hands during trading, an increase of 11% from the average daily volume of 12,064,410 shares. The stock had previously closed at $233.45.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on LRCX shares. Summit Insights raised Lam Research from a “hold” rating to a “buy” rating in a report on Thursday, January 29th. Citic Securities upped their price objective on shares of Lam Research from $165.00 to $275.00 and gave the company a “buy” rating in a report on Friday, January 30th. New Street Research increased their price objective on shares of Lam Research from $195.00 to $235.00 and gave the company a “neutral” rating in a research report on Friday, January 30th. UBS Group set a $300.00 target price on shares of Lam Research in a research note on Thursday, January 29th. Finally, Morgan Stanley lifted their target price on shares of Lam Research from $244.00 to $254.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $245.35.

Lam Research Trading Down 9.4%

The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.61. The business’s 50-day moving average is $228.16 and its 200 day moving average is $180.40. The firm has a market capitalization of $264.26 billion, a P/E ratio of 43.36, a price-to-earnings-growth ratio of 2.57 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.10. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The firm had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter in the previous year, the firm posted $0.91 EPS. The business’s revenue for the quarter was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. As a group, analysts anticipate that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th will be paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Wednesday, March 4th. Lam Research’s dividend payout ratio (DPR) is 21.31%.

Insider Buying and Selling at Lam Research

In other news, Director Eric Brandt sold 35,000 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $225.60, for a total transaction of $7,896,000.00. Following the completion of the sale, the director directly owned 253,705 shares in the company, valued at approximately $57,235,848. This represents a 12.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Ava Harter sold 4,000 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $232.50, for a total value of $930,000.00. Following the sale, the insider directly owned 54,705 shares in the company, valued at approximately $12,718,912.50. This trade represents a 6.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 130,886 shares of company stock valued at $29,658,802 in the last three months. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Several hedge funds have recently bought and sold shares of LRCX. PMV Capital Advisers LLC bought a new position in Lam Research in the fourth quarter valued at approximately $25,000. Stance Capital LLC bought a new stake in Lam Research during the third quarter worth $26,000. Bayban bought a new stake in Lam Research during the fourth quarter worth $26,000. Howard Hughes Medical Institute acquired a new stake in shares of Lam Research in the 2nd quarter valued at $27,000. Finally, Triumph Capital Management acquired a new stake in shares of Lam Research in the 3rd quarter valued at $27,000. 84.61% of the stock is owned by institutional investors.

About Lam Research

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.