Lam Research (NASDAQ:LRCX) Shares Down 4.8% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) shares dropped 4.8% during trading on Friday . The stock traded as low as $276.48 and last traded at $284.72. Approximately 9,538,491 shares traded hands during trading, a decline of 14% from the average daily volume of 11,030,606 shares. The stock had previously closed at $299.15.

More Lam Research News

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

• Positive Sentiment: Lam Research is benefiting from AI-driven demand for semiconductor manufacturing equipment, with reports citing record quarterly revenue and EPS, along with expanding margins. Lam Research Rides AI Boom With Record Results And Margin Expansion
• Positive Sentiment: Management reportedly lifted its outlook for wafer fabrication equipment spending and advanced packaging revenue, reinforcing expectations for continued growth tied to AI infrastructure. Why Lam Research (LRCX) Is Levered to AI-Driven Wafer Fab and Packaging Spending
• Positive Sentiment: Wall Street sentiment remains constructive, with multiple reports pointing to bullish analyst views and higher price targets after the company topped estimates and reached record stock levels. Lam Research (LRCX) Stock Surges Past $300 Milestone as Wall Street Boosts Price Targets
• Neutral Sentiment: Several articles focused on Lam Research’s long-term investment appeal and why investors favor the stock, which adds to the positive narrative but does not appear to introduce new catalysts. If You Invested $1000 in Lam Research a Decade Ago, This is How Much It’d Be Worth Now
• Neutral Sentiment: Conference-participation news may keep Lam Research visible to investors, but it is not likely to move the stock on its own. Lam Research Corporation Announces Participation at Upcoming Conferences

Wall Street Analyst Weigh In

LRCX has been the subject of several analyst reports. HSBC increased their price objective on Lam Research from $221.00 to $247.00 and gave the company a “hold” rating in a report on Friday, April 24th. Citigroup reissued a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of Lam Research in a research report on Thursday, April 23rd. Seaport Research Partners assumed coverage on Lam Research in a research report on Monday, May 4th. They issued a “buy” rating and a $300.00 target price on the stock. Berenberg Bank upped their target price on Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Finally, Erste Group Bank downgraded Lam Research from a “buy” rating to a “hold” rating in a research report on Thursday, April 2nd. Twenty-six equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average target price of $291.75.

Lam Research Stock Performance

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 firm has a 50-day moving average of $246.23 and a 200-day moving average of $210.73. The stock has a market capitalization of $356.06 billion, a price-to-earnings ratio of 53.72, a P/E/G ratio of 2.36 and a beta of 1.81.

Lam Research (NASDAQ:LRCX) last released its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.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 earned $1.04 EPS. The firm’s revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, sell-side analysts predict that Lam Research Corporation will post 5.67 earnings per share for the current year.

Insiders Place Their Bets

In other Lam Research news, insider Ava Harter sold 6,010 shares of the stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $258.66, for a total transaction of $1,554,546.60. Following the sale, the insider directly owned 53,205 shares of the company’s stock, valued at approximately $13,762,005.30. This trade represents a 10.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the sale, the chief financial officer directly owned 1,081,705 shares in the company, valued at $242,334,371.15. This represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 120,066 shares of company stock valued at $27,953,242. Company insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GSG Advisors LLC grew its position in Lam Research by 3.1% during the 1st quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock worth $296,000 after purchasing an additional 42 shares during the period. Valued Wealth Advisors LLC grew its position in Lam Research by 7.9% during the 1st quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company’s stock worth $126,000 after purchasing an additional 43 shares during the period. Greenup Street Wealth Management LLC grew its position in Lam Research by 1.8% during the 1st quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company’s stock worth $520,000 after purchasing an additional 44 shares during the period. Triumph Capital Management grew its position in Lam Research by 22.5% during the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 45 shares during the period. Finally, Traphagen Investment Advisors LLC grew its position in Lam Research by 2.4% during the 4th quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock worth $336,000 after purchasing an additional 46 shares during the period. 84.61% of the stock is 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.