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

Lam Research Corporation (NASDAQ:LRCX)’s share price gapped down prior to trading on Monday . The stock had previously closed at $298.22, but opened at $275.00. Lam Research shares last traded at $278.8740, with a volume of 1,428,119 shares.

Trending Headlines about Lam Research

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

• Positive Sentiment: Bulten AB subsidiary Exim secured a strategic supply agreement in Asia involving Lam Research. While the financial impact on Lam was not disclosed, the deal may support the company’s supply chain and regional equipment activity. Bulten subsidiary Exim wins strategic Lam Research supply deal in Asia
• Neutral Sentiment: Lam Research has pulled back to a historically supportive trendline after losing 16.6% over the past week. The technical level could attract buyers, but a breakdown would signal continued weakness. Chipmaker pulls back to key supportive trendline
• Neutral Sentiment: Analysis comparing Lam Research with Applied Materials suggests both companies benefited from the AI-driven semiconductor capital-spending cycle, while their sensitivity to ASML and accelerating extreme-ultraviolet adoption differs. This highlights potential differences in long-term positioning rather than a specific new catalyst for Lam. Lam Research versus Applied Materials analysis
• Negative Sentiment: Chip-equipment shares, including Lam Research, Applied Materials and ASML, sold off sharply as investors questioned whether AI demand is translating into sustainable fab-spending growth at the expected pace. The sector-wide move indicates that macro and valuation concerns are outweighing Lam’s recent earnings momentum. Chip equipment stocks slide as AI spending concerns reach fab spending
• Negative Sentiment: Lam Research declined more than the broader market in the latest session, reflecting continued profit-taking and investor caution following the recent semiconductor-equipment selloff. Lam Research sees a more significant dip than broader market

Analyst Ratings Changes

LRCX has been the subject of a number of recent analyst reports. HSBC reaffirmed a “hold” rating and issued a $333.00 price objective on shares of Lam Research in a research note on Monday, July 27th. UBS Group cut their price objective on shares of Lam Research from $435.00 to $425.00 and set a “buy” rating for the company in a report on Tuesday, September 1st. Sanford C. Bernstein lifted their price objective on shares of Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $320.00 target price on shares of Lam Research in a report on Thursday, July 30th. Finally, Evercore reaffirmed an “outperform” rating and set a $355.00 target price on shares of Lam Research in a research note on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $361.81.

Lam Research Trading Down 1.0%

The stock’s 50 day moving average is $310.74 and its 200-day moving average is $294.54. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The company has a market cap of $338.95 billion, a PE ratio of 47.03, a P/E/G ratio of 1.08 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The company had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter last year, the business posted $1.33 earnings per share. The firm’s revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, sell-side analysts anticipate that Lam Research Corporation will post 9.33 EPS for the current year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 0.5%. The ex-dividend date is Wednesday, September 23rd. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is currently 18.06%.

Insiders Place Their Bets

In other news, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the sale, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the transaction, the director owned 20,995 shares in the company, valued at $6,607,966.30. The trade was a 31.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 32,839 shares of company stock valued at $10,644,740 over the last three months. 0.31% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LRCX. Smith Chas P & Associates PA Cpas bought a new stake in shares of Lam Research during the 2nd quarter worth approximately $280,000. Talon Private Wealth LLC bought a new position in Lam Research in the 2nd quarter valued at $1,081,000. Bouchey Financial Group Ltd. increased its stake in Lam Research by 14.6% in the second quarter. Bouchey Financial Group Ltd. now owns 2,224 shares of the semiconductor company’s stock worth $964,000 after purchasing an additional 284 shares during the period. Core Capital Management & Research inc. bought a new stake in shares of Lam Research during the second quarter worth $65,000. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Lam Research by 16.8% during the second quarter. The Manufacturers Life Insurance Company now owns 964,364 shares of the semiconductor company’s stock valued at $417,888,000 after purchasing an additional 138,754 shares during the period. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.