Lam Research (NASDAQ:LRCX) Shares Down 2.7% – Should You Sell?

Shares of Lam Research Corporation (NASDAQ:LRCX) dropped 2.7% during mid-day trading on Tuesday. The company traded as low as $290.90 and last traded at $301.11. Approximately 8,143,273 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 10,660,307 shares. The stock had previously closed at $309.56.

Key Lam Research News

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

• Positive Sentiment: DBS Bank raised its price target to $416, signaling continued confidence in Lam Research’s growth outlook. DBS Bank lifts target to USD 416 for Lam Research stock
• Positive Sentiment: Erste Group Bank increased its earnings forecasts, raising projected FY2027 EPS to $9.40 from $9.34 and FY2028 EPS to $11.99 from $11.68. Other recent analyst targets have generally remained well above the current trading level, with Quiver Quantitative reporting a six-month median target of $387.50. Lam Research analyst estimates
• Positive Sentiment: Analysts continue to anticipate strong results and guidance. UBS identified Lam Research among semiconductor companies likely to post solid results, while a Seeking Alpha analysis characterized the company’s FY2027 setup as attractive ahead of its next quarterly report. Lam’s latest quarter featured record revenue, margins and EPS, with management guiding to another strong quarter.
• Neutral Sentiment: Lam Research is scheduled to hold its next quarterly financial conference call on October 21. Investors may remain cautious ahead of that update, particularly because the company is closely tied to wafer-fabrication spending and the broader AI semiconductor cycle. Why Lam Research stock is down today
• Negative Sentiment: Semiconductor-equipment shares are broadly declining as investors lock in gains after a powerful year fueled by AI spending. Applied Materials and KLA also fell, suggesting sector-wide valuation and risk concerns are weighing on LRCX rather than a Lam-specific operational problem. Semiconductor equipment stocks slide as investors take profits
• Negative Sentiment: Reported insider activity has consisted entirely of sales over the past six months, including transactions by senior executives. Although such sales may reflect diversification or scheduled transactions, they can add to short-term investor caution.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on LRCX shares. Susquehanna reaffirmed a “positive” rating and set a $475.00 price target (up from $385.00) on shares of Lam Research in a research report on Tuesday, June 30th. Fundamental Research set a $390.00 target price on shares of Lam Research in a research report on Thursday, October 1st. Bank of America raised their target price on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. B. Riley Financial lifted their price target on shares of Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a research report on Thursday, October 1st. Finally, Cantor Fitzgerald set a $500.00 price target on Lam Research and gave the stock an “overweight” rating in a research report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $364.59.

Lam Research Stock Performance

The firm has a market capitalization of $376.82 billion, a price-to-earnings ratio of 52.28, a PEG ratio of 1.26 and a beta of 1.85. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. The stock’s 50-day moving average is $311.28 and its 200-day moving average is $306.87.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. The firm had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company’s quarterly revenue was up 30.0% on a year-over-year basis. During the same quarter last year, the business posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, analysts predict that Lam Research Corporation will post 9.34 EPS for the current fiscal year.

Lam Research Increases Dividend

The company also recently disclosed 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 is a positive change from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $1.32 annualized dividend and a dividend yield of 0.4%. Lam Research’s dividend payout ratio (DPR) is 22.92%.

Insiders Place Their Bets

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the transaction, the director owned 20,995 shares of the company’s stock, valued at $6,607,966.30. This represents a 31.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Ava Harter sold 5,000 shares of the 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 transaction, the insider owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This represents a 10.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Paladin Partners LLC bought a new position in Lam Research during the 2nd quarter worth approximately $26,000. Dakota Community Bank & Trust NA bought a new stake in shares of Lam Research in the 3rd quarter valued at $33,000. Quintet Private Bank Europe S.A. increased its position in shares of Lam Research by 100.0% during the third quarter. Quintet Private Bank Europe S.A. now owns 100 shares of the semiconductor company’s stock worth $33,000 after buying an additional 50 shares during the period. Bravera Wealth acquired a new stake in shares of Lam Research during the second quarter worth $46,000. Finally, Cedar Mountain Advisors LLC raised its stake in Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after buying an additional 85 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Lam Research

Lam Research Corporation is a semiconductor equipment company that designs, manufactures, and services systems used in the fabrication of integrated circuits and other electronic devices. Its equipment supports key steps in the wafer manufacturing process, helping semiconductor producers create increasingly small and complex features on silicon wafers.

The company’s portfolio includes systems for etch, deposition, wafer cleaning, surface preparation, and related manufacturing processes.