Lam Research (NASDAQ:LRCX) Stock Price Down 1% – Time to Sell?

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 1% during trading on Wednesday. The stock traded as low as $259.04 and last traded at $260.81. Approximately 14,727,233 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 10,659,812 shares. The stock had previously closed at $263.45.

Key Lam Research News

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

• Positive Sentiment: Lam Research reported fiscal Q1 2027 revenue of $8.22 billion, up 54.4% year over year, and adjusted EPS of $2.20, narrowly exceeding analyst estimates. Operating margin surpassed 40% for the first time, supported by strong systems sales, NAND demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Management expects 2027 wafer-fabrication-equipment spending to exceed $200 billion, driven by artificial-intelligence infrastructure, memory upgrades and advanced-node manufacturing. Analysts including Mizuho, Bank of America and Cantor remain constructive, while Erste Group raised its FY2027 and FY2028 EPS estimates. LRCX Q1 Earnings Call Highlights $200B-Plus WFE Outlook for 2027
• Neutral Sentiment: Lam’s updated fiscal Q2 guidance calls for EPS of $2.18-$2.48 and revenue of $8.2 billion-$9.0 billion, broadly bracketing consensus estimates of $2.30 EPS and $8.5 billion revenue. Mizuho reiterated an Outperform rating but lowered its price target to $360 from $365. Buy pullback in this chip stock, Mizuho says
• Negative Sentiment: Supply-chain bottlenecks and cleanroom capacity limitations are expected to restrict shipments through 2027, limiting how quickly Lam can convert strong demand into revenue. The company also warned that China revenue will decline substantially from its recent 35% contribution, increasing near-term uncertainty. Lam Research retreats amid cautious guidance and China revenue drop
• Negative Sentiment: Citi warned that Lam Research, Applied Materials and KLA could face further downside, while a broader AI-chip sell-off has pressured semiconductor valuations despite solid fundamentals. Several firms have reduced LRCX price targets following the earnings report. The Trouble for Lam Research, Applied Materials, and KLA Stock Could Be Just Getting Started

Analyst Ratings Changes

LRCX has been the subject of several research reports. Susquehanna reissued a “positive” rating and set a $475.00 price objective (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Jefferies Financial Group set a $335.00 target price on Lam Research and gave the company a “buy” rating in a research note on Thursday, July 30th. Morgan Stanley set a $339.00 price target on Lam Research and gave the company an “overweight” rating in a research report on Thursday. B. Riley Financial increased their price target on Lam Research from $350.00 to $390.00 and gave the stock a “buy” rating in a research note on Thursday, October 1st. Finally, Weiss Ratings lowered Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $354.55.

Lam Research Stock Performance

The company’s fifty day moving average is $303.94 and its 200 day moving average is $309.88. The company has a market capitalization of $288.02 billion, a P/E ratio of 39.94, a P/E/G ratio of 0.95 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.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, beating analysts’ consensus estimates of $2.18 by $0.02. Lam Research had a net margin of 32.34% and a return on equity of 76.78%. The business had revenue of $8.22 billion during the quarter, compared to analyst estimates of $8.14 billion. During the same period in the previous year, the business earned $1.26 EPS. Lam Research’s revenue was up 54.4% compared to the same quarter last year. As a group, equities analysts anticipate that Lam Research Corporation will post 9.35 earnings per share for the current year.

Lam Research Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Wednesday, September 23rd. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is presently 22.92%.

Insider Activity

In other news, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction that occurred on 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 directly owned 42,462 shares in the company, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. 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 business’s stock in a transaction that occurred on 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 directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This represents a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Simplicity Wealth LLC boosted its stake in Lam Research by 5.7% during the third quarter. Simplicity Wealth LLC now owns 32,943 shares of the semiconductor company’s stock valued at $10,822,000 after buying an additional 1,785 shares during the period. Kendall Capital Management grew its position in Lam Research by 5.3% during the third quarter. Kendall Capital Management now owns 3,569 shares of the semiconductor company’s stock worth $1,172,000 after buying an additional 179 shares in the last quarter. Evergreen Capital Management LLC increased its stake in Lam Research by 0.9% in the 3rd quarter. Evergreen Capital Management LLC now owns 17,674 shares of the semiconductor company’s stock worth $5,812,000 after acquiring an additional 152 shares during the last quarter. Gibbs Wealth Management increased its stake in Lam Research by 43.0% in the 3rd quarter. Gibbs Wealth Management now owns 3,844 shares of the semiconductor company’s stock worth $1,263,000 after acquiring an additional 1,155 shares during the last quarter. Finally, BRIA Capital Group LLC increased its stake in Lam Research by 13.5% in the 3rd quarter. BRIA Capital Group LLC now owns 4,601 shares of the semiconductor company’s stock worth $1,511,000 after acquiring an additional 548 shares during the last quarter. 84.61% of the stock is owned by institutional investors.

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.