Lam Research (NASDAQ:LRCX) Trading Down 1.3% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s share price was down 1.3% on Friday . The stock traded as low as $213.87 and last traded at $217.94. Approximately 9,981,221 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 14,007,093 shares. The stock had previously closed at $220.70.

Lam Research News Roundup

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

• Positive Sentiment: Zacks upgraded LRCX to a Zacks Rank #1 (Strong Buy), a move that typically attracts momentum flows and retail/institutional attention; the upgrade is being cited as a catalyst for optimism about near-term earnings and price momentum. Lam Research (LRCX) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Analyst commentary (Zacks) and coverage notes point to strong AI-chip demand and rising DRAM spending that should help LRCX beat Q2 estimates, supporting upside expectations for revenue and margins. LRCX Likely to Beat Q2 Earnings Estimates: Should You Buy the Stock?
• Positive Sentiment: Media coverage highlights AI-driven momentum (a recent piece notes the stock jumped on AI buzz and tariff news), which can attract short-term buyers and program trades. Why Lam Research (LRCX) Is Up 5.0% After AI Buzz And Tariff Jitters Hit Spotlight
• Neutral Sentiment: New Street raised its price target to $195 (from $140) but kept a “neutral” rating — the higher target signals improving fundamental views, but the maintained neutral limits the endorsement strength for further rallies. New Street Adjusts Lam Research Price Target to $195 From $140; Maintains Neutral Rating
• Neutral Sentiment: High-profile mentions (e.g., Jim Cramer calling LRCX “the best of the best” while warning about buying parabolic moves) can boost credibility but also encourage caution among momentum-sensitive traders. Jim Cramer calls Lam Research the “best of the best” but warns against buying parabolic moves
• Negative Sentiment: Unusually large put-option volume: traders bought ~87,781 puts (about +129% vs. average), a sharp rise in bearish/options-hedging activity that can signal investor risk-off, price protection flows, or speculative bearish bets — all of which can add downward pressure or volatility.
• Negative Sentiment: Relative weakness vs. peers: coverage notes that LRCX underperformed competitors on Thursday, a datapoint traders watch for leadership shifts within the semiconductor equipment group and to gauge rotation risk. Lam Research Corp. stock underperforms Thursday when compared to competitors

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on LRCX. Rothschild & Co Redburn lifted their price target on shares of Lam Research from $150.00 to $225.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Needham & Company LLC reissued a “buy” rating and set a $250.00 price target (up previously from $160.00) on shares of Lam Research in a research report on Tuesday. Hsbc Global Res raised Lam Research to a “hold” rating in a report on Tuesday, September 30th. Royal Bank Of Canada set a $260.00 target price on Lam Research in a research report on Wednesday, January 14th. Finally, BNP Paribas Exane increased their target price on Lam Research from $80.00 to $140.00 and gave the stock a “neutral” rating in a report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $200.52.

Lam Research Stock Down 1.3%

The company has a quick ratio of 1.60, a current ratio of 2.21 and a debt-to-equity ratio of 0.37. The firm has a 50 day moving average of $178.08 and a two-hundred day moving average of $141.58. The firm has a market capitalization of $273.74 billion, a price-to-earnings ratio of 48.00, a price-to-earnings-growth ratio of 2.49 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 EPS for the quarter, topping analysts’ consensus estimates of $1.22 by $0.04. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The firm had revenue of $5.32 billion during the quarter, compared to analysts’ expectations of $5.23 billion. During the same quarter in the prior year, the business earned $0.86 earnings per share. The business’s revenue for the quarter was up 27.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Investors of record on Wednesday, December 3rd were paid a $0.26 dividend. The ex-dividend date of this dividend was Wednesday, December 3rd. This represents a $1.04 annualized dividend and a yield of 0.5%. Lam Research’s dividend payout ratio is presently 22.91%.

Insider Buying and Selling at Lam Research

In other Lam Research news, CFO Douglas R. Bettinger sold 40,080 shares of the business’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the sale, the chief financial officer owned 987,237 shares of the company’s stock, valued at approximately $148,677,892.20. The trade was a 3.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Bethany Mayer sold 1,298 shares of the company’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $159.99, for a total transaction of $207,667.02. Following the transaction, the director owned 1,652 shares of the company’s stock, valued at $264,303.48. This trade represents a 44.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 50,418 shares of company stock worth $7,667,305 over the last quarter. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently made changes to their positions in the company. PMV Capital Advisers LLC bought a new stake in Lam Research during the 4th quarter worth approximately $25,000. Stance Capital LLC acquired a new position in shares of Lam Research during the third quarter worth $26,000. Triumph Capital Management acquired a new position in shares of Lam Research during the third quarter worth $27,000. Harbor Investment Advisory LLC grew its stake in shares of Lam Research by 73.9% in the fourth quarter. Harbor Investment Advisory LLC now owns 240 shares of the semiconductor company’s stock worth $41,000 after purchasing an additional 102 shares during the last quarter. Finally, IMG Wealth Management Inc. acquired a new stake in Lam Research in the second quarter valued at $26,000. 84.61% of the stock is currently 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.