Lam Research (NASDAQ:LRCX) Stock Price Down 4.6% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX)’s share price dropped 4.6% during mid-day trading on Tuesday . The stock traded as low as $317.41 and last traded at $327.92. 10,192,976 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 11,229,070 shares. The stock had previously closed at $343.84.

Analyst Ratings Changes

A number of equities research analysts have recently commented on LRCX shares. Wall Street Zen cut shares of Lam Research from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. TD Cowen restated a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Raymond James Financial set a $425.00 price objective on Lam Research in a research report on Wednesday, June 10th. Stifel Nicolaus lifted their target price on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Finally, New Street Research boosted their price target on Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Lam Research has a consensus rating of “Moderate Buy” and a consensus price target of $358.47.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.63 and a quick ratio of 1.91. The business’s 50 day moving average price is $339.85 and its 200 day moving average price is $284.31. The stock has a market capitalization of $410.53 billion, a P/E ratio of 56.96, a price-to-earnings-growth ratio of 1.32 and a beta of 1.84.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data 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. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. During the same quarter in the prior year, the firm earned $1.33 earnings per share. The firm’s revenue for the quarter was up 30.0% compared to the same quarter last year. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Sell-side analysts forecast that Lam Research Corporation will post 9.32 EPS for the current year.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th were issued a $0.26 dividend. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research’s payout ratio is presently 18.06%.

Insider Activity at Lam Research

In other Lam Research news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the sale, the director directly owned 199,205 shares of the company’s stock, valued at $69,881,114. The trade was a 21.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 80,441 shares of company stock worth $27,614,296. 0.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Lam Research

A number of institutional investors and hedge funds have recently made changes to their positions in LRCX. Norges Bank purchased a new position in shares of Lam Research during the 4th quarter worth $3,645,427,000. Price T Rowe Associates Inc. MD increased its stake in shares of Lam Research by 352.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock worth $2,344,347,000 after purchasing an additional 10,666,540 shares in the last quarter. Bank of New York Mellon Corp bought a new position in Lam Research in the 2nd quarter worth $3,777,585,000. Franklin Resources Inc. lifted its position in Lam Research by 57.0% during the fourth quarter. Franklin Resources Inc. now owns 10,110,560 shares of the semiconductor company’s stock valued at $1,730,724,000 after purchasing an additional 3,671,073 shares in the last quarter. Finally, Corient Private Wealth LLC lifted its position in Lam Research by 235.5% during the fourth quarter. Corient Private Wealth LLC now owns 5,199,441 shares of the semiconductor company’s stock valued at $890,040,000 after purchasing an additional 3,649,553 shares in the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.