Lam Research (NASDAQ:LRCX) Trading Down 5.6% After Insider Selling

Shares of Lam Research Corporation (NASDAQ:LRCX) were down 5.6% during mid-day trading on Thursday after an insider sold shares in the company. The company traded as low as $297.01 and last traded at $298.01. 9,831,907 shares changed hands during mid-day trading, a decline of 10% from the average session volume of 10,881,781 shares. The stock had previously closed at $315.84.

Specifically, Director Bethany Mayer sold 9,557 shares of Lam Research 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 completion of the sale, the director owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. The trade was a 31.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Analysts Set New Price Targets

Several research analysts have weighed in on LRCX shares. Raymond James Financial set a $425.00 price target on shares of Lam Research in a report on Wednesday, June 10th. Barclays reaffirmed an “overweight” rating and issued a $335.00 target price (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 17th. Wells Fargo & Company reissued an “overweight” rating and set a $350.00 price target (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. Finally, HSBC restated a “hold” rating and issued a $333.00 price target on shares of Lam Research in a research note on Monday, July 27th. One investment 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. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $361.81.

Trending Headlines about Lam Research

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

• Positive Sentiment: Lam Research is positioned to benefit from the memory-chip investment cycle. Global wafer-fabrication-equipment spending is projected to increase 16.9% to $135.2 billion in 2026, with DRAM and NAND spending supported by demand for HBM, advanced memory and enterprise storage. Lam is described as having the greatest memory exposure among several major equipment suppliers. 3 Chip Equipment Stocks Set to Win the Memory Boom
• Positive Sentiment: The company returned $5.12 billion to shareholders in fiscal 2026 through repurchases and dividends, including a 27% dividend increase. Strong earnings and capital returns may support investor confidence. Lam Research Returns $5B+ to Shareholders in FY26
• Positive Sentiment: Analyst commentary continues to highlight Lam Research’s competitive advantages and long-term positioning, with the company included among wide-moat stocks. Its latest reported quarter also exceeded earnings and revenue expectations, with revenue up 30% year over year.
• Neutral Sentiment: Recent conference and investor-letter coverage points to macroeconomic volatility, inflation concerns and uncertainty surrounding Federal Reserve policy and leadership. These factors could contribute to choppy trading across high-beta technology stocks.
• Neutral Sentiment: Several articles describe clinical studies involving aesthetic surgery, imaging or vein health that appear unrelated to Lam Research’s semiconductor-equipment business and are likely erroneous or misattributed. They do not provide a meaningful investment catalyst for LRCX.
• Negative Sentiment: Director Bethany Mayer sold 9,557 shares for approximately $3.0 million at an average price of $314.74, reducing her ownership by 31.28%. While a single insider sale does not establish a fundamental problem, it can weigh on sentiment and encourage profit-taking.
• Negative Sentiment: The stock also recently underperformed the broader market, suggesting investors may be taking profits or reducing exposure to richly valued semiconductor shares. Lam Research trades at roughly 52 times earnings, leaving the stock sensitive to changes in growth expectations and market risk appetite.

Lam Research Trading Down 5.6%

The company has a market capitalization of $372.91 billion, a price-to-earnings ratio of 51.74, a price-to-earnings-growth ratio of 1.27 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The firm has a fifty day moving average price of $315.51 and a 200-day moving average price of $293.41.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The business had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. During the same quarter in the previous year, the firm earned $1.33 earnings per share. Lam Research’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. As a group, equities analysts anticipate that Lam Research Corporation will post 9.33 EPS for the current year.

Lam Research Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be paid a dividend of $0.33 per share. The ex-dividend date of this dividend is Wednesday, September 23rd. This is a positive change from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.4%. Lam Research’s payout ratio is 18.06%.

Institutional Trading of Lam Research

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in Lam Research by 1,032.4% during the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock worth $1,025,000 after buying an additional 12,936 shares during the period. Caxton Associates LLP acquired a new position in Lam Research in the 1st quarter valued at approximately $239,000. Gabelli Funds LLC bought a new position in shares of Lam Research during the second quarter valued at $253,000. NewEdge Advisors LLC lifted its holdings in shares of Lam Research by 2.7% during the second quarter. NewEdge Advisors LLC now owns 100,528 shares of the semiconductor company’s stock worth $9,785,000 after purchasing an additional 2,661 shares during the period. Finally, Osterweis Capital Management Inc. lifted its holdings in shares of Lam Research by 5,206.7% during the second quarter. Osterweis Capital Management Inc. now owns 796 shares of the semiconductor company’s stock worth $77,000 after purchasing an additional 781 shares during the period. 84.61% of the stock is currently owned by institutional investors.

About Lam Research

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.