Lam Research (NASDAQ:LRCX) Stock Price Down 5.2% – What’s Next?
by Kim Johansen · The Markets DailyShares of Lam Research Corporation (NASDAQ:LRCX – Get Free Report) traded down 5.2% during trading on Friday . The company traded as low as $301.05 and last traded at $301.90. 8,031,562 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 11,045,705 shares. The stock had previously closed at $318.58.
Key Lam Research News
Here are the key news stories impacting Lam Research this week:
- Positive Sentiment: Lam Research broke ground on a 120,000-square-foot Oregon laboratory as the first step in a planned investment of more than $3 billion in its global lab network over five years. The facility is intended to support collaboration with chipmakers and accelerate semiconductor equipment development for advanced AI chips. Lam Research breaks ground on AI semiconductor lab in Oregon
- Positive Sentiment: The board approved a 27% increase in the quarterly dividend, raising it from $0.26 to $0.33 per share. The dividend is payable October 14 to shareholders of record September 23, modestly improving shareholder returns and signaling confidence in cash generation. Lam Research Corporation Announces a 27% Increase in Quarterly Dividend
- Neutral Sentiment: Lam Research is preparing for the November 2 retirement of directors Michael R. Cannon and Sohail U. Ahmed. The planned governance transition could refresh the board, but investors may initially monitor its effect on oversight and strategy. Lam Research Announces Retirement of Michael R. Cannon and Sohail U. Ahmed from Board of Directors
- Neutral Sentiment: Lam’s latest earnings exceeded expectations, with adjusted earnings of $1.82 per share and revenue of $6.72 billion, while revenue grew 30% year over year. Analysts continue to see upside, with a reported median price target of $375, although Mizuho recently lowered its target to $365. Why Is Lam Research Up Since Its Last Earnings Report?
- Negative Sentiment: Investors are increasingly focused on China-related tariffs, export restrictions and geopolitical risk. China was Lam’s largest geographic market in fiscal 2026, leaving the company particularly exposed to any deterioration in U.S.-China semiconductor trade policy. Lam Research Slides as China Trade Risk Appears to Outweigh Dividend Hike
- Negative Sentiment: Reported insider-trading data shows substantial open-market selling by executives and directors, with no purchases during the past six months. While such sales may reflect compensation or diversification, the pattern can weigh on sentiment.
Wall Street Analysts Forecast Growth
LRCX has been the topic of several recent research reports. TD Cowen reiterated a “buy” rating and issued a $400.00 price objective (up from $340.00) on shares of Lam Research in a research note on Thursday, July 9th. Morgan Stanley decreased their target price on Lam Research from $404.00 to $367.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Sanford C. Bernstein raised their price objective on Lam Research from $325.00 to $340.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Seaport Research Partners began coverage on Lam Research in a report on Monday, May 4th. They set a “buy” rating and a $300.00 price target on the stock. Finally, Wells Fargo & Company reissued an “overweight” rating and issued a $350.00 price target (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. 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’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $357.31.
Lam Research Trading Down 5.2%
The company has a 50-day moving average price of $332.17 and a 200 day moving average price of $289.05. 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 has a market capitalization of $377.77 billion, a P/E ratio of 52.41, a price-to-earnings-growth ratio of 1.24 and a beta of 1.84.
Lam Research (NASDAQ:LRCX – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.13. The business 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 business’s revenue for the quarter was up 30.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, research analysts forecast that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.
Lam Research Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be given a dividend of $0.33 per share. The ex-dividend date 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 yield of 0.4%. Lam Research’s dividend payout ratio (DPR) is 18.06%.
Insiders Place Their Bets
In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director directly owned 87,142 shares in the company, valued at approximately $29,192,570. The trade was a 17.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of Lam Research stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $309.60, for a total value of $2,371,226.40. Following the completion of the transaction, the senior vice president directly owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. This represents a 11.58% decrease in their ownership of the stock. 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. Insiders have sold 80,441 shares of company stock valued at $27,614,296 over the last ninety days. Company insiders own 0.31% of the company’s stock.
Institutional Inflows and Outflows
Large investors have recently modified their holdings of the stock. California State Teachers Retirement System increased its position in Lam Research by 42,619.5% during the second quarter. California State Teachers Retirement System now owns 821,470,614 shares of the semiconductor company’s stock worth $355,967,861,000 after buying an additional 819,547,672 shares during the period. State Street Corp grew its holdings in Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock valued at $8,024,684,000 after buying an additional 265,805 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Lam Research by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 33,747,368 shares of the semiconductor company’s stock valued at $5,764,117,000 after buying an additional 126,613 shares during the last quarter. Invesco Ltd. grew its holdings in Lam Research by 7.7% in the 4th quarter. Invesco Ltd. now owns 22,821,354 shares of the semiconductor company’s stock valued at $3,906,559,000 after buying an additional 1,638,406 shares during the period. Finally, Norges Bank acquired a new stake in Lam Research during the fourth quarter worth about $3,645,427,000. Institutional investors and hedge funds 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.