Lam Research (NASDAQ:LRCX) Trading Down 5% – Should You Sell?

by · The Cerbat Gem

Lam Research Corporation (NASDAQ:LRCX – Get Free Report) fell 5% during trading on Thursday . The stock traded as low as $151.73 and last traded at $153.32. 13,419,952 shares changed hands during mid-day trading, an increase of 14% from the average session volume of 11,818,890 shares. The stock had previously closed at $161.42.

Analyst Ratings Changes

LRCX has been the subject of several analyst reports. Susquehanna increased their price target on shares of Lam Research from $135.00 to $200.00 and gave the company a “positive” rating in a research report on Thursday, October 23rd. Evercore ISI upped their price objective on shares of Lam Research from $115.00 to $170.00 and gave the company an “outperform” rating in a research note on Thursday, October 23rd. Dbs Bank raised their target price on Lam Research from $119.40 to $184.20 in a research note on Monday, October 27th. JPMorgan Chase & Co. upped their price target on Lam Research from $113.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, October 23rd. Finally, Wells Fargo & Company increased their price objective on Lam Research from $135.00 to $145.00 and gave the stock an “equal weight” rating in a report on Thursday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Lam Research has an average rating of “Moderate Buy” and a consensus price target of $149.04.

Read Our Latest Analysis on Lam Research

Lam Research Stock Performance

The company has a 50-day simple moving average of $140.75 and a two-hundred day simple moving average of $109.67. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.60 and a current ratio of 2.21. The firm has a market capitalization of $186.22 billion, a P/E ratio of 32.66, a PEG ratio of 1.68 and a beta of 1.87.

Lam Research (NASDAQ:LRCX – Get Free Report) last announced its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.04. The firm had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.The business’s revenue was up 27.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.86 EPS. Lam Research has set its Q2 2026 guidance at 1.050-1.250 EPS. As a group, equities analysts forecast that Lam Research Corporation will post 3.71 EPS for the current year.

Lam Research Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Wednesday, December 3rd. Lam Research’s payout ratio is 22.91%.

Insider Transactions at Lam Research

In related news, SVP Vahid Vahedi sold 52,190 shares of Lam Research stock in a transaction dated Monday, October 13th. The shares were sold at an average price of $138.90, for a total transaction of $7,249,191.00. Following the completion of the transaction, the senior vice president directly owned 251,047 shares of the company’s stock, valued at $34,870,428.30. This trade represents a 17.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Ava Harter sold 9,010 shares of the company’s stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $157.47, for a total transaction of $1,418,804.70. Following the completion of the sale, the insider owned 56,786 shares in the company, valued at approximately $8,942,091.42. This trade represents a 13.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 62,528 shares of company stock valued at $8,880,448 in the last three months. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

Institutional investors and hedge funds have recently made changes to their positions in the company. IMG Wealth Management Inc. bought a new position in shares of Lam Research during the second quarter valued at $26,000. Howard Hughes Medical Institute bought a new stake in Lam Research in the 2nd quarter worth about $27,000. Strategic Wealth Investment Group LLC purchased a new position in Lam Research in the 2nd quarter worth about $29,000. Delos Wealth Advisors LLC bought a new position in Lam Research during the 2nd quarter valued at about $30,000. Finally, REAP Financial Group LLC purchased a new stake in shares of Lam Research during the 2nd quarter valued at about $31,000. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

(Get Free Report)

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

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