Lam Research (NASDAQ:LRCX) Trading Down 2.6% – Here’s Why
by Teresa Graham · The Cerbat GemLam Research Corporation (NASDAQ:LRCX – Get Free Report) dropped 2.6% during trading on Thursday . The stock traded as low as $253.28 and last traded at $258.56. Approximately 12,216,012 shares were traded during trading, an increase of 8% from the average daily volume of 11,310,494 shares. The stock had previously closed at $265.55.
Key Stories Impacting Lam Research
Here are the key news stories impacting Lam Research this week:
- Positive Sentiment: Q3 results beat expectations — $1.47 EPS vs. $1.36 consensus and revenue $5.84B (up 23.8% y/y); company also issued stronger Q4 guidance (EPS 1.50–1.80, revenue guidance above street). PR Newswire: Q3 Results
- Positive Sentiment: Analysts rushed to raise targets and re‑rate the stock after the print — large firms (JPMorgan, Berenberg, Bernstein, Jefferies, Susquehanna, RBC, TD Cowen and others) lifted price targets into the $300s, reinforcing a multi‑year wafer‑fab equipment (WFE) upcycle thesis. 247wallst: JPMorgan $315 Target
- Positive Sentiment: Industry demand drivers appear structural: analysts and industry commentators point to accelerating AI chip and memory (DRAM) demand that should support multi‑year WFE growth — a tailwind for Lam’s etch/clean/deposition franchises. 247wallst: DRAM Demand Thesis
- Neutral Sentiment: Market write‑ups and earnings summaries (Zacks, MarketBeat, SeekingAlpha transcripts) validate the beat and provide detail on margin expansion and inventory improvements — useful for modeling but not new catalyst by itself. Zacks: Q3 Summary
- Negative Sentiment: Some commentary warns the rally has run ahead of fundamentals — critics highlight stretched valuation (high P/E) and caution that profit taking or a “rally‑test” could follow after the sharp run. Seeking Alpha: Valuation Concerns
Analyst Upgrades and Downgrades
LRCX has been the subject of several recent research reports. Stifel Nicolaus boosted their price objective on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a report on Thursday. Berenberg Bank raised their price objective on shares of Lam Research from $265.00 to $335.00 and gave the company a “buy” rating in a research note on Thursday. Citic Securities raised their price objective on shares of Lam Research from $165.00 to $275.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Zacks Research lowered shares of Lam Research from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a research note on Thursday. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $276.10.
Check Out Our Latest Analysis on Lam Research
Lam Research Trading Down 2.6%
The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.61 and a current ratio of 2.26. The firm has a 50 day simple moving average of $233.80 and a two-hundred day simple moving average of $196.58. The firm has a market capitalization of $322.88 billion, a P/E ratio of 52.98, a PEG ratio of 2.75 and a beta of 1.78.
Lam Research (NASDAQ:LRCX – Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.11. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The business had revenue of $5.84 billion for the quarter, compared to analysts’ expectations of $5.70 billion. During the same period last year, the business earned $1.04 EPS. The business’s revenue was up 23.8% on a year-over-year basis. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. Equities research analysts forecast that Lam Research Corporation will post 5.3 earnings per share for the current year.
Lam Research Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th were given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Wednesday, March 4th. Lam Research’s dividend payout ratio is presently 21.31%.
Insiders Place Their Bets
In other Lam Research news, insider Ava Harter sold 1,500 shares of the company’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $222.66, for a total value of $333,990.00. Following the completion of the sale, the insider directly owned 53,205 shares of the company’s stock, valued at approximately $11,846,625.30. This represents a 2.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value of $11,214,269.71. Following the sale, the chief financial officer owned 1,081,705 shares in the company, valued at $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 130,886 shares of company stock valued at $29,658,802. Corporate insiders own 0.31% of the company’s stock.
Institutional Trading of Lam Research
A number of hedge funds have recently bought and sold shares of LRCX. PMV Capital Advisers LLC bought a new position in Lam Research during the fourth quarter valued at about $25,000. Stance Capital LLC bought a new position in Lam Research during the third quarter valued at about $26,000. Bayban bought a new position in Lam Research during the fourth quarter valued at about $26,000. Vermillion Wealth Management Inc. bought a new position in Lam Research during the first quarter valued at about $26,000. Finally, Triumph Capital Management bought a new position in Lam Research during the third quarter valued at about $27,000. 84.61% of the stock is currently owned by institutional investors.
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.