Lam Research (NASDAQ:LRCX) Shares Down 5.9% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) traded down 5.9% on Friday . The stock traded as low as $232.00 and last traded at $233.46. 18,140,935 shares were traded during trading, an increase of 28% from the average session volume of 14,174,858 shares. The stock had previously closed at $248.17.

Trending Headlines about Lam Research

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

• Positive Sentiment: Multiple major brokers sharply raised targets (many to $275–$300), signaling broad analyst bullishness after the quarter and suggesting upside versus earlier prices. These Analysts Boost Their Forecasts On Lam Research Following Strong Q2 Results
• Positive Sentiment: JPMorgan and Citigroup raised targets to $300 (overweight/buy), and firms including Needham, TD Cowen, Wells Fargo, Deutsche and Stifel also lifted targets — a strong institutional vote of confidence for continued AI/foundry-driven demand. Analyst target increases (Benzinga)
• Positive Sentiment: Lam beat Q2 estimates (EPS $1.27 vs. $1.17 est.; revenue $5.34B vs. $5.23B) and issued Q3 EPS guidance of $1.25–$1.45 and revenue above consensus — concrete operational drivers behind analyst upgrades. Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
• Neutral Sentiment: New Street Research raised its target to $235 but kept a neutral rating, reflecting near-term upside limited relative to recent price strength. New Street adjusts price target on Lam Research to $235
• Negative Sentiment: HSBC raised its target to $221 but maintained a “hold,” which implies downside from recent levels and highlights some analyst caution despite better results. HSBC adjusts price target on Lam Research to $221
• Negative Sentiment: Coverage notes flag valuation concerns after a large run (high P/E and steep analyst target dispersion), which may limit further upside and explains some profit‑taking. Lam Research Earnings Beat Highlights AI Demand But Raises Valuation Questions

Analyst Ratings Changes

A number of research analysts recently weighed in on LRCX shares. Wall Street Zen lowered shares of Lam Research from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Bank of America lifted their price objective on shares of Lam Research from $195.00 to $245.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Barclays set a $250.00 target price on shares of Lam Research in a report on Thursday. Summit Insights raised shares of Lam Research from a “hold” rating to a “buy” rating in a report on Thursday. Finally, Sanford C. Bernstein set a $275.00 price objective on Lam Research in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $238.32.

Lam Research Price Performance

The firm has a market capitalization of $293.23 billion, a P/E ratio of 47.84, a P/E/G ratio of 3.03 and a beta of 1.77. The stock’s 50 day simple moving average is $185.48 and its 200 day simple moving average is $145.09. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.60 and a current ratio of 2.21.

Lam Research (NASDAQ:LRCX) last announced its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.10. The company had revenue of $5.34 billion for the quarter, compared to analysts’ expectations of $5.23 billion. Lam Research had a return on equity of 63.28% and a net margin of 30.22%.Lam Research’s revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.91 earnings per share. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. As a group, analysts expect that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd were issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Wednesday, December 3rd. Lam Research’s dividend payout ratio (DPR) is currently 21.31%.

Insider Activity at Lam Research

In related news, CFO Douglas R. Bettinger sold 40,080 shares of the company’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the transaction, the chief financial officer directly owned 987,237 shares of the company’s stock, valued at $148,677,892.20. This represents a 3.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Bethany Mayer sold 1,298 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $159.99, for a total transaction of $207,667.02. Following the transaction, the director owned 1,652 shares in the company, valued at approximately $264,303.48. This trade represents a 44.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 41,408 shares of company stock valued at $6,248,501. 0.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of LRCX. Sigma Planning Corp lifted its stake in Lam Research by 26.1% in the 4th quarter. Sigma Planning Corp now owns 26,233 shares of the semiconductor company’s stock valued at $4,513,000 after buying an additional 5,424 shares in the last quarter. New York State Teachers Retirement System raised its holdings in shares of Lam Research by 0.7% during the fourth quarter. New York State Teachers Retirement System now owns 1,074,442 shares of the semiconductor company’s stock valued at $183,923,000 after acquiring an additional 6,996 shares during the last quarter. North Star Investment Management Corp. lifted its position in shares of Lam Research by 30.0% in the fourth quarter. North Star Investment Management Corp. now owns 334 shares of the semiconductor company’s stock valued at $57,000 after acquiring an additional 77 shares in the last quarter. Activest Wealth Management boosted its stake in shares of Lam Research by 123.7% in the fourth quarter. Activest Wealth Management now owns 1,568 shares of the semiconductor company’s stock worth $268,000 after acquiring an additional 867 shares during the last quarter. Finally, Laurel Wealth Advisors LLC purchased a new stake in shares of Lam Research during the fourth quarter worth approximately $88,000. 84.61% of the stock is owned by institutional investors and hedge funds.

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.