Lam Research (NASDAQ:LRCX) Shares Down 7.2% After Insider Selling

Lam Research Corporation (NASDAQ:LRCX)’s stock price traded down 7.2% on Friday after an insider sold shares in the company. The stock traded as low as $198.45 and last traded at $199.33. 13,387,498 shares were traded during mid-day trading, an increase of 9% from the average session volume of 12,236,443 shares. The stock had previously closed at $214.68.

Specifically, insider Ava Harter sold 1,500 shares of the firm’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $222.66, for a total transaction of $333,990.00. Following the sale, the insider owned 53,205 shares of the company’s stock, valued at approximately $11,846,625.30. This trade represents a 2.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction dated 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 completion of the sale, the chief financial officer owned 1,081,705 shares of the company’s stock, valued at $242,334,371.15. This trade represents a 4.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, insider Ava Harter sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $232.50, for a total value of $930,000.00. Following the completion of the transaction, the insider directly owned 54,705 shares in the company, valued at approximately $12,718,912.50. The trade was a 6.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. HSBC raised their target price on shares of Lam Research from $181.00 to $221.00 and gave the stock a “hold” rating in a report on Friday, January 30th. Oppenheimer reaffirmed an “outperform” rating and issued a $265.00 target price on shares of Lam Research in a research note on Thursday, January 29th. KeyCorp reissued a “sector weight” rating on shares of Lam Research in a research note on Thursday, January 29th. Wells Fargo & Company upped their price objective on Lam Research from $250.00 to $290.00 and gave the stock an “overweight” rating in a research report on Thursday, January 29th. Finally, Argus increased their price objective on Lam Research from $175.00 to $280.00 in a report on Tuesday, February 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Lam Research currently has a consensus rating of “Moderate Buy” and a consensus price target of $245.19.

Trending Headlines about Lam Research

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

• Positive Sentiment: Wall‑Street price‑target consensus implies ~25% upside, supporting a constructive forward view driven by earnings‑estimate revisions and sustained foundry/AI demand. Read More.
• Positive Sentiment: Technicals are supportive in the short term — LRCX recently crossed above its 50‑day moving average and hit an intraday high after a trading signal, which can attract momentum buyers. Read More. Read More.
• Positive Sentiment: Fundamental backdrop remains solid: recent quarterly beat, strong margins and exposure to wafer‑processing demand for AI/advanced nodes underpin the longer‑term bull case and institutional interest. Read More.
• Neutral Sentiment: Media roundups and “too late to buy?” coverage are raising visibility and debate over valuation after a large multi‑quarter run; useful context but not an immediate catalyst. Read More. Read More.
• Negative Sentiment: Large insider selling is a clear near‑term negative for sentiment — CFO Douglas Bettinger sold ~50,057 shares (~$11M) and other insiders (including Ava Harter) reported additional sales; investors often interpret big, clustered sales as a signal to reduce exposure even if trades are for diversification or tax planning. Read More. Read More.
• Negative Sentiment: Sectorwide risk from geopolitics and rising energy costs: reports flag higher operating costs for customer fabs and potential supply‑chain disruptions for critical chipmaking materials — these near‑term worries have been a primary driver of the recent pullback. Read More. Read More.

Lam Research Trading Down 7.2%

The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.61. The business has a 50-day simple moving average of $220.52 and a two-hundred day simple moving average of $168.05. The stock has a market cap of $248.92 billion, a price-to-earnings ratio of 40.85, a P/E/G ratio of 2.40 and a beta of 1.77.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.17 by $0.10. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The company had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the previous year, the company posted $0.91 EPS. The firm’s revenue for the quarter was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. Equities analysts forecast that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 4th will be given a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.04 annualized dividend and a dividend yield of 0.5%. Lam Research’s dividend payout ratio is presently 21.31%.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently modified their holdings of the stock. PMV Capital Advisers LLC bought a new position in shares of Lam Research during the fourth quarter worth approximately $25,000. Stance Capital LLC bought a new position in Lam Research during the 3rd quarter worth $26,000. Bayban bought a new position in Lam Research during the 4th quarter worth $26,000. Howard Hughes Medical Institute acquired a new stake in shares of Lam Research during the second quarter worth $27,000. Finally, Triumph Capital Management bought a new stake in shares of Lam Research in the third quarter valued at about $27,000. Institutional investors own 84.61% of the company’s stock.

About Lam Research

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.