Zacks Research Downgrades Lam Research (NASDAQ:LRCX) to Hold

Lam Research (NASDAQ:LRCX) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday,Zacks.com reports.

LRCX has been the subject of a number of other research reports. Oppenheimer reaffirmed an “outperform” rating and issued a $265.00 price target on shares of Lam Research in a report on Thursday, January 29th. Weiss Ratings reissued a “buy (b)” rating on shares of Lam Research in a research note on Monday, December 29th. Sanford C. Bernstein boosted their target price on shares of Lam Research from $275.00 to $285.00 and gave the company an “outperform” rating in a report on Monday, February 9th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Lam Research from $260.00 to $290.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Finally, Morgan Stanley boosted their target price on shares of Lam Research from $254.00 to $260.00 and gave the company an “equal weight” rating in a report on Monday. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, Lam Research currently has a consensus rating of “Moderate Buy” and an average target price of $245.54.

Lam Research Stock Performance

Shares of NASDAQ:LRCX opened at $224.35 on Monday. The company has a market capitalization of $280.16 billion, a price-to-earnings ratio of 45.97, a PEG ratio of 2.35 and a beta of 1.78. Lam Research has a 12 month low of $58.74 and a 12 month high of $256.68. The firm’s 50-day moving average is $226.69 and its 200 day moving average is $187.12. The company has a current ratio of 2.26, a quick ratio of 1.61 and a debt-to-equity ratio of 0.37.

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

Insider Transactions at Lam Research

In related news, Director Eric Brandt sold 35,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $225.60, for a total value of $7,896,000.00. Following the sale, the director owned 253,705 shares in the company, valued at $57,235,848. This represents a 12.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Douglas R. Bettinger sold 50,057 shares of the company’s stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 1,081,705 shares in the company, valued at approximately $242,334,371.15. This represents a 4.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 130,886 shares of company stock valued at $29,658,802 in the last quarter. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently bought and sold shares of the business. Lingohr Asset Management GmbH raised its holdings in Lam Research by 590.7% in the third quarter. Lingohr Asset Management GmbH now owns 59,555 shares of the semiconductor company’s stock valued at $7,974,000 after acquiring an additional 50,933 shares in the last quarter. Mediolanum International Funds Ltd increased its holdings in shares of Lam Research by 52.0% in the 3rd quarter. Mediolanum International Funds Ltd now owns 262,544 shares of the semiconductor company’s stock worth $34,417,000 after acquiring an additional 89,856 shares during the period. First Citizens Bank & Trust Co. increased its holdings in shares of Lam Research by 8.0% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 140,433 shares of the semiconductor company’s stock worth $18,804,000 after acquiring an additional 10,408 shares during the period. Thoroughbred Financial Services LLC increased its holdings in shares of Lam Research by 115.2% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 22,198 shares of the semiconductor company’s stock worth $2,972,000 after acquiring an additional 11,883 shares during the period. Finally, Oregon Public Employees Retirement Fund increased its holdings in shares of Lam Research by 30.9% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 144,656 shares of the semiconductor company’s stock worth $19,369,000 after acquiring an additional 34,147 shares during the period. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Recent market writeups note LRCX outpaced the market today, reflecting bullish momentum after back‑to‑back beats and continued revenue strength. Why Lam Research (LRCX) Outpaced the Stock Market Today
• Positive Sentiment: Systems revenue growth tied to AI chip demand remains a key growth driver — Zacks highlights a meaningful uptick in systems sales as WFE spending accelerates. AI Boom Aids LRCX’s Systems Revenue Growth
• Positive Sentiment: Profile pieces call LRCX a “Bull of the Day,” citing defensible tech and positioning among top AI‑chip equipment suppliers — supporting investor confidence in longer‑term secular demand. Bull of the Day: Lam Research (LRCX)
• Positive Sentiment: Analyst and hedge‑fund sentiment is skewed bullish: 24 of 28 analysts covering LRCX had Buy/Outperform calls in recent data, reinforcing demand for the stock among discretionary funds. Lam Research (LRCX) Fuels Bullish Sentiment Despite Supply Chain Risks
• Positive Sentiment: Morgan Stanley raised its price target to $260 (from $254) — a sign analysts see upside even as the firm retained an equal‑weight stance. That lift to PT can provide near‑term technical and sentiment support. Morgan Stanley adjusts price target on Lam Research to $260
• Neutral Sentiment: Upcoming catalyst — Lam reports fiscal Q3 2026 results on April 22 after the close. Recent trends (four straight beats) set a high bar; the print will likely drive short‑term volatility. Dear Lam Research Investors, Mark Your Calendars for April 22
• Neutral Sentiment: Longer‑term analyst pieces (e.g., The Motley Fool) debate whether LRCX remains a top buy for multi‑year returns; useful for longer‑horizon investors but less immediately market‑moving. Is Lam Research Stock a Smart Investment for 2025?
• Negative Sentiment: Coverage flags supply‑chain and geopolitical risks that could dampen execution or timing of orders; investors should weigh those risks ahead of the April 22 print. Lam Research (LRCX) Fuels Bullish Sentiment Despite Supply Chain Risks

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.