Lam Research (NASDAQ:LRCX) Shares Gap Down – What’s Next?

Lam Research Corporation (NASDAQ:LRCX) shares gapped down prior to trading on Tuesday . The stock had previously closed at $350.20, but opened at $322.41. Lam Research shares last traded at $321.6720, with a volume of 2,644,085 shares traded.

Trending Headlines about Lam Research

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

• Positive Sentiment: Goldman Sachs reportedly raised price targets on Lam Research alongside other chip equipment names, helping fuel a broader rally in semiconductor equipment stocks tied to strong AI and memory spending. 2 Chip Stocks Driving Today’s Rally With Lofty Bull Notes
• Positive Sentiment: Morgan Stanley raised its price target on Lam Research to $404 from $331 and kept an overweight rating, signaling continued confidence in the company’s upside potential. Benzinga coverage of Morgan Stanley price target raise
• Positive Sentiment: Cantor Fitzgerald lifted its target on LRCX to $500 from $425 and reiterated an overweight view, citing the AI infrastructure buildout as a key growth driver. Is Lam Research (LRCX) One of the Best Stocks on the Rise to Invest In?
• Positive Sentiment: Susquehanna also boosted its Lam Research price target to $475 from $385 after channel checks pointed to stronger-than-expected spending trends in semiconductor equipment. Susquehanna Lifts PT on Lam Research (LRCX) – Here’s Why
• Neutral Sentiment: Several articles highlighted Lam Research as a long-term winner and a stock to watch ahead of earnings, but these pieces were largely commentary rather than new fundamental developments. Why Lam Research (LRCX) is a Top Stock for the Long-Term
• Negative Sentiment: Some investors remain worried that AI chip demand may be normalizing, and one article said Lam Research’s stock was falling as those fears collided with company guidance and broader weakness in semiconductor equipment shares. Lam Research (LRCX) Stock Falls As AI Demand Fears Clash With Company Guidance
• Negative Sentiment: A separate note from Vltava Fund called Lam Research overvalued, adding a valuation headwind after the stock’s strong performance. Vltava Fund: Lam Research (LRCX) Is Overvalued

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on LRCX shares. JPMorgan Chase & Co. raised their price target on shares of Lam Research from $300.00 to $315.00 and gave the company an “overweight” rating in a research report on Thursday, April 23rd. B. Riley Financial upped their price objective on Lam Research from $350.00 to $375.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. Berenberg Bank lifted their target price on Lam Research from $265.00 to $335.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. Rothschild & Co Redburn boosted their price target on Lam Research from $305.00 to $420.00 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. Finally, Royal Bank Of Canada upped their price target on Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Twenty-eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $347.75.

Lam Research Trading Down 7.5%

The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The stock’s 50-day moving average is $326.35 and its two-hundred day moving average is $258.02. The company has a market cap of $405.15 billion, a P/E ratio of 61.18, a P/E/G ratio of 2.10 and a beta of 1.80.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.11. The business had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.70 billion. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm’s revenue was up 23.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.04 EPS. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. As a group, equities research analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Wednesday, June 17th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.3%. Lam Research’s payout ratio is presently 19.62%.

Insider Buying and Selling

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the transaction, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Neil J. Fernandes sold 7,659 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $309.60, for a total value of $2,371,226.40. Following the sale, the senior vice president owned 58,470 shares of the company’s stock, valued at approximately $18,102,312. This represents a 11.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 86,339 shares of company stock valued at $27,680,267 over the last 90 days. Company insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Lam Research

Institutional investors and hedge funds have recently made changes to their positions in the business. PMV Capital Advisers LLC bought a new stake in Lam Research during the fourth quarter valued at approximately $25,000. Stance Capital LLC bought a new position in Lam Research in the third quarter worth approximately $26,000. Bayban bought a new position in Lam Research in the fourth quarter worth approximately $26,000. Vermillion Wealth Management Inc. purchased a new position in shares of Lam Research during the 1st quarter worth $26,000. Finally, Cedar Mountain Advisors LLC boosted its stake in shares of Lam Research by 242.9% during the 1st quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 85 shares during the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

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.