Lam Research (NASDAQ:LRCX) Shares Down 4.6% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) dropped 4.6% during mid-day trading on Tuesday . The stock traded as low as $317.41 and last traded at $327.92. 10,192,976 shares were traded during mid-day trading, a decline of 9% from the average session volume of 11,229,070 shares. The stock had previously closed at $343.84.

Wall Street Analyst Weigh In

A number of brokerages have commented on LRCX. Citigroup reaffirmed a “buy” rating and set a $450.00 price target (up from $315.00) on shares of Lam Research in a research report on Wednesday, June 17th. Evercore reissued an “outperform” rating and issued a $355.00 price objective on shares of Lam Research in a report on Monday, July 20th. Stifel Nicolaus raised their price objective on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. UBS Group reaffirmed a “buy” rating and set a $375.00 target price (up from $310.00) on shares of Lam Research in a report on Tuesday, June 9th. Finally, Barclays reiterated an “overweight” rating and issued a $335.00 target price (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $358.47.

Lam Research Price Performance

The firm has a 50-day simple moving average of $339.57 and a two-hundred day simple moving average of $285.35. The company has a market capitalization of $387.29 billion, a price-to-earnings ratio of 53.71, a P/E/G ratio of 1.30 and a beta of 1.84. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30.

Lam Research (NASDAQ:LRCX) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.13. The business had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. Lam Research had a return on equity of 67.60% and a net margin of 31.27%.The company’s revenue for the quarter was up 30.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. As a group, analysts predict that Lam Research Corporation will post 9.32 earnings per share for the current fiscal year.

Insider Transactions at Lam Research

In related news, SVP Neil J. Fernandes sold 7,659 shares of the business’s stock in a transaction on 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 completion of the transaction, the senior vice president directly owned 58,470 shares in the company, valued at $18,102,312. The trade was a 11.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the sale, the director directly owned 87,142 shares in the company, valued at $29,192,570. This trade represents a 17.34% 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 have sold 80,441 shares of company stock valued at $27,614,296 in the last 90 days. 0.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. World Equity Group Inc. raised its holdings in Lam Research by 0.5% in the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 29 shares during the period. Tenzing Financial LLC increased its position in shares of Lam Research by 3.5% in the second quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock valued at $441,000 after buying an additional 34 shares in the last quarter. Gibraltar Capital Management Inc. raised its stake in shares of Lam Research by 3.6% during the 2nd quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock worth $455,000 after buying an additional 36 shares during the period. Elevated Financial Group LLC lifted its position in shares of Lam Research by 3.0% during the 2nd quarter. Elevated Financial Group LLC now owns 1,223 shares of the semiconductor company’s stock valued at $530,000 after buying an additional 36 shares in the last quarter. Finally, Yoder Wealth Management Inc. lifted its position in shares of Lam Research by 3.3% during the 2nd quarter. Yoder Wealth Management Inc. now owns 1,129 shares of the semiconductor company’s stock valued at $489,000 after buying an additional 36 shares in the last quarter. Institutional investors and hedge funds 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.