Lam Research (NASDAQ:LRCX) Stock Price Down 3.7% Following Insider Selling

Lam Research Corporation (NASDAQ:LRCX) shares were down 3.7% on Tuesday following insider selling activity. The stock traded as low as $286.59 and last traded at $290.20. 8,153,049 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 11,003,866 shares. The stock had previously closed at $301.49.

Specifically, insider Ava Harter sold 5,000 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, the insider owned 42,462 shares in the company, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of analysts recently weighed in on LRCX shares. Bank of America upped their price objective on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. B. Riley Financial reduced their price target on shares of Lam Research from $385.00 to $350.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Raymond James Financial set a $425.00 price target on shares of Lam Research in a research report on Wednesday, June 10th. Needham & Company LLC reiterated a “buy” rating and set a $390.00 price objective on shares of Lam Research in a research note on Thursday, July 30th. Finally, Morgan Stanley reduced their price objective on shares of Lam Research from $404.00 to $367.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Lam Research currently has an average rating of “Moderate Buy” and a consensus target price of $358.97.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: UBS maintained a Buy rating on Lam Research while lowering its price target from $435 to $425. The revised target still implies substantial upside, signaling that the firm views the recent pullback as an attractive entry point. UBS price target report
• Positive Sentiment: Recent commentary continues to highlight strong semiconductor and artificial-intelligence infrastructure demand. Lam’s latest quarterly results exceeded analyst expectations, with revenue rising 30% year over year, while the company also raised its dividend by 27%. Lam Research dividend article
• Positive Sentiment: Analysts and investment commentary describe Lam Research as potentially undervalued following its summer pullback, citing semiconductor production growth and the ongoing AI-driven equipment spending cycle. Lam Research pullback analysis

Lam Research Stock Down 3.7%

The firm has a market capitalization of $363.13 billion, a P/E ratio of 50.38, a PEG ratio of 1.20 and a beta of 1.84. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. The business’s fifty day moving average price is $328.26 and its two-hundred day moving average price is $290.09.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.69 by $0.13. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. During the same quarter in the previous year, the business posted $1.33 EPS. Lam Research’s revenue was up 30.0% on a year-over-year basis. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities analysts expect that Lam Research Corporation will post 9.33 earnings per share for the current fiscal year.

Lam Research Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd will be issued a dividend of $0.33 per share. The ex-dividend date is Wednesday, September 23rd. This represents a $1.32 annualized dividend and a dividend yield of 0.5%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio (DPR) is currently 18.06%.

Institutional Trading of Lam Research

A number of institutional investors have recently made changes to their positions in LRCX. Bayban purchased a new stake in Lam Research in the fourth quarter valued at about $26,000. Vermillion Wealth Management Inc. purchased a new stake in shares of Lam Research during the first quarter worth about $26,000. Cedar Mountain Advisors LLC increased its holdings in shares of Lam Research by 242.9% during the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company’s stock valued at $26,000 after acquiring an additional 85 shares in the last quarter. Paladin Partners LLC acquired a new position in shares of Lam Research during the second quarter valued at about $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Lam Research in the 4th quarter valued at approximately $27,000. Institutional investors and hedge funds 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.