Lam Research (NASDAQ:LRCX) Shares Down 9.7% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) shares traded down 9.7% during trading on Wednesday . The stock traded as low as $381.00 and last traded at $391.26. 18,564,439 shares were traded during trading, an increase of 64% from the average session volume of 11,333,401 shares. The stock had previously closed at $433.33.

Wall Street Analysts Forecast Growth

LRCX has been the subject of several analyst reports. UBS Group reaffirmed a “buy” rating and issued a $375.00 price objective (up from $310.00) on shares of Lam Research in a research note on Tuesday, June 9th. New Street Research increased their target price on shares of Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a research report on Monday, April 27th. Rothschild & Co Redburn raised their target price on Lam Research from $305.00 to $420.00 and gave the company a “buy” rating in a report on Wednesday, June 17th. Zacks Research downgraded Lam Research from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on Lam Research from $300.00 to $325.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. Twenty-eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $345.39.

Lam Research Price Performance

The firm has a market capitalization of $439.46 billion, a price-to-earnings ratio of 66.30, a price-to-earnings-growth ratio of 2.34 and a beta of 1.80. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. The business’s 50 day moving average is $324.63 and its 200-day moving average is $256.70.

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

Lam Research Announces Dividend

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

Insider Buying and Selling at Lam Research

In other news, SVP Neil J. Fernandes sold 7,659 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $309.60, for a total transaction 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ava Harter sold 6,010 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $258.66, for a total value of $1,554,546.60. Following the completion of the sale, the insider directly owned 53,205 shares of the company’s stock, valued at $13,762,005.30. This represents a 10.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 86,339 shares of company stock valued at $27,680,267 in the last 90 days. 0.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lam Research

Large investors have recently bought and sold shares of the stock. GSG Advisors LLC boosted its position in shares of Lam Research by 3.1% during the 1st quarter. GSG Advisors LLC now owns 1,387 shares of the semiconductor company’s stock worth $296,000 after acquiring an additional 42 shares in the last quarter. First County Bank CT raised its position in shares of Lam Research by 1.7% during the 2nd quarter. First County Bank CT now owns 2,483 shares of the semiconductor company’s stock worth $1,076,000 after acquiring an additional 42 shares in the last quarter. Valued Wealth Advisors LLC lifted its stake in Lam Research by 7.9% during the first quarter. Valued Wealth Advisors LLC now owns 589 shares of the semiconductor company’s stock worth $126,000 after purchasing an additional 43 shares during the last quarter. Greenup Street Wealth Management LLC lifted its stake in Lam Research by 1.8% during the first quarter. Greenup Street Wealth Management LLC now owns 2,433 shares of the semiconductor company’s stock worth $520,000 after purchasing an additional 44 shares during the last quarter. Finally, Triumph Capital Management boosted its holdings in Lam Research by 22.5% in the fourth quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 45 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

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.