Lam Research (NASDAQ:LRCX) Stock Price Down 2.3% – Here’s What Happened

Lam Research Corporation (NASDAQ:LRCX)’s share price fell 2.3% during trading on Tuesday . The stock traded as low as $277.77 and last traded at $289.24. 8,511,028 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 11,116,329 shares. The stock had previously closed at $296.05.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Lam Research’s non-GAAP gross margin reached 49.9%, with guidance pointing to about 50.5%, reinforcing the view that pricing power and operating leverage are improving as AI chip demand stays strong. LRCX’s Gross Margin Near 50%: More Upside Ahead Amid AI-Led Demand?
• Positive Sentiment: B. Riley Financial raised its price target on Lam Research to $375 from $350 and kept a Buy rating, signaling more upside potential than the current share price implies. B. Riley Adjusts Price Target on Lam Research to $375 From $350, Maintains Buy Rating
• Positive Sentiment: Recent commentary highlighted Lam Research as a beneficiary of AI infrastructure spending, global foundry expansion, and strong earnings momentum, which has helped support the stock near its highs. Assessing Lam Research (LRCX) Valuation After AI Infrastructure Momentum And Analyst Upgrades
• Neutral Sentiment: Articles debating whether Lam Research is near a 52-week high and whether investors should buy or take profits reflect strong momentum, but also suggest some near-term valuation caution. Lam Research Stock Trades Near 52-Week High: Buy More or Book Profits?

Analyst Ratings Changes

Several brokerages have commented on LRCX. Wall Street Zen lowered shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Sunday. Mizuho increased their price target on shares of Lam Research from $295.00 to $330.00 and gave the company an “outperform” rating in a research note on Thursday, April 23rd. KeyCorp reiterated a “sector weight” rating on shares of Lam Research in a research note on Thursday, January 29th. Oppenheimer reiterated an “outperform” rating and issued a $330.00 price target on shares of Lam Research in a research note on Thursday, April 23rd. Finally, Erste Group Bank lowered shares of Lam Research from a “buy” rating to a “hold” rating in a research note on Thursday, April 2nd. Twenty-six investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and an average price target of $291.75.

Lam Research Price Performance

The firm has a market capitalization of $361.71 billion, a price-to-earnings ratio of 54.57, a P/E/G ratio of 2.43 and a beta of 1.81. The company has a fifty day moving average price of $240.96 and a two-hundred day moving average price of $207.09. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35.

Lam Research (NASDAQ:LRCX) last posted its quarterly earnings data on Wednesday, April 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 66.21% and a net margin of 30.94%.The company’s revenue was up 23.8% compared to the same quarter last year. During the same period in the prior year, the company earned $1.04 earnings per share. Lam Research has set its Q4 2026 guidance at 1.500-1.800 EPS. On average, equities research analysts expect that Lam Research Corporation will post 5.67 EPS for the current fiscal year.

Insider Activity

In related news, SVP Neil J. Fernandes sold 18,170 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $255.14, for a total transaction of $4,635,893.80. Following the completion of the sale, the senior vice president directly owned 66,129 shares of the company’s stock, valued at $16,872,153.06. This trade represents a 21.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction 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 sale, the chief financial officer directly owned 1,081,705 shares of the company’s stock, valued at approximately $242,334,371.15. This represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 120,066 shares of company stock valued at $27,953,242. 0.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lam Research

Hedge funds have recently modified their holdings of the stock. PMV Capital Advisers LLC acquired a new stake in shares of Lam Research during the fourth quarter worth $25,000. Stance Capital LLC acquired a new stake in shares of Lam Research during the third quarter worth $26,000. Bayban acquired a new stake in shares of Lam Research during the fourth quarter worth $26,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Lam Research during the first quarter worth $26,000. Finally, Cedar Mountain Advisors LLC lifted 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 worth $26,000 after purchasing an additional 85 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

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.