Lam Research (NASDAQ:LRCX) Stock Price Down 3.4% – Here’s Why

Lam Research Corporation (NASDAQ:LRCX) traded down 3.4% on Thursday . The stock traded as low as $219.76 and last traded at $220.70. 11,469,361 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 14,260,832 shares. The stock had previously closed at $228.39.

Key Lam Research News

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

• Positive Sentiment: Zacks upgraded LRCX to a Zacks Rank #1 (Strong Buy), a move that typically attracts momentum flows and retail/institutional attention; the upgrade is being cited as a catalyst for optimism about near-term earnings and price momentum. Lam Research (LRCX) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Analyst commentary (Zacks) and coverage notes point to strong AI-chip demand and rising DRAM spending that should help LRCX beat Q2 estimates, supporting upside expectations for revenue and margins. LRCX Likely to Beat Q2 Earnings Estimates: Should You Buy the Stock?
• Positive Sentiment: Media coverage highlights AI-driven momentum (a recent piece notes the stock jumped on AI buzz and tariff news), which can attract short-term buyers and program trades. Why Lam Research (LRCX) Is Up 5.0% After AI Buzz And Tariff Jitters Hit Spotlight
• Neutral Sentiment: New Street raised its price target to $195 (from $140) but kept a “neutral” rating — the higher target signals improving fundamental views, but the maintained neutral limits the endorsement strength for further rallies. New Street Adjusts Lam Research Price Target to $195 From $140; Maintains Neutral Rating
• Neutral Sentiment: High-profile mentions (e.g., Jim Cramer calling LRCX “the best of the best” while warning about buying parabolic moves) can boost credibility but also encourage caution among momentum-sensitive traders. Jim Cramer calls Lam Research the “best of the best” but warns against buying parabolic moves
• Negative Sentiment: Unusually large put-option volume: traders bought ~87,781 puts (about +129% vs. average), a sharp rise in bearish/options-hedging activity that can signal investor risk-off, price protection flows, or speculative bearish bets — all of which can add downward pressure or volatility.
• Negative Sentiment: Relative weakness vs. peers: coverage notes that LRCX underperformed competitors on Thursday, a datapoint traders watch for leadership shifts within the semiconductor equipment group and to gauge rotation risk. Lam Research Corp. stock underperforms Thursday when compared to competitors

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on LRCX shares. JPMorgan Chase & Co. boosted their price target on shares of Lam Research from $113.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, October 23rd. Needham & Company LLC reaffirmed a “buy” rating and set a $250.00 price objective (up from $160.00) on shares of Lam Research in a research report on Tuesday. BNP Paribas Exane increased their target price on Lam Research from $80.00 to $140.00 and gave the stock a “neutral” rating in a research report on Thursday, October 23rd. Royal Bank Of Canada set a $260.00 target price on Lam Research in a research note on Wednesday, January 14th. Finally, Berenberg Bank upped their price target on Lam Research from $122.00 to $165.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $200.52.

Lam Research Stock Down 1.3%

The company has a quick ratio of 1.60, a current ratio of 2.21 and a debt-to-equity ratio of 0.37. The company has a market cap of $273.74 billion, a PE ratio of 48.00, a PEG ratio of 2.52 and a beta of 1.77. The company’s fifty day moving average is $178.08 and its 200-day moving average is $141.29.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.04. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.The business had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.23 billion. During the same period last year, the firm posted $0.86 earnings per share. The business’s revenue for the quarter was up 27.7% on a year-over-year basis. On average, analysts predict that Lam Research Corporation will post 3.71 EPS for the current year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 7th. Investors of record on Wednesday, December 3rd were issued a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s dividend payout ratio is currently 22.91%.

Insider Transactions at Lam Research

In other Lam Research news, insider Ava Harter sold 9,010 shares of the stock in a transaction on Monday, October 27th. The stock was sold at an average price of $157.47, for a total value of $1,418,804.70. Following the completion of the sale, the insider owned 56,786 shares in the company, valued at approximately $8,942,091.42. This represents a 13.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Bethany Mayer sold 1,298 shares of the stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $159.99, for a total value of $207,667.02. Following the sale, the director owned 1,652 shares of the company’s stock, valued at $264,303.48. This represents a 44.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 50,418 shares of company stock valued at $7,667,305 over the last three months. Corporate insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of hedge funds have recently bought and sold shares of LRCX. Farther Finance Advisors LLC lifted its stake in shares of Lam Research by 63.1% in the 4th quarter. Farther Finance Advisors LLC now owns 49,779 shares of the semiconductor company’s stock valued at $8,521,000 after purchasing an additional 19,254 shares during the last quarter. Stonehaven Wealth & Tax Solutions LLC raised its holdings in Lam Research by 28.8% during the 4th quarter. Stonehaven Wealth & Tax Solutions LLC now owns 3,148 shares of the semiconductor company’s stock valued at $539,000 after buying an additional 704 shares during the period. Freestone Capital Holdings LLC lifted its position in Lam Research by 1.0% in the fourth quarter. Freestone Capital Holdings LLC now owns 7,996 shares of the semiconductor company’s stock worth $1,369,000 after buying an additional 80 shares during the last quarter. Tyche Wealth Partners LLC purchased a new position in Lam Research during the fourth quarter worth $250,000. Finally, Natural Investments LLC increased its position in Lam Research by 15.5% during the fourth quarter. Natural Investments LLC now owns 3,936 shares of the semiconductor company’s stock valued at $673,000 after acquiring an additional 528 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.