Lam Research (NASDAQ:LRCX) Stock Price Down 6.4% – Should You Sell?

Lam Research Corporation (NASDAQ:LRCX) shares dropped 6.4% during mid-day trading on Wednesday . The company traded as low as $250.50 and last traded at $252.35. 15,663,350 shares were traded during trading, an increase of 38% from the average daily volume of 11,355,941 shares. The stock had previously closed at $269.61.

Key Stories Impacting Lam Research

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

• Positive Sentiment: AI and memory demand remain key growth drivers. Recent investor commentary highlighted continued spending on AI data centers, memory and semiconductor capacity—areas that support demand for Lam Research’s wafer-fabrication equipment. Lam Research Rose on AI Data Center and Memory Spending
• Positive Sentiment: Strong semiconductor capital spending has supported the stock. Fund commentary pointed to Lam Research’s exposure to cyclical semiconductor, memory and optical-equipment spending, particularly amid the AI investment boom. Lam Research Corporation Rose on Strong Semiconductor Capital Spending
• Neutral Sentiment: Investors are focused on the fiscal fourth-quarter report due after the market closes on July 29. Lam Research previously reported $5.84 billion in fiscal third-quarter revenue and record non-GAAP earnings per share of $1.47, which exceeded estimates by 8.1%. The new report and management’s outlook will be important tests for the stock’s elevated expectations. Lam Research Earnings Preview
• Negative Sentiment: Broader market weakness is pressuring semiconductor stocks. U.S. equity indexes declined ahead of a Federal Reserve briefing and major technology earnings, while geopolitical concerns involving Iran added to investor caution. This risk-off environment likely contributed to selling in LRCX ahead of its earnings release. US Equity Indexes Slide Ahead of Fed Briefing and Big Tech Results

Analysts Set New Price Targets

Several brokerages have recently weighed in on LRCX. Jefferies Financial Group upped their price target on Lam Research from $285.00 to $315.00 and gave the company a “buy” rating in a research report on Thursday, April 23rd. Cantor Fitzgerald set a $500.00 target price on shares of Lam Research and gave the stock an “overweight” rating in a report on Monday, June 29th. Needham & Company LLC increased their target price on shares of Lam Research from $300.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Weiss Ratings raised shares of Lam Research from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, July 23rd. Finally, Erste Group Bank lowered shares of Lam Research from a “buy” rating to a “hold” rating in a research report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $363.37.

Lam Research Price Performance

The company has a market capitalization of $315.58 billion, a PE ratio of 47.61, a price-to-earnings-growth ratio of 1.73 and a beta of 1.80. The company has a quick ratio of 1.77, a current ratio of 2.54 and a debt-to-equity ratio of 0.35. The firm’s 50-day moving average is $341.94 and its 200-day moving average is $275.43.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The business had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities analysts predict that Lam Research Corporation will post 5.68 earnings per share for the current fiscal year.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were given a dividend of $0.26 per share. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 annualized dividend and a dividend yield of 0.4%. Lam Research’s dividend payout ratio is 19.62%.

Insider Activity at Lam Research

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business’s stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the sale, the director owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. This represents a 21.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 98,611 shares of company stock valued at $32,250,190. Corporate insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

A number of hedge funds have recently made changes to their positions in LRCX. Fideuram Asset Management Ireland dac purchased a new position in shares of Lam Research in the fourth quarter worth $10,035,000. Generali Investments Management Co LLC raised its holdings in Lam Research by 62.0% during the 4th quarter. Generali Investments Management Co LLC now owns 36,274 shares of the semiconductor company’s stock valued at $6,209,000 after buying an additional 13,878 shares during the last quarter. Rokos Capital Management LLP boosted its position in Lam Research by 42.0% during the 1st quarter. Rokos Capital Management LLP now owns 259,921 shares of the semiconductor company’s stock valued at $55,532,000 after buying an additional 76,840 shares during the period. Aware Super Pty Ltd as trustee of Aware Super purchased a new stake in Lam Research during the 1st quarter valued at $59,973,000. Finally, Krilogy Financial LLC grew its holdings in Lam Research by 19.5% in the 1st quarter. Krilogy Financial LLC now owns 28,111 shares of the semiconductor company’s stock worth $6,006,000 after acquiring an additional 4,584 shares during the last quarter. 84.61% of the stock is currently owned by institutional investors.

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.