Lam Research (NASDAQ:LRCX) Trading Down 1.2% – Here’s Why

Shares of Lam Research Corporation (NASDAQ:LRCX) traded down 1.2% on Tuesday . The company traded as low as $173.59 and last traded at $173.78. 5,662,116 shares were traded during trading, a decline of 52% from the average session volume of 11,712,546 shares. The stock had previously closed at $175.87.

Wall Street Analyst Weigh In

LRCX has been the topic of a number of recent analyst reports. The Goldman Sachs Group raised their price target on shares of Lam Research from $115.00 to $160.00 and gave the company a “buy” rating in a research report on Wednesday, October 8th. Jefferies Financial Group restated a “buy” rating and set a $200.00 price objective (up from $175.00) on shares of Lam Research in a research report on Monday, December 15th. Stifel Nicolaus set a $160.00 target price on Lam Research and gave the company a “buy” rating in a research report on Thursday, October 23rd. Evercore ISI upped their price objective on shares of Lam Research from $115.00 to $170.00 and gave the stock an “outperform” rating in a research report on Thursday, October 23rd. Finally, Rothschild & Co Redburn raised their price target on Lam Research from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, October 14th. Twenty-six investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $161.21.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.60 and a current ratio of 2.21. The company has a market cap of $218.27 billion, a price-to-earnings ratio of 38.28, a PEG ratio of 2.06 and a beta of 1.77. The company’s 50 day moving average price is $159.03 and its 200-day moving average price is $127.05.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 EPS for the quarter, beating analysts’ consensus estimates of $1.22 by $0.04. The company had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.23 billion. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The company’s quarterly revenue was up 27.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.86 earnings per share. Lam Research has set its Q2 2026 guidance at 1.050-1.250 EPS. On average, equities research analysts forecast that Lam Research Corporation will post 3.71 earnings per share for the current fiscal year.

Lam Research Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, December 3rd. This represents a $1.04 annualized dividend and a dividend yield of 0.6%. Lam Research’s dividend payout ratio is 22.91%.

Insider Transactions at Lam Research

In other Lam Research news, SVP Vahid Vahedi sold 52,190 shares of the stock in a transaction that occurred on Monday, October 13th. The stock was sold at an average price of $138.90, for a total value of $7,249,191.00. Following the completion of the sale, the senior vice president owned 251,047 shares in the company, valued at approximately $34,870,428.30. This trade represents a 17.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Ava Harter sold 9,010 shares of the stock in a transaction dated Monday, October 27th. The shares were sold at an average price of $157.47, for a total transaction of $1,418,804.70. Following the sale, the insider directly owned 56,786 shares in the company, valued at $8,942,091.42. This trade represents a 13.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 102,608 shares of company stock valued at $14,916,496 in the last 90 days. Corporate insiders own 0.31% of the company’s stock.

Institutional Trading of Lam Research

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of Lam Research by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 130,974,214 shares of the semiconductor company’s stock valued at $17,537,447,000 after acquiring an additional 364,949 shares during the period. State Street Corp increased its stake in shares of Lam Research by 0.4% during the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company’s stock worth $8,024,684,000 after purchasing an additional 265,805 shares in the last quarter. JPMorgan Chase & Co. boosted its position in Lam Research by 14.4% during the second quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock worth $3,954,188,000 after acquiring an additional 5,102,589 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Lam Research by 3.5% in the second quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company’s stock valued at $3,280,484,000 after acquiring an additional 1,135,405 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Lam Research by 18.2% during the 3rd quarter. Invesco Ltd. now owns 21,182,948 shares of the semiconductor company’s stock valued at $2,836,397,000 after buying an additional 3,263,658 shares during the period. 84.61% of the stock is owned by hedge funds and other institutional investors.

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.