Lam Research (NASDAQ:LRCX) Shares Down 1.2% Following Insider Selling

Lam Research Corporation (NASDAQ:LRCX)’s stock price traded down 1.2% on Tuesday after an insider sold shares in the company. The company traded as low as $220.25 and last traded at $226.61. 7,899,213 shares changed hands during trading, a decline of 43% from the average session volume of 13,806,510 shares. The stock had previously closed at $229.28.

Specifically, Director Eric Brandt sold 35,000 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $225.60, for a total value of $7,896,000.00. Following the sale, the director directly owned 253,705 shares in the company, valued at approximately $57,235,848. This trade represents a 12.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Bank of America increased their price objective on shares of Lam Research from $195.00 to $245.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Cantor Fitzgerald restated an “overweight” rating and issued a $320.00 target price (up previously from $265.00) on shares of Lam Research in a research report on Thursday, January 29th. Sanford C. Bernstein lifted their price target on Lam Research from $275.00 to $285.00 and gave the company an “outperform” rating in a report on Monday. The Goldman Sachs Group set a $262.00 price objective on Lam Research and gave the stock a “buy” rating in a research report on Thursday, January 29th. Finally, Mizuho set a $265.00 target price on Lam Research in a research report on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $244.88.

Lam Research News Roundup

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

• Positive Sentiment: Multiple analyst upgrades and higher price targets reinforce upside expectations (Sanford C. Bernstein raised its target to $285; other outlets bumped targets to the mid‑$200s), supporting investor confidence. Bernstein Adjusts Price Target on Lam Research
• Positive Sentiment: Industry and fundamentals view: commentary highlights strong AI/memory-driven demand, solid margins and $5B‑plus quarter potential — arguments used to justify a premium multiple. High P/E: Justified Premium or Too Pricey?
• Neutral Sentiment: Technical signal: LRCX recently crossed above its 20‑day moving average, which can attract momentum traders but is a short‑term indicator. 20-Day Moving Average Crossover
• Negative Sentiment: Insider selling: Director Eric Brandt sold 35,000 shares (~$7.9M), trimming his stake — a signal that can trigger short‑term investor caution even if not unusual for insiders to diversify. Director Sells 35,000 Shares
• Negative Sentiment: Leadership/strategic concern: reporting on a leadership shift and the CEA‑Leti alliance prompted questions about whether recent multiple expansion is fully justified, creating valuation uncertainty for some investors. Leadership Shift And CEA Leti Alliance
• Negative Sentiment: Options flow: unusually large put buying (roughly +112% vs. average) indicates elevated hedging or bearish positioning, which can amplify downside pressure in the near term.

Lam Research Trading Down 1.2%

The firm has a market capitalization of $282.98 billion, a P/E ratio of 46.44, a price-to-earnings-growth ratio of 2.46 and a beta of 1.78. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.61 and a current ratio of 2.26. The firm has a 50 day moving average price of $197.23 and a two-hundred day moving average price of $152.89.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.10. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The company had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. During the same period in the previous year, the firm earned $0.91 earnings per share. Lam Research’s revenue for the quarter was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. On average, equities research analysts expect that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 4th will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, March 4th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.5%. Lam Research’s payout ratio is currently 21.31%.

Institutional Investors Weigh In On Lam Research

Several hedge funds have recently made changes to their positions in LRCX. Traphagen Investment Advisors LLC boosted its position in shares of Lam Research by 2.4% in the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock worth $336,000 after buying an additional 46 shares during the period. Field & Main Bank raised its position in Lam Research by 1.1% during the fourth quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company’s stock valued at $790,000 after buying an additional 50 shares during the period. Capital Advisors Ltd. LLC lifted its stake in Lam Research by 1.1% in the 4th quarter. Capital Advisors Ltd. LLC now owns 4,646 shares of the semiconductor company’s stock worth $795,000 after acquiring an additional 51 shares in the last quarter. Retirement Planning Group LLC lifted its stake in Lam Research by 2.9% in the 4th quarter. Retirement Planning Group LLC now owns 1,834 shares of the semiconductor company’s stock worth $314,000 after acquiring an additional 51 shares in the last quarter. Finally, Plancorp LLC boosted its position in Lam Research by 2.1% during the 4th quarter. Plancorp LLC now owns 2,518 shares of the semiconductor company’s stock worth $431,000 after acquiring an additional 51 shares during the period. 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.