Lam Research (NASDAQ:LRCX) Stock Price Down 7.2% Following Insider Selling

Lam Research Corporation (NASDAQ:LRCX) fell 7.2% during mid-day trading on Friday following insider selling activity. The company traded as low as $198.45 and last traded at $199.33. 13,387,498 shares changed hands during mid-day trading, an increase of 9% from the average session volume of 12,236,443 shares. The stock had previously closed at $214.68.

Specifically, insider Ava Harter sold 1,500 shares of Lam Research stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $222.66, for a total value of $333,990.00. Following the transaction, the insider directly owned 53,205 shares of the company’s stock, valued at $11,846,625.30. The trade was a 2.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total transaction of $11,214,269.71. Following the transaction, the chief financial officer owned 1,081,705 shares of the company’s stock, valued at $242,334,371.15. The trade was a 4.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other Lam Research news, insider Ava Harter sold 4,000 shares of the business’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $232.50, for a total transaction of $930,000.00. Following the completion of the sale, the insider directly owned 54,705 shares in the company, valued at $12,718,912.50. The trade was a 6.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on LRCX shares. New Street Research lifted their target price on shares of Lam Research from $195.00 to $235.00 and gave the company a “neutral” rating in a research note on Friday, January 30th. Jefferies Financial Group reissued a “buy” rating and set a $200.00 target price (up from $175.00) on shares of Lam Research in a research report on Monday, December 15th. The Goldman Sachs Group set a $262.00 price objective on shares of Lam Research and gave the stock a “buy” rating in a research note on Thursday, January 29th. Summit Insights raised shares of Lam Research from a “hold” rating to a “buy” rating in a research report on Thursday, January 29th. Finally, Stifel Nicolaus upped their price target on shares of Lam Research from $250.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $245.19.

Trending Headlines about Lam Research

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

• Positive Sentiment: Analyst price targets signal meaningful upside — consensus targets imply roughly ~25% upside, supporting a bullish case that continued AI/foundry demand and upward earnings revisions could drive gains. Read More.
• Positive Sentiment: Technical setup is constructive — LRCX recently crossed above its 50‑day moving average and hit an intraday high after a key trading signal, which can attract momentum buying. Read More.
• Positive Sentiment: Fundamentals remain supportive — Lam posted a recent quarterly beat with strong margins and guidance that underline exposure to wafer‑processing demand for AI and advanced nodes, attracting institutional interest. Read More.
• Neutral Sentiment: Increased media coverage and valuation debate — multiple “too late to buy?” and review pieces raise visibility and spark discussion on whether the current run already prices growth; useful context but not an immediate catalyst. Read More.
• Negative Sentiment: Large insider selling has spooked investors — CFO Douglas Bettinger sold ~50,057 shares (~$11M) and other insiders (including Ava Harter) reported additional sales; while such sales can be for diversification or tax planning, they often trigger near‑term selling pressure. Read More.
• Negative Sentiment: Sector/geo‑political risks and rising energy costs — reports highlight higher operating costs for customer fabs and potential supply‑chain disruptions tied to geopolitical tensions, a near‑term risk driver that has contributed to the pullback. Read More.

Lam Research Trading Down 7.2%

The company’s 50 day simple moving average is $220.95 and its two-hundred day simple moving average is $168.75. The company has a market cap of $248.92 billion, a PE ratio of 40.85, a price-to-earnings-growth ratio of 2.31 and a beta of 1.77. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.26 and a quick ratio of 1.61.

Lam Research (NASDAQ:LRCX) last issued its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.10. Lam Research had a net margin of 30.22% and a return on equity of 62.81%. The business had revenue of $5.34 billion during the quarter, compared to analysts’ expectations of $5.23 billion. During the same quarter in the prior year, the business posted $0.91 EPS. The company’s revenue for the quarter was up 22.1% on a year-over-year basis. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. As a group, sell-side analysts anticipate that Lam Research Corporation will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 4th will be paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Wednesday, March 4th. Lam Research’s dividend 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. PMV Capital Advisers LLC purchased a new stake in Lam Research in the 4th quarter valued at about $25,000. Bayban purchased a new position in shares of Lam Research during the 4th quarter worth about $26,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Lam Research in the fourth quarter worth approximately $27,000. Core Wealth Advisors LLC acquired a new stake in shares of Lam Research in the fourth quarter worth approximately $29,000. Finally, University of Illinois Foundation purchased a new stake in Lam Research in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

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.