Lam Research (NASDAQ:LRCX) Shares Down 1.6% Following Analyst Downgrade

Lam Research Corporation (NASDAQ:LRCX) shares dropped 1.6% during trading on Thursday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The stock traded as low as $208.80 and last traded at $218.44. Approximately 6,712,447 shares were traded during trading, a decline of 44% from the average daily volume of 11,893,776 shares. The stock had previously closed at $222.01.

Several other equities analysts have also issued reports on LRCX. Stifel Nicolaus increased their target price on Lam Research from $250.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, January 29th. JPMorgan Chase & Co. boosted their price target on shares of Lam Research from $165.00 to $300.00 and gave the stock an “overweight” rating in a research note on Thursday, January 29th. Zacks Research raised shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 20th. UBS Group set a $300.00 price objective on shares of Lam Research in a research note on Thursday, January 29th. Finally, Susquehanna set a $325.00 price objective on shares of Lam Research and gave the company a “positive” rating in a report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $245.35.

Insiders Place Their Bets

In other Lam Research news, Director Eric Brandt sold 35,000 shares of the stock in a transaction dated 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 owned 253,705 shares of the company’s stock, valued at $57,235,848. This trade represents a 12.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Douglas R. Bettinger sold 50,057 shares of Lam Research stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $224.03, for a total value of $11,214,269.71. Following the completion of 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 position. The SEC filing for this sale provides additional information. Insiders have sold a total of 130,886 shares of company stock worth $29,658,802 in the last quarter. 0.31% of the stock is owned by company insiders.

Trending Headlines about Lam Research

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

• Positive Sentiment: AI-driven demand positions Lam as a “pick-and-shovel” beneficiary — analysts note semiconductor equipment names like LRCX are surging as AI chip capex lifts long-term revenue potential. 2 AI Pick-and-Shovel Stocks Poised to Be the Next NVIDIA
• Positive Sentiment: Bullish fundamental coverage — Seeking Alpha highlights Lam’s strong margins, improved operating efficiency and positioning as a critical etch-equipment supplier to foundries, supporting longer-term growth expectations. Lam Research: Poised For Growth, Looking Past Short-Term Turbulence
• Positive Sentiment: Price-target lift: New Street Research raised its target to $235 (from $140) — signaling higher valuation potential even while keeping a neutral rating, which can underpin upside expectations. New Street adjusts price target on Lam Research to $235
• Neutral Sentiment: Corporate calendar: Lam set its March-quarter earnings conference call for April 22 — a near-term event that could drive volatility depending on guidance and commentary. Lam Research Corporation Announces March Quarter Financial Conference Call
• Neutral Sentiment: Notable investor moves: Coverage notes Ray Dalio’s Bridgewater trimmed its Lam stake — signals attention from large holders but not necessarily a directional verdict. Lam Research Corporation (LRCX): Billionaire Ray Dalio Trims Stake in Chip Stock
• Negative Sentiment: Analyst downgrade: Erste Group cut LRCX from “buy” to “hold,” adding near-term selling pressure as momentum investors react. Finviz: Analyst downgrade
• Negative Sentiment: Regulatory risk: U.S. lawmakers unveiled draft legislation to tighten exports of chipmaking tools to China — broader restrictions would reduce addressable markets for equipment suppliers and increase geopolitical uncertainty. US Lawmakers Propose Crackdown on Chip Tool Sales to China

Institutional Investors Weigh In On Lam Research

Large investors have recently modified their holdings of the company. Triumph Capital Management increased its holdings in Lam Research by 22.5% in the fourth quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after buying an additional 45 shares during the last quarter. Traphagen Investment Advisors LLC lifted its holdings in Lam Research by 2.4% during the 4th 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 last quarter. Bank of Jackson Hole Trust boosted its position in shares of Lam Research by 12.6% during the 4th quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company’s stock worth $73,000 after acquiring an additional 48 shares in the last quarter. Field & Main Bank boosted its position in shares of Lam Research by 1.1% during the 4th quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company’s stock worth $790,000 after acquiring an additional 50 shares in the last quarter. Finally, Capital Advisors Ltd. LLC increased its holdings in shares of Lam Research by 1.1% in the 4th quarter. Capital Advisors Ltd. LLC now owns 4,646 shares of the semiconductor company’s stock valued at $795,000 after acquiring an additional 51 shares during the last quarter. 84.61% of the stock is owned by hedge funds and other institutional investors.

Lam Research Trading Down 1.6%

The company has a current ratio of 2.26, a quick ratio of 1.61 and a debt-to-equity ratio of 0.37. The firm has a market cap of $272.78 billion, a PE ratio of 44.76, a P/E/G ratio of 2.39 and a beta of 1.78. The business has a fifty day moving average price of $227.01 and a 200 day moving average price of $184.19.

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

Lam Research Dividend Announcement

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

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.