Lam Research Sees Unusually High Options Volume (NASDAQ:LRCX)

Lam Research Corporation (NASDAQ:LRCX) was the target of some unusual options trading on Friday. Stock traders purchased 87,781 put options on the stock. This represents an increase of 129% compared to the average daily volume of 38,340 put options.

Key Stories Impacting Lam Research

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

• Positive Sentiment: Zacks upgraded LRCX to a Zacks Rank #1 (Strong Buy), a move that typically attracts momentum flows and retail/institutional attention; the upgrade is being cited as a catalyst for optimism about near-term earnings and price momentum. Lam Research (LRCX) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Analyst commentary (Zacks) and coverage notes point to strong AI-chip demand and rising DRAM spending that should help LRCX beat Q2 estimates, supporting upside expectations for revenue and margins. LRCX Likely to Beat Q2 Earnings Estimates: Should You Buy the Stock?
• Positive Sentiment: Media coverage highlights AI-driven momentum (a recent piece notes the stock jumped on AI buzz and tariff news), which can attract short-term buyers and program trades. Why Lam Research (LRCX) Is Up 5.0% After AI Buzz And Tariff Jitters Hit Spotlight
• Neutral Sentiment: New Street raised its price target to $195 (from $140) but kept a “neutral” rating — the higher target signals improving fundamental views, but the maintained neutral limits the endorsement strength for further rallies. New Street Adjusts Lam Research Price Target to $195 From $140; Maintains Neutral Rating
• Neutral Sentiment: High-profile mentions (e.g., Jim Cramer calling LRCX “the best of the best” while warning about buying parabolic moves) can boost credibility but also encourage caution among momentum-sensitive traders. Jim Cramer calls Lam Research the “best of the best” but warns against buying parabolic moves
• Negative Sentiment: Unusually large put-option volume: traders bought ~87,781 puts (about +129% vs. average), a sharp rise in bearish/options-hedging activity that can signal investor risk-off, price protection flows, or speculative bearish bets — all of which can add downward pressure or volatility.
• Negative Sentiment: Relative weakness vs. peers: coverage notes that LRCX underperformed competitors on Thursday, a datapoint traders watch for leadership shifts within the semiconductor equipment group and to gauge rotation risk. Lam Research Corp. stock underperforms Thursday when compared to competitors

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on LRCX. Stifel Nicolaus increased their target price on shares of Lam Research from $160.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, January 14th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $260.00 price objective (up from $195.00) on shares of Lam Research in a report on Wednesday. Cantor Fitzgerald reiterated an “overweight” rating and set a $265.00 target price (up from $210.00) on shares of Lam Research in a research report on Thursday, January 8th. Weiss Ratings restated a “buy (b)” rating on shares of Lam Research in a research report on Monday, December 29th. Finally, B. Riley reaffirmed a “buy” rating on shares of Lam Research in a research note on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $200.52.

Insider Activity at Lam Research

In other Lam Research news, insider Ava Harter sold 9,010 shares of the company’s stock in a transaction on Monday, October 27th. The stock was sold at an average price of $157.47, for a total value of $1,418,804.70. Following the transaction, the insider directly owned 56,786 shares of the company’s stock, valued at $8,942,091.42. This represents a 13.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Douglas R. Bettinger sold 40,080 shares of Lam Research stock in a transaction on Friday, November 14th. The stock was sold at an average price of $150.60, for a total value of $6,036,048.00. Following the sale, the chief financial officer directly owned 987,237 shares of the company’s stock, valued at $148,677,892.20. This represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 50,418 shares of company stock worth $7,667,305 in the last ninety days. 0.31% of the stock is owned by company insiders.

Institutional Trading of Lam Research

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in 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 grew its stake in shares of Lam Research by 0.4% in the third 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 during the last quarter. JPMorgan Chase & Co. increased its holdings in Lam Research by 14.4% in the second quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock valued at $3,954,188,000 after purchasing an additional 5,102,589 shares during the period. Geode Capital Management LLC raised its position in Lam Research by 3.5% during the 2nd quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company’s stock worth $3,280,484,000 after purchasing an additional 1,135,405 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in Lam Research by 18.2% during the 3rd quarter. Invesco Ltd. now owns 21,182,948 shares of the semiconductor company’s stock worth $2,836,397,000 after buying an additional 3,263,658 shares during the period. 84.61% of the stock is currently owned by institutional investors.

Lam Research Price Performance

LRCX stock opened at $217.94 on Friday. The stock has a market cap of $273.74 billion, a price-to-earnings ratio of 48.00, a P/E/G ratio of 2.52 and a beta of 1.77. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.21 and a quick ratio of 1.60. The company has a 50 day simple moving average of $178.08 and a 200 day simple moving average of $141.29. Lam Research has a 1 year low of $56.32 and a 1 year high of $236.10.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, October 22nd. The semiconductor company reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.22 by $0.04. Lam Research had a net margin of 29.66% and a return on equity of 60.60%. The firm had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.23 billion. During the same quarter in the previous year, the firm posted $0.86 earnings per share. The company’s revenue was up 27.7% on a year-over-year basis. Research analysts anticipate that Lam Research will post 3.71 EPS for the current fiscal year.

Lam Research Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Wednesday, December 3rd were issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, December 3rd. Lam Research’s dividend payout ratio is presently 22.91%.

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.