Investors Buy Large Volume of Lam Research Put Options (NASDAQ:LRCX)

Lam Research Corporation (NASDAQ:LRCX) was the recipient of some unusual options trading on Monday. Stock investors purchased 85,762 put options on the stock. This is an increase of 112% compared to the average volume of 40,536 put options.

Lam Research News Roundup

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

• Positive Sentiment: Sanford C. Bernstein raised its price target to $285 and kept an “outperform” rating, signaling continued analyst confidence in LRCX’s growth runway. Bernstein Adjusts Price Target on Lam Research
• Positive Sentiment: Another outlet raised Lam’s price target to $265, reinforcing upward analyst revisions that can support valuation. Price Target Raised to $265
• Positive Sentiment: Lam announced a dividend that drove an earlier ~8% stock pop, showing management willingness to return capital and boosting near‑term investor sentiment. Dividend Announcement Lifted Stock
• Positive Sentiment: Industry commentary (Zacks, The Motley Fool) highlights strong secular demand for AI, ML and memory chips — a tailwind for Lam’s wafer‑fabrication equipment business and revenue visibility. 3 Stocks to Buy From the Prospering Semiconductor Industry This Growth Stock Continues to Crush the Market
• Neutral Sentiment: Technically, LRCX crossed above its 20‑day moving average, a short‑term bullish signal that may attract momentum traders. 20-Day Moving Average Crossover
• Negative Sentiment: A leadership shift and a strategic alliance with CEA‑Leti prompted an analysis questioning whether some of Lam’s recent multiple expansion is justified, raising short‑term valuation concerns. Leadership Shift And CEA Leti Alliance Spark Valuation Questions
• Negative Sentiment: Director Eric Brandt sold 35,000 shares (~$7.9M) last week, materially reducing his stake; insider sales can spook investors even if not unusual. Director Eric Brandt Form 4
• Negative Sentiment: Unusual options flow: ~85,762 put contracts were bought (≈+112% vs. average), indicating elevated downside hedging or bearish positioning by some traders.

Lam Research Stock Down 0.7%

Shares of NASDAQ:LRCX opened at $229.28 on Tuesday. Lam Research has a 1 year low of $56.32 and a 1 year high of $251.87. The company has a market capitalization of $286.32 billion, a PE ratio of 46.98, a price-to-earnings-growth ratio of 2.49 and a beta of 1.78. The business has a fifty day moving average price of $195.87 and a two-hundred day moving average price of $151.97. 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 released its earnings results on Wednesday, January 28th. The semiconductor company reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.10. The company had revenue of $5.34 billion for 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 business’s revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.91 EPS. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. Analysts forecast that Lam Research will post 3.71 earnings per share for the current year.

Lam Research Announces Dividend

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 given 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%.

Insider Buying and Selling

In other Lam Research news, Director Eric Brandt sold 35,000 shares of Lam Research stock in a transaction on Friday, February 6th. The shares were sold at an average price of $225.60, for a total value of $7,896,000.00. Following the completion of the sale, the director directly owned 253,705 shares of the company’s stock, valued at approximately $57,235,848. The trade was a 12.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Douglas R. Bettinger sold 40,080 shares of the stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the transaction, the chief financial officer directly owned 987,237 shares in the company, valued at $148,677,892.20. This trade represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its stake in Lam Research by 1,032.4% in the 4th quarter. Brighton Jones LLC now owns 14,189 shares of the semiconductor company’s stock valued at $1,025,000 after buying an additional 12,936 shares in the last quarter. Caxton Associates LLP bought a new position in Lam Research in the 1st quarter worth about $239,000. Ignite Planners LLC grew its holdings in Lam Research by 32.8% during the 2nd quarter. Ignite Planners LLC now owns 5,169 shares of the semiconductor company’s stock valued at $520,000 after buying an additional 1,277 shares in the last quarter. Callan Family Office LLC increased its position in shares of Lam Research by 121.5% during the second quarter. Callan Family Office LLC now owns 26,169 shares of the semiconductor company’s stock valued at $2,547,000 after buying an additional 14,354 shares during the period. Finally, Cyndeo Wealth Partners LLC purchased a new stake in shares of Lam Research in the second quarter worth about $295,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

LRCX has been the subject of a number of research reports. KeyCorp reissued a “sector weight” rating on shares of Lam Research 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 company an “overweight” rating in a research note on Thursday, January 29th. Needham & Company LLC lifted their price objective on shares of Lam Research from $250.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, January 20th. Finally, Citic Securities increased their price objective on Lam Research from $165.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, Lam Research presently has an average rating of “Moderate Buy” and a consensus price target of $244.88.

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.