Lam Research (NASDAQ:LRCX) Trading Down 7.2% on Insider Selling

Lam Research Corporation (NASDAQ:LRCX)’s stock price traded down 7.2% on Friday after an insider sold shares in the company. 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 the business’s stock in a transaction 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 sale, the insider directly owned 53,205 shares in the company, valued at $11,846,625.30. The trade was a 2.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Douglas R. Bettinger sold 50,057 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $224.03, for a total value 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 position. The SEC filing for this sale provides additional information. In related news, insider Ava Harter sold 4,000 shares of Lam Research stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $232.50, for a total value of $930,000.00. Following the completion of the sale, the insider owned 54,705 shares of the company’s stock, valued at approximately $12,718,912.50. This trade represents a 6.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

Several equities research analysts have commented on LRCX shares. UBS Group set a $300.00 price objective on shares of Lam Research in a report on Thursday, January 29th. JPMorgan Chase & Co. lifted their target price 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. Evercore set a $275.00 price target on shares of Lam Research in a research report on Thursday, January 29th. Barclays set a $250.00 price target on shares of Lam Research in a research note on Thursday, January 29th. Finally, KeyCorp reiterated a “sector weight” rating on shares of Lam Research in a research note on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus 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 Price Performance

The business’s 50-day moving average price is $220.95 and its 200 day moving average price is $169.23. The company has a market capitalization of $248.92 billion, a P/E ratio of 40.85, a price-to-earnings-growth ratio of 2.14 and a beta of 1.77. The company has a quick ratio of 1.61, a current ratio of 2.26 and a debt-to-equity ratio of 0.37.

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 analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $5.23 billion. During the same quarter in the prior year, the firm posted $0.91 EPS. Lam Research’s revenue was up 22.1% on a year-over-year basis. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS. Analysts anticipate that Lam Research Corporation will post 3.71 EPS for the current fiscal 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 issued a $0.26 dividend. The ex-dividend date of this dividend 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%.

Institutional Investors Weigh In On Lam Research

Institutional investors and hedge funds have recently made changes to their positions in the business. Triumph Capital Management raised its holdings in shares of Lam Research by 22.5% in the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 45 shares in the last quarter. Traphagen Investment Advisors LLC grew its holdings in shares of Lam Research by 2.4% during the fourth quarter. Traphagen Investment Advisors LLC now owns 1,963 shares of the semiconductor company’s stock worth $336,000 after purchasing an additional 46 shares in the last quarter. Bank of Jackson Hole Trust increased its position in shares of Lam Research by 12.6% in the fourth quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company’s stock worth $73,000 after purchasing an additional 48 shares during the last quarter. Field & Main Bank increased its position in shares of Lam Research by 1.1% in the fourth quarter. Field & Main Bank now owns 4,615 shares of the semiconductor company’s stock worth $790,000 after purchasing an additional 50 shares during the last quarter. Finally, Capital Advisors Ltd. LLC raised its stake in Lam Research by 1.1% in the fourth quarter. Capital Advisors Ltd. LLC now owns 4,646 shares of the semiconductor company’s stock valued at $795,000 after purchasing an additional 51 shares in the last quarter. 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.