Lam Research Corporation (NASDAQ: LRCX) has announced a significant move to enhance shareholder value, with the approval of a $10 billion share repurchase authorization and a forward split of its outstanding shares of common stock at a ratio of 10:1.
The company's board of directors has authorized the repurchase of up to $10 billion of common stock, which will be executed over an indeterminate period of time. This authorization supplements the remaining balances from any prior authorizations and is consistent with the company's plan to return 75% to 100% of free cash flow to stockholders in the form of dividends and share buybacks.
Additionally, the stock split is expected to be effective after market close on Wednesday, October 2, 2024, for stockholders of record at that time. Lam Research's common stock will begin trading on a post-split basis at the market open on Thursday, October 3, 2024, under the company's existing trading symbol "LRCX."
As a result of the stock split, proportionate adjustments will be made to the number of shares of Lam Research's common stock underlying the company's outstanding equity awards, equity incentive plans, and other existing agreements, as well as exercise or conversion prices, as applicable.
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Today, nearly every advanced chip is built with Lam technology.
This move reflects the company's commitment to enhancing shareholder value and enabling a larger proportion of its worldwide employee base to participate in the company's employee stock plans. As a result of these announcements, the company's shares have moved 2.0% on the market, and are now trading at a price of $960.72. If you want to know more, read the company's complete 8-K report here.
