Lam Research Corp announced a ten-for-one forward stock split and increased its authorized shares of common stock tenfold. The move took effect at 5:00 p.m. Eastern Time today. The company has amended its Restated Certificate of Incorporation to divide each share of its common stock, which has a par value of $0.001, into ten shares.
The total number of authorized shares of common stock has risen from 400 million to 4 billion. This amendment did not require stockholder approval. The stock split aims to make stock ownership more accessible and could potentially increase market liquidity.
Every outstanding share of Lam Research’s common stock has been automatically converted into ten shares. The split does not alter any rights or preferences of the shares. Lam Research’s equity incentive plans, outstanding equity awards, and other contractual agreements will see corresponding proportionate adjustments to the number of shares of common stock they represent, as well as to the exercise or conversion prices where applicable.
Lam Research stock split announcement
Trading of Lam Research’s common stock on the Nasdaq Global Select Market is expected to begin on a split-adjusted basis at market open on Thursday, with the company retaining its current trading symbol “LRCX.” The new CUSIP number post-split is 512807306. Lam Research reported quarterly revenue of $3.87 billion, exceeding analyst expectations.
The company also announced a 15% increase in its quarterly dividend, escalating from $2.00 to $2.30 per share. Two of its board members will conclude their service in November 2024, and Lam Research appointed industry veterans Ita Brennan and Mark Fields to its board of directors. The company launched its latest cryogenic etch technology, Lam Cryo 3.0, and announced a $10 billion share repurchase program.
Based on the company’s competitive positioning, Mizuho Securities maintained its Outperform rating on Lam Research despite lowering its price target from $1,050 to $950. Lam Research’s recent stock split aligns with its strong market position and financial performance. The company boasts a substantial market capitalization of $105.45 billion, reflecting its significant presence in the semiconductor industry.
Lam Research has raised its dividend for ten consecutive years and maintained dividend payments for 11 years, showcasing a commitment to returning value to shareholders. The company’s financial strength is further underscored by its liquid assets exceeding short-term obligations and operating with a moderate level of debt.
