Lam Research Corp has revealed a forward stock split of ten-for-one, along with a tenfold increase in its authorized common stock shares. This change was enacted at 5:00 p.m. Eastern Time today. To facilitate this, the company has revised its Restated Certificate of Incorporation, splitting each common stock share, valued at $0.001, into ten separate shares.
The overall number of authorized shares has expanded from 400 million to 4 billion. Notably, this amendment did not necessitate stockholder approval. The objectives behind the stock split are to enhance accessibility to stock ownership and potentially boost market liquidity.
As a result of the split, every outstanding share of Lam Research’s common stock will transform automatically into ten shares. Importantly, this adjustment will not change the rights or preferences attached to the shares. Furthermore, related equity incentive plans, existing equity awards, and other contractual commitments will experience proportional modifications in the number of common stock shares they represent, along with adjustments to exercise or conversion prices when relevant.
Announcement of Lam Research stock split
Trading of Lam Research’s common stock on the Nasdaq Global Select Market is anticipated to commence on a split-adjusted basis at market open on Thursday, with the current trading symbol “LRCX” remaining unchanged. The new CUSIP number following the split is 512807306. Lam Research disclosed quarterly revenue of $3.87 billion, surpassing analyst predictions.
Additionally, the company has declared a 15% hike in its quarterly dividend, increasing from $2.00 to $2.30 per share. Two of its board members will finish their terms in November 2024, and Lam Research has appointed industry experts Ita Brennan and Mark Fields to its board of directors. The firm has also introduced its latest cryogenic etch technology, the Lam Cryo 3.0, and announced a $10 billion share buyback program.
Considering the company’s competitive stance, Mizuho Securities has reaffirmed its Outperform rating for Lam Research, despite lowering its price target from $1,050 to $950. The recent stock split by Lam Research corresponds with its robust market position and financial results. The company enjoys a substantial market capitalization of $105.45 billion, indicative of its significant role in the semiconductor sector.
Lam Research has increased its dividend for ten consecutive years, maintaining dividend distributions for 11 years, reflecting a dedication to delivering value to its shareholders. The company’s financial robustness is highlighted by its liquid assets surpassing short-term liabilities, along with a moderate debt level.
