FREMONT, CA – Lam Research Corp (NASDAQ:LRCX) announced a significant update to its capital structure today, implementing a ten-for-one forward stock split and increasing its authorized shares of common stock tenfold. The announcement, based on a filing with the Securities and Exchange Commission, detailed that the move took effect at 5:00 p.m. Eastern Time today.
In a strategic change to its corporate charter, the Delaware-incorporated 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. Concurrently, the total number of authorized shares of common stock has risen from 400 million to 4 billion. This amendment did not necessitate stockholder approval, as per Section 242(d) of the General Corporation Law of the State of Delaware.
The stock split is designed to make stock ownership more accessible and could potentially increase market liquidity. As a result of this adjustment, every outstanding share of Lam Research's common stock has been automatically converted into ten shares. However, the split does not alter any rights or preferences of the shares.
The company'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.
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, a prominent player in the special industry machinery sector, has its principal executive offices in Fremont, California. The information for this article is based on a press release statement.
In other recent news, Lam Research, a significant player in the semiconductor industry, reported quarterly revenue of $3.87 billion, exceeding analyst expectations. This performance was primarily driven by increased demand for AI-powered chips.
The company also announced a 15% increase in its quarterly dividend, escalating from $2.00 to $2.30 per share. In addition, Lam Research revealed that two of its board members will conclude their service in November 2024, and 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 and a 10-for-1 stock split, set to take effect in October 2024. Mizuho Securities maintained its Outperform rating on Lam Research, despite lowering its price target from $1,050 to $950, based on the company's competitive positioning within the industry.
InvestingPro Insights
Lam Research's recent stock split aligns with its strong market position and financial performance. According to InvestingPro data, the company boasts a substantial market capitalization of $105.45 billion, reflecting its significant presence in the semiconductor industry. This move to increase accessibility to its shares comes at a time when Lam Research has demonstrated robust financial health and shareholder value.
InvestingPro Tips highlight that Lam Research has raised its dividend for 10 consecutive years and maintained dividend payments for 11 years, showcasing a commitment to returning value to shareholders. This track record of dividend growth is particularly noteworthy given the recent stock split, as it may attract more dividend-focused investors.
The company's financial strength is further underscored by its liquid assets exceeding short-term obligations and operating with a moderate level of debt. These factors contribute to Lam Research's ability to sustain its growth initiatives and navigate market fluctuations, which is crucial in the dynamic semiconductor industry.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips on Lam Research, providing deeper insights into the company's performance and outlook.
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