Lam Research (NASDAQ:LRCX) stock has risen more than 4% premarket Tuesday after the company announced a share repurchase program and a stock split.
The company's board has authorized a repurchase of up to $10 billion of common stock. The new share repurchase authorization supplements the remaining balances from any prior authorizations.
The company said its latest share buyback program has no termination date and can be suspended or discontinued at any time.
"The share repurchase authorization announced today will execute over an indeterminate period of time and is consistent with our plan to return 75% to 100% of free cash flow to stockholders in the form of dividends and share buybacks," said Doug Bettinger, Lam's Executive Vice President, and Chief Financial Officer.
Meanwhile, the company's stock split of shares of LRCX common stock will be at a ratio of 10:1 and is expected to be effective after market close on Wednesday, October 2, 2024.
Bettinger added: "The stock split announced today will enable a larger proportion of Lam's worldwide employee base to participate in the company's employee stock plans."
Premarket Tuesday, LRCX shares are up 4.45% at $984, adding to Monday's 3.3% gain, which saw it close at $942.04.