Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Stock Information
Our Common Stock is traded on the Nasdaq Global Select Market SM under the symbol “LRCX.” As of August 22, 2024, we had 416 stockholders of record.
On May 21, 2024, we announced a 10-for-one stock split, which is expected to be effective after market close on October 2, 2024, for stockholders of record at that time. Share and per share information throughout this Annual Report on Form 10-K has not been adjusted for the effects of the stock split.
Dividends
Our Board of Directors has declared quarterly dividends since April 2014. Our intent to continue to pay quarterly dividends is subject to capital availability and periodic determinations by our Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all laws and agreements applicable to the declaration and payment of cash dividends by us. During fiscal year 2024, our quarterly dividend declared was $2.00 per share.
Repurchases of Company Shares
In May 2024, the Board of Directors authorized management to repurchase up to an additional $10.0 billion of Common Stock; this authorization supplements the remaining balance from any prior authorization. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time.
Accelerated Share Repurchase Agreements
On February 1, 2024, we entered into accelerated share repurchase agreements (the "February 2024 ASRs") with two financial institutions to repurchase a total of $700 million of Common Stock. We took an initial delivery of approximately 631 thousand shares, which represented 75% of the prepayment amount divided by our closing stock price on February 1, 2024. The total number of shares received under the February 2024 ASRs was based upon the average daily volume weighted average price of our Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the February 2024 ASRs occurred during April 2024, resulting in the receipt of approximately 140 thousand additional shares, which yielded a weighted-average share price of $917.38 (net of applicable excise taxes) for the transaction period.
Share repurchases, including those under the repurchase program, were as follows:
Period Total Number
of Shares
Repurchased (1)
Average
Price Paid
per Share (2, 3)
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs Amount
Available
Under
Repurchase
Program
(in thousands, except per share data)
Available balance as of June 25, 2023 $ 3,537,217
Quarter ended September 24, 2023 1,266 $ 659.88 1,257 2,707,343
Quarter ended December 24, 2023 976 $ 660.25 970 2,067,076
Quarter ended March 31, 2024 951 $ 853.12 828 (4) 1,206,992
April 1, 2024 - April 28, 2024 142 $ 882.88 140 (4) 1,206,729
Board authorization, $10.0 billion, May 2024 — $ — — 11,206,729
April 29, 2024 - May 26, 2024 24 $ 974.07 21 11,186,612
May 27, 2024 - June 30, 2024 365 $ 994.90 364 10,824,660
Total
3,724 $ 993.29 (5) 3,580 $ 10,824,660
(1) During the fiscal year ended June 30, 2024, we acquired 144 thousand shares at a total cost of $135.9 million which we withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under our equity compensation plans. The shares retained by us through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under our equity compensation plan.
(2) Average price paid per share excludes the effect of accelerated share repurchase activities. See additional disclosure above regarding our accelerated share repurchase activity during the fiscal year.
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(3) Our net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred reduces the amount available under repurchase programs, as applicable, and is included in the cost of shares repurchased in the Consolidated Statement of Stockholders’ Equity and the calculation of the average price paid per share.
(4) Includes shares received at initial or final settlement of accelerated share repurchase agreements; see additional disclosures above regarding our accelerated share repurchase activity during the fiscal year.
(5) Average price paid per share presented is for the quarter ended June 30, 2024.
Cumulative Five-Year Return
The graph below compares Lam Research Corporation’s cumulative five-year total shareholder return on Common Stock with the cumulative total returns of the Philadelphia Semiconductor Sector Total Return Index, the Nasdaq Composite Total Return index, and the Standard & Poor’s (“S&P”) 500 (TR) index. The graph tracks the performance of a $100 investment in our Common Stock and in each of the indices (with the reinvestment of all dividends) for the five years ended June 30, 2024.
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN*
Among Lam Research Corporation, the Philadelphia Semiconductor Sector Total Return Index, the Nasdaq Composite Total Return Index, and the S&P 500 (TR) Index.
*$100 invested on June 30, 2019 in stock or index, including reinvestment of dividends.
Copyright © 2024 Standard & Poor’s, a division of S&P Global. All rights reserved.
June 30, 2019 June 28, 2020 June 27, 2021 June 26, 2022 June 25, 2023 June 30, 2024
Lam Research Corporation $ 100.00 $ 163.97 $ 345.41 $ 249.39 $ 341.98 $ 604.09
Philadelphia Semiconductor Sector Total Return Index $ 100.00 $ 134.13 $ 229.27 $ 194.74 $ 254.85 $ 402.02
Nasdaq Composite Total Return Index $ 100.00 $ 123.12 $ 182.53 $ 148.57 $ 174.25 $ 230.80
S&P 500 (TR) Index $ 100.00 $ 104.32 $ 150.75 $ 139.77 $ 158.06 $ 201.53
Lam Research Corporation 2024 10-K 28
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Item 6. [Reserved]