Lam Research Corp ( LRCX ) stock is trading higher Tuesday after the company announced a buyback authorization and stock split.

What Happened: Lam Research ( LRCX ) said its board approved a new share repurchase program of up to $10 billion of the company’s common stock. The new buyback supplements the remaining balances from any prior authorizations. 

Repurchases may be conducted through public and private transactions, including the use of derivative contracts and structured share repurchase agreements. Lam Research ( LRCX ) noted that the buyback program has no expiration date and can be paused or terminated 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, executive vice president and CFO of Lam Research ( LRCX ).

“Furthermore, 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.”

Lam Research ( LRCX ) plans to enact a 10-for-1 split of its common stock. The stock split is anticipated to take effect following the market close on Oct. 2 for shareholders of record at that time. Lam Research’s common stock will begin trading on a post-split basis at the market open on Oct. 3.

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LRCX Price Action: Lam Research ( LRCX ) stock was up 2.12% at $962 at the time of publication, according to Benzinga Pro.

Image: Courtesy of Lam Research ( LRCX ).