Stock splits are a significant event in the financial markets, affecting both the stock price and the number of shares outstanding. They are often used by companies to make their shares more accessible to a broader range of investors, increase liquidity, and meet exchange requirements. In 2024, several companies have announced plans for both forward and reverse stock splits.
Forward Stock Splits
1. Chipotle Mexican Grill Inc. (CMG)
Date: June 26, 2024
Ratio: 50-for-1
Details: Chipotle Mexican Grill announced a 50-for-1 forward stock split to make its shares more accessible to a broader range of investors. The split means that each share of CMG will be divided into 50 shares, significantly lowering the price per share and increasing the number of shares outstanding. This move is often aimed at enhancing liquidity and making the stock more attractive to retail investors.
2. Webtoon Entertainment Inc. (WBTN)
Date: June 25, 2024
Ratio: 30-for-1
Details: Webtoon Entertainment’s 30-for-1 forward split will significantly reduce the share price, aiming to boost trading volume and accessibility. Each existing share will be split into 30 shares, reducing the individual share price and potentially attracting more investors.
3. Barrett Business Services Inc. (BBSI)
Date: June 24, 2024
Ratio: 4-for-1
Details: Barrett Business Services is implementing a 4-for-1 forward split. This means for every share owned, shareholders will receive an additional three shares. The goal is to make the shares more affordable and increase market participation.
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4. Amphenol Corp (APH)
Date: June 12, 2024
Ratio: 2-for-1
Details: Amphenol’s 2-for-1 forward split is designed to make the stock more attractive by halving the share price and doubling the number of shares outstanding. This move typically aims to enhance liquidity and broaden the investor base.
5. Canadian Natural Resources Ltd. (CNQ)
Date: June 11, 2024
Ratio: 2-for-1
Details: Similar to Amphenol, Canadian Natural Resources’ 2-for-1 split will make its shares more affordable and accessible to a wider range of investors, potentially increasing trading activity and market interest.
Reverse Stock Splits
1. Nikola Corp (NKLA)
Date: June 25, 2024
Ratio: 1-for-30
Details: Nikola is conducting a 1-for-30 reverse split to consolidate its shares, which will increase the stock price by reducing the number of shares outstanding. This move is often used to comply with stock exchange listing requirements and to make the stock appear more valuable.
2. Workhorse Group Inc. (WKHS)
Date: June 17, 2024
Ratio: 1-for-20
Details: Workhorse’s 1-for-20 reverse split will reduce the number of shares in circulation, raising the price per share. This is generally done to prevent delisting from stock exchanges and to attract institutional investors who may shy away from lower-priced stocks.
3. Virgin Galactic Holdings Inc. (SPCE)
Date: June 17, 2024
Ratio: 1-for-20
Details: Virgin Galactic’s reverse split aims to consolidate shares and boost the per-share price. This can help the company maintain its stock exchange listing and appeal to a broader base of investors.
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4. 2U Inc. (TWOU)
Date: June 14, 2024
Ratio: 1-for-30
Details: 2U Inc. is implementing a 1-for-30 reverse split to reduce the number of shares and increase the stock price. This move is typically used to stabilize share prices and meet minimum price requirements for stock exchanges.
5. Barnes & Noble Education Inc. (BNED)
Date: June 12, 2024
Ratio: 1-for-100
Details: Barnes & Noble Education’s 1-for-100 reverse split is a significant consolidation, intended to elevate the stock price and maintain compliance with listing standards. Such a large reverse split can dramatically impact the stock price and trading behavior.
Other Notable Splits
1. BuzzFeed (BZFD)
Date: May 6, 2024
Ratio: 1-for-4 (Reverse Split)
Details: BuzzFeed’s reverse split will consolidate shares and increase the per-share price. This move can help the company meet stock exchange requirements and improve investor perceptions of the stock’s value.
2. Yield10 Bioscience (YTEN)
Date: May 3, 2024
Ratio: 1-for-24 (Reverse Split)
Details: This reverse split will reduce the number of outstanding shares and increase the share price. Yield10 Bioscience aims to stabilize its stock and meet exchange requirements with this action.
3. Safe & Green (SGBX)
Date: May 2, 2024
Ratio: 1-for-20 (Reverse Split)
Details: Safe & Green’s reverse split will consolidate shares to boost the stock price. This action is typically aimed at maintaining listing standards and improving the stock’s marketability.
4. Gaucho Group (VINO)
Date: May 1, 2024
Ratio: 1-for-10 (Reverse Split)
Details: Gaucho Group’s reverse split will reduce the number of shares and increase the price per share. This can help the company attract more investors and meet listing requirements.
5. Gerdau (GGB)
Date: April 18, 2024
Ratio: 6-for-5 (Forward Split)
Details: Gerdau’s forward split will increase the number of shares outstanding and reduce the share price. This can enhance liquidity and make the shares more accessible to a broader range of investors.
These stock splits are part of strategic decisions by these companies to adjust their stock prices, manage the number of shares outstanding, and make their stocks more attractive to different types of investors. For more detailed and updated information, it is advisable to check financial news sourcesand company announcements regularly (Stock Analysis) (Tickergate).
Stock splits, whether forward or reverse, can significantly impact a company’s stock price and the number of shares outstanding. They are strategic decisions made by companies to attract a broader range of investors, comply with stock exchange requirements, and improve liquidity. In 2024, several notable companies have announced plans for stock splits, and it will be interesting to see how these decisions affect their market performance and investor interest throughout the year.
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