HEICO Declares Stock Splits
Sep 24th 2013 7:40PM
Updated Sep 24th 2013 7:44PM
Next month, there will be 25% more HEICO shares in the world. Today, the company's board of directors declared 5-for-4 stock splits on both its common and class A common shares. Both will be effected in the form of a 25% stock dividend, with investors receiving one new share for every four they already possess. The new shares will be distributed "on or about" Oct. 22 to holders of record as of Oct. 11.
Fractional share holdings are to be paid in cash, at the most recent stock price for the relevant security.
In the press release announcing the news, HEICO pointed out that this marks the 14th stock dividend or split since the company began engaging in such activities in 1995.
Although the company's number of shares will rise after the split, their overall value will not change substantially. Proportionally, therefore, stockholders will hold the same stake in the company as they did previously.
At the moment, HEICO has just over 53 million common shares outstanding, and they trade at $69.32 apiece. As for its class A stock, the tally is the same, and the most recent closing price is $51.57 per share.
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