Hormel Foods Corporation (NYSE: HRL) has announced its Board of Directors has authorized a two-for-one split of the company’s common stock. This would be the 10th stock split in the company’s history.
“For the second time in the last five years, we are excited to announce a proposed two-for-one stock split,” said Jeffrey M. Ettinger, chairman of the board and chief executive officer at Hormel Foods. “This decision acknowledges our track record of providing our shareholders solid long-term returns and demonstrates our confidence that we will continue to grow our sales and earnings in the future. In addition, we anticipate this will also put our stock price in a more attractive trading range for a number of individual investors.”
Stockholder approval of the stock split is required during the company’s Annual Meeting being held Jan. 26. Under the proposal, the number of authorized shares of voting common stock would increase from 800 million to 1.6 billion.
The Board of Directors established Jan. 26 as the record date for stockholders who would be entitled to receive the split shares. One additional share of common stock will be issued to stockholders around Feb. 9 for each share of common stock they hold on the record date.