Corvel Corporation has announced a three-for-one forward stock split of its common stock, as well as a proportionate increase in the number of authorized shares of common stock to accommodate the split. The stock split is subject to the filing of an amendment to the company’s fourth amended and restated certificate of incorporation with the secretary of state of the state of Delaware, which the company expects to file on December 24, 2024.
The decision to implement the stock split and authorized share increase comes as a result of the company's extraordinary growth in stock price over the past several years, driven by strong financial performance and successful execution of its strategic plan. Michael G. Combs, the company’s president, chief executive officer, and chairman of the board, stated, “We believe it is the right time to effect a forward stock split to increase the accessibility of our stock to potential investors while maintaining our focus on delivering our customers enhanced technological solutions for the management of their healthcare needs.”
Following the filing and effectiveness of the amendment, every one share of common stock outstanding or held in treasury on December 23, 2024, the record date for the stock split, will be split into three shares of common stock. Trading is currently expected to begin on a post-stock split adjusted basis at market open on December 26, 2024.
As a business and finance journalist, it's important to note that the company's decision to move forward with a stock split and authorized share increase reflects its confidence in its financial performance and strategic direction, as well as its commitment to making its stock more accessible to potential investors. As a result of these announcements, the company's shares have moved -0.8% on the market, and are now trading at a price of $352.0. If you want to know more, read the company's complete 8-K report here.
