BBSI Declares Four-for-One Stock Split
Barrett Business Services (BBSI) has announced a four-for-one stock split. Shareholders will receive three additional shares for each share they hold as of June 14, 2024. The new shares will be distributed on June 21, 2024, and trading will resume on a split-adjusted basis on June 24, 2024. This move is intended to improve trading efficiency and broaden investor accessibility. Post-split, BBSI will have approximately 26 million shares outstanding, up from 6,507,409 shares as of May 31, 2024. Second-quarter 2024 earnings per share will be reported on a split-adjusted basis.
- BBSI will have approximately 26 million shares outstanding after the split, increasing from 6,507,409 shares.
- The stock split aims to improve trading efficiency and make stock ownership more accessible.
- Shareholders will receive three additional shares for each share they hold as of June 14, 2024.
- Earnings per share for the second quarter of 2024 will be split-adjusted, which may affect perceived earnings growth.
Insights
Barrett Business Services, Inc. (BBSI) has announced a four-for-one stock split. This means that for every share an investor currently holds, they will receive three additional shares.
One immediate effect of this split will be to increase the number of outstanding shares from 6.5 million to 26 million. This should make BBSI's stock more liquid, or easier to trade, which can attract more investors and potentially increase demand for the stock.
The market capitalization of the company— the total value of all its shares of stock— will not change. This is important to understand as it means the company's overall value remains the same, but is divided among more shares.
Stock splits can also make shares more affordable for retail investors, potentially broadening the shareholder base. If the stock was trading at
This move can be seen as a positive signal of management’s confidence in the company's future performance, as it is often executed when management believes the stock is performing well and will continue to attract investors.
However, it’s important to note that while a stock split can improve trading liquidity and marketability, it does not inherently improve the company’s fundamentals.
The declared four-for-one stock split by BBSI aims to make the stock more accessible to a broader range of investors. This step can enhance retail participation in the stock, which is generally perceived as a positive move. When stocks are priced lower, they often seem more approachable to small investors, which can increase overall trading activity and investor interest.
However, the essential financial health and performance indicators of the company remain unchanged. The split will not affect the company's price/earnings (P/E) ratio, earnings per share (EPS), or dividend yield in real terms. Investors should be cautious and not perceive the stock split as an automatic increase in the company's value or future performance.
For retail investors, this is an opportunity to buy into a stock at a lower price point, but it’s important to continue to evaluate BBSI based on its fundamental performance metrics and growth prospects. The split-adjusted EPS will need to be monitored closely in the upcoming earnings report to understand how the company is performing operationally.
VANCOUVER, Wash., June 04, 2024 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or the “Company”) (NASDAQ: BBSI), a leading provider of business management solutions, today announced that its board of directors has declared a four-for-one split of the Company’s common stock in the form of a stock dividend.
Each stockholder of record on June 14, 2024, will receive a dividend of three additional shares of common stock for each share they hold, to be distributed on June 21, 2024. Trading will resume on a stock split-adjusted basis on June 24, 2024.
The stock split is expected to improve the overall trading efficiency of BBSI’s stock and make stock ownership more accessible to a broader range of investors.
As of May 31, 2024, BBSI had 6,507,409 shares of common stock outstanding. Following the stock split, BBSI will have approximately 26.0 million shares of common stock outstanding. Earnings per share for the second quarter of 2024 will be reported on a split-adjusted basis.
About BBSI
BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The Company’s integrated platform is built upon expertise in payroll processing, employee benefits, workers’ compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI’s partnerships help businesses of all sizes improve the efficiency of their operations. The company works with more than 7,500 clients across all lines of business and is licensed to operate in all 50 states. For more information, please visit www.bbsi.com.
Investor Relations:
Gateway Group, Inc.
Cody Slach
Tel 1-949-574-3860
BBSI@gateway-grp.com
FAQ
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Why is BBSI performing a stock split?
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