Covenant Logistics Group Announces Two-For-One Stock Split

Rhea-AI Summary

Covenant Logistics Group (NYSE: CVLG) has announced a two-for-one stock split of its Class A and Class B common stock, aimed at improving stock accessibility for investors and employees. The split will be executed through a stock dividend, with stockholders of record as of December 20, 2024, receiving one additional share for each share held. The distribution is scheduled for December 31, 2024, with split-adjusted trading beginning on January 2, 2025.

The stock split will maintain all existing stockholder voting and other rights. Covenant provides transportation and logistics services across the United States, including asset-based expedited and dedicated truckload capacity, asset-light warehousing, transportation management, and freight brokerage services.

Positive

• Stock split aims to increase stock accessibility and liquidity
• No impact on shareholder voting rights or ownership proportions

Negative

• None.

Insights

Financial Analyst

The two-for-one stock split announcement from Covenant Logistics is a significant corporate action that could enhance stock liquidity and accessibility. While the total market value remains unchanged, the lower post-split price point could attract retail investors and potentially increase trading volume. The split affects both Class A and Class B shares, maintaining the existing voting structure. The timing is strategic, with the record date set for December 20 and trading on split-adjusted basis beginning January 2, 2025. With CVLG's current market cap around $758 million, this move suggests management's confidence in the company's growth trajectory and their desire to broaden the investor base. Stock splits often signal positive sentiment from management and can lead to increased market interest, though the fundamental value proposition remains unchanged.

Market Research Analyst

Stock splits in the transportation sector, particularly for mid-cap companies like Covenant Logistics, typically indicate management's optimism about future growth prospects. The decision to split shares comes at a time when the logistics industry faces evolving market dynamics and consolidation trends. The split could improve trading dynamics by making options contracts more accessible and potentially increasing institutional interest. Historical data suggests that companies executing stock splits often experience increased retail investor participation and improved trading metrics in the months following the split. For Covenant, this move could enhance its visibility in the competitive logistics space and potentially facilitate future capital raising efforts if needed.

CHATTANOOGA, Tenn., Dec. 06, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) (“Covenant” or the “Company”) announced today that its board of directors has declared a two-for-one stock split of Covenant’s Class A common stock and Class B common stock to make Covenant’s stock more accessible to investors and employees. The stock split will be effected by means of a stock dividend to the holders of record of Covenant’s Class A common stock and Class B common stock as of the close of business on December 20, 2024, the record date for the dividend.

As a result of the dividend, each holder of a share of Covenant’s Class A common stock will receive one additional share of Class A common stock and each holder of a share of Covenant’s Class B common stock will receive one additional share of Class B common stock. In each case, the shares are expected to be distributed after the close of trading on December 31, 2024. Trading is expected to commence on a split-adjusted basis at market open on January 2, 2025. The stock dividend will not have any impact on the voting and other rights of stockholders.

About Covenant
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. Primary services include asset- based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capability. In addition, Transport Enterprise Leasing is an affiliated company providing revenue equipment sales and leasing services to the trucking industry. Covenant's Class A common stock is traded on the New York Stock Exchange under the symbol, “CVLG.”

For further information contact:

Paul Bunn, President
PBunn@covenantlogistics.com

Tripp Grant, Chief Financial Officer
TGrant@covenantlogistics.com

For copies of Company information contact:

Brooke McKenzie, Executive Administrative Assistant
BMcKenzie@covenantlogistics.com

FAQ

When will Covenant Logistics Group (CVLG) stock split take effect?

The stock split will be distributed after market close on December 31, 2024, with split-adjusted trading beginning on January 2, 2025.

What is the ratio of Covenant Logistics Group (CVLG) stock split?

Covenant Logistics Group announced a two-for-one stock split, meaning shareholders will receive one additional share for each share held.

What is the record date for Covenant Logistics Group (CVLG) stock split?

The record date for the stock split is December 20, 2024. Shareholders must own the stock by this date to receive the split shares.

Will the CVLG stock split affect shareholder voting rights?

No, the stock split will not have any impact on voting rights or other rights of stockholders.