Old Dominion Freight Line Declares Two-for-One Stock Split

Rhea-AI Summary

Old Dominion Freight Line, Inc. (Nasdaq: ODFL) announces a two-for-one stock split, doubling the number of outstanding shares. The split will be effective on March 27, 2024, with shareholders receiving one additional share for every share held.

Insights

Financial Analyst

The announcement of a two-for-one stock split by Old Dominion Freight Line, Inc. is a strategic move often employed by companies seeking to lower the trading price of their stock to make shares more affordable to a broader base of investors. This can potentially enhance liquidity and marketability of the shares, as lower-priced shares are typically more accessible to retail investors. It's important to note that while a stock split does not inherently change a company's market capitalization, it may lead to a perception of more affordable valuation, which can sometimes result in a positive market reaction.

However, the actual impact on the stock's performance will depend on broader market conditions and the company's fundamentals. Investors will closely monitor the company's operating performance, growth prospects and industry trends to assess the long-term value of their investment post-split. It's also worth considering the psychological aspect, as stock splits can be viewed positively by the market, reflecting confidence from the company's management in its future performance.

Market Research Analyst

A stock split can be a reflection of a company's past success and an optimistic signal about its future. In the case of Old Dominion Freight Line, Inc., the stock split may be indicative of the company's strong performance in the freight and logistics industry. The industry itself is subject to fluctuations based on economic conditions, trade volumes and transportation demand. The doubling of shares outstanding to approximately 217,600,000 will increase the stock's accessibility and could potentially attract more investors, thus broadening the shareholder base.

From a market research perspective, it will be crucial to observe the stock's volume and price movement following the split to gauge investor sentiment. Additionally, the company's strategic positioning within the freight and logistics sector, its competitive advantages and its ability to adapt to changing market dynamics will be key factors determining the long-term impact of the split on its market performance.

THOMASVILLE, N.C.--(BUSINESS WIRE)-- Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today announced that its Board of Directors has approved a two-for-one stock split of its common stock. The split will be effected by issuing one additional share of common stock for every share of common stock held. The additional shares will be distributed by Computershare Trust Company, N.A., the Company’s transfer agent, on March 27, 2024, to shareholders of record as of the close of business on the record date of March 13, 2024. Upon completion of the split, the Company will have approximately 217,600,000 shares outstanding.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as recessions and downturns in the domestic economy, or inflationary periods in which cost escalations may not be recovered through price increases to our customers; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload (“LTL”) industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers’ and suppliers’ businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in U.S. social, political, and regulatory conditions or a disruption of financial markets; (17) the negative impact of any unionization, or the passage of legislation or regulations that could facilitate unionization, of our employees; (18) increases in the cost of employee compensation and benefit packages used to address general labor market challenges and to attract or retain qualified employees, including drivers and maintenance technicians; (19) our ability to retain our key employees and continue to effectively execute our succession plan; (20) potential costs and liabilities associated with cyber incidents and other risks with respect to our information technology systems or those of our third-party service providers, including system failure, security breach, disruption by malware or ransomware or other damage; (21) the failure to adapt to new technologies implemented by our competitors in the LTL and transportation industry, which could negatively affect our ability to compete; (22) the failure to keep pace with developments in technology, any disruption to our technology infrastructure, or failures of essential services upon which our technology platforms rely, which could cause us to incur costs or result in a loss of business; (23) disruption in the operational and technical services (including software as a service) provided to us by third parties, which could result in operational delays and/or increased costs; (24) the Compliance, Safety, Accountability initiative of the Federal Motor Carrier Safety Administration (“FMCSA”), which could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships; (25) the costs and potential adverse impact of compliance with, or violations of, current and future rules issued by the Department of Transportation, the FMCSA and other regulatory agencies; (26) the costs and potential liabilities related to compliance with, or violations of, existing or future governmental laws and regulations, including environmental laws; (27) the effects of legal, regulatory or market responses to climate change concerns; (28) emissions-control and fuel efficiency regulations that could substantially increase operating expenses; (29) expectations relating to environmental, social and governance considerations and related reporting obligations; (30) the increase in costs associated with healthcare and other mandated benefits; (31) the costs and potential liabilities related to legal proceedings and claims, governmental inquiries, notices and investigations; (32) the impact of changes in tax laws, rates, guidance and interpretations; (33) the concentration of our stock ownership with the Congdon family; (34) the ability or the failure to declare future cash dividends; (35) fluctuations in the amount and frequency of our stock repurchases; (36) volatility in the market value of our common stock; (37) the impact of certain provisions in our articles of incorporation, bylaws, and Virginia law that could discourage, delay or prevent a change in control of us or a change in our management; and (38) other risks and uncertainties described in our most recent Annual Report on Form 10-K and other filings with the SEC. Our forward-looking statements are based upon our beliefs and assumptions using information available at the time the statements are made. We caution the reader not to place undue reliance on our forward-looking statements as (i) these statements are neither a prediction nor a guarantee of future events or circumstances and (ii) the assumptions, beliefs, expectations and projections about future events may differ materially from actual results. We undertake no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law.

Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (“LTL”) motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215277649/en/

Adam N. Satterfield

Executive Vice President and

Chief Financial Officer

(336) 822-5721

Source: Old Dominion Freight Line, Inc.

FAQ

What did Old Dominion Freight Line, Inc. (ODFL) announce?

Old Dominion Freight Line, Inc. announced a two-for-one stock split of its common stock.

When will the stock split be effective for ODFL shareholders?

The stock split will be effective on March 27, 2024.

How many shares will ODFL have outstanding after the split?

Upon completion of the split, Old Dominion Freight Line, Inc. will have approximately 217,600,000 shares outstanding.