FORT WORTH, Texas - CorVel Corporation (NASDAQ: CRVL), a provider of healthcare management solutions with a market capitalization of $6 billion and impressive year-to-date returns of over 43%, announced today that its Board of Directors has approved a three-for-one forward stock split. The company also confirmed a proportionate increase in the number of authorized shares of its common stock. This move does not affect the number of authorized shares of preferred stock.
The forward stock split is contingent upon an amendment to the company's Fourth Amended and Restated Certificate of Incorporation, which the company expects to file with the Secretary of State of the State of Delaware on December 24, 2024. Following the amendment's effectiveness, each common stock share held on the record date of December 23, 2024, will be converted into three shares of common stock.
Michael G. Combs, President, CEO, and Chairman of CorVel, stated that the decision for the stock split is based on the company's significant stock price growth over the past years, attributed to robust financial performance and strategic initiatives. According to InvestingPro data, the company has demonstrated strong momentum with a 50% return over the past year and revenue growth of nearly 13%. However, analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 74. The split aims to make the company's stock more accessible to potential investors while continuing to deliver enhanced technological solutions for healthcare management.
Subject to the final approval by the Nasdaq Global Select Market, the stock is expected to begin trading on a post-split adjusted basis at the opening of the market on December 26, 2024.
The company's press release includes forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ from those projected. InvestingPro subscribers can access 11 additional key insights about CorVel's financial health, which currently rates as GREAT based on comprehensive analysis of growth, profitability, and momentum metrics. These include the timing and implementation of the stock split and increase in authorized shares, as well as the commencement of post-split trading. Investors are cautioned to consider the risk factors outlined in CorVel's Annual Report and other SEC filings.
This announcement is based on a press release statement from CorVel Corporation.
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