APi Group Corporation (NYSE:APG), a provider of commercial life safety and industrial services with a market capitalization of $10 billion, disclosed in a recent SEC filing that its Board of Directors has approved a stock dividend. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 1.51, indicating healthy short-term financial stability. The dividend, amounting to 2,543,662 shares of common stock, is tied to the company’s Series A preferred stock, which totals 4,000,000 shares.
This action follows the terms of the Series A preferred stock, which stipulate an "annual dividend amount" payable if the volume weighted average share price exceeds a certain threshold. For the last ten trading days of 2024, the average share price was $37.3070, surpassing the highest price used for the 2023 annual dividend calculation of $33.9465.
As a result, the Board chose to settle the 2024 annual dividend in shares of common stock, which were issued on Thursday, January 2, 2025. This issuance brings the total outstanding shares of APi Group’s common stock to 277,321,989.
The company, headquartered in New Brighton, Minnesota, operates under the trade and services sector, specifically providing services to dwellings and other buildings.
InvestingPro data reveals the company generated $737 million in EBITDA over the last twelve months, with analysts setting a high price target of $50 per share. InvestingPro subscribers have access to 8 additional key insights about APG’s financial health and growth prospects. This recent financial maneuver reflects the company’s adherence to the terms of its preferred stock and its commitment to shareholder returns.
APi Group’s decision to distribute the dividend in stock rather than cash may reflect an intention to preserve cash for other uses, such as reinvestment in the company’s operations or potential acquisitions. Based on InvestingPro’s comprehensive analysis, the company’s overall financial health is rated as GOOD, with particularly strong scores in growth potential. For detailed insights into APi Group’s valuation and future prospects, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
The information provided in this article is based on a press release statement filed with the SEC.
In other recent news, APi Group Corporation has reported encouraging growth in its third-quarter earnings. The company saw a 2.4% year-over-year increase in revenue, reaching $1.83 billion, primarily driven by organic growth in the Safety Services segment.
Adjusted EBITDA also rose by 9.4%, and the company remains committed to achieving a 13% adjusted EBITDA margin by 2025. In addition, APi Group reported an adjusted gross margin increase to 31% and adjusted diluted earnings per share growth to $0.51.
Furthermore, Baird has increased the stock price target for APi Group to $40 from the previous target of $39, maintaining an Outperform rating. This adjustment follows Baird’s evaluation of APi Group’s recent acquisition of an elevator maintenance division, which is expected to diversify the company’s services and provide a new platform for mergers and acquisitions.
In other company news, APi Group’s full-year 2024 revenue guidance has been revised to $7 billion, with adjusted EBITDA expected to fall between $890 million and $900 million.
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