The Coca-Cola Co. is reportedly planning for stock split, which would double the number of shares trading in the market. The two for one split will be carried out to cater for the extraordinary high stock prices for the company’s stock. Coca-cola has been trading its stock for almost a century now and the company has achieved huge success in the global market. The reputation of the company and sustained growth have led to huge rise in its stock price.
The company is still in a good position regarding its sales and has expanded its operations in various new markets. The company is having revenue growth especially in India and China.
The stock split option will be presented to the shareholders on July 10 and they will vote for or against it. Analysts say that if the stock split takes place, the stock price for the split stock would also rise. This would also help the company to maintain its liquidity.
The company’s management says that this step has been planned in the best interest of the company. “Our recommended two-for-one stock split reflects the Board of Directors’ continued confidence in the long-term growth and financial performance of our Company. Our system’s 2020 Vision to double our revenues over this decade provides a clear roadmap for creating value for our consumers, customers, bottling partners and shareowners. A stock split reflects our desire to share value with an ever-growing number of people and organizations around the world,” Muhtar Kent, chairman and CEO of The Coca-Cola Company, said in his comments as reported at Yahoo Finance.
The company has been seeing a continuous growth and increase in the revenues for a long time and the management is hopeful for future profitability as well. This stock split aims to benefit various stakeholders of the company. The step is being taken positively by analysts as well. Therefore, there is a great chance of its approval by the existing shareholders.
The largest beverage company in the world is now focusing on its strategy to remain at the top position in the tough competition in future as well. The recent earnings are also showing an encouraging situation for the business that makes it even more attractive for investors. They already have trust on the company’s stock that is usually at a high level.