Under Armour (NYSE:UA) unveiled plans on Monday for a two-for-one stock split later this summer in an effort to broaden the athletic wear company’s investor base.
Red-hot shares of Baltimore-based Under Armour rose more than 1% to eclipse $104 in premarket action in the wake of the announcement, which marks the company’s first stock split since going public in November 2005.
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Under Armour said the stock split will take place in the form of a dividend of one share of Class A common stock for each one outstanding and the same for Class B shares.
The company said the stock split will be distributed around July 9 to shareholders of record on June 25.
"We are proud of the value we have delivered to our stockholders over the long-term, and we believe this stock split may broaden our investor base and improve the trading liquidity of our stock,” CEO Kevin Plank said in a statement.
The stock split could also pave the way for Under Armour’s entrance into the S&P 500, Dow Jones Newswires pointed out. With a market cap north of $5 billion and annual revenue of about $1.5 billion, Under Armour would seemingly fit right into the broad index.
Shares of Under Armour, which have surged 44% so far this year, were recently up 1.39% to $104.75.