The mania of stock splits is not quite as fast and furious as it was earlier in June on the split calendar, but we are still seeing some key splits on the docket which are set to take effect. The splits featured are only in the true splits rather than including the myriad of companies forced to enter into reverse stock splits in order to maintain listing requirements. These are all challenging all-time highs or multi-year highs as you would expect.
During the month of July, we still have stock splits coming from the following:
- Lululemon Athletica Inc. (NASDAQ: LULU);
- ONEOK Partners, L.P. (NYSE: OKS);
- Triumph Group, Inc. (NYSE: TGI);
- Sun Hydraulics Corp. (NASDAQ: SNHY);
- and Clean Harbors, Inc. (NYSE: CLH).
Lululemon Athletica Inc. (NASDAQ: LULU) is one phenomenal stock and is fastly becoming a yoga-monopoly along with being a sports apparel winner. It is also one that we expected the split to take effect in June before it updated its calendar at the end of last month. This will also mark the first split for Little-Lulu. We now have an ex-date of July 12 to reflect its 2-for-1 stock split. Shares just hit a new all-time high yet again of $123.50 on Thursday. Here is some food for thought: LULU has risen so much since it announced its split that the company should have considered announcing a 3-for-1 split rather than just a 2-for-1 split.
ONEOK Partners, L.P. (NYSE: OKS) is also set to go ex-split next week. This 2-for-1 split, rare considering it is a limited partnership, will have an ex-date of July 13. This was announced on June 7. Shares just hit another all-time high of $87.00 on Thursday. This one carries a market-premium as far as what is an implied dividend yield (capital distribution) compared to common stocks. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) and it owns 42.8% of the overall partnership interest. As a reminder, that is pronounced as “One-Oak” rather than “On-ee-okk” as many call it.
Triumph Group, Inc. (NYSE: TGI) is the aircraft components player rather than the maker of old unreliable cars and it certainly isn’t an old rock group. Its 2-for-1 split is set to reflect the early June announced split with an ex-date of July 15.
Sun Hydraulics Corp. (NASDAQ: SNHY) is thinly traded enough and now high-priced enough for a stock of its sort that many investors may have forgotten all about it. Those who stuck with this hydraulic systems player are glad they stayed. With shares close to $50.00, this one has been a screaming stock in the last year and in the year before that. This recently hit all-time highs. Its ex-date to reflect its 3-for-2 split is July 18.
Clean Harbors, Inc. (NYSE: CLH) is a $100+ environmental remediation player and it has also performed well with shares hitting an all-time high of $110.30 just this Thursday. This appears to be the company’s first stock split ever and that 2-for-1 split will have an ex-date late in the month on July 27.
Stock splits usually occur when company shares are at all-time highs or at least at multi-year highs. What is interesting is that many companies today are refusing to embrace the old stock split game. There are literally about 15 or 20 high-profile splits that could come down the pipe in the future if those companies decide to loosen up on having that mystique of a higher share price.
JON C. OGG