DALLAS - United States Lime & Minerals, Inc. (NASDAQ:USLM), a manufacturer of lime and limestone products, announced today its intention to conduct a five-for-one stock split. The move will be executed as a stock dividend, offering four additional shares for each share currently held by investors.
The company's Board of Directors has decided to proceed with the split following a considerable increase in the per-share trading price over recent years.
The aim of the split is to make the company's shares more accessible to a broader range of investors and employees, as well as to improve the liquidity of the stock. United States Lime & Minerals anticipates that the stock split will also help to narrow the bid-ask spread for its shares.
Shareholders on record as of the close of business on June 21, 2024, will be eligible to receive the stock dividend. The additional shares are scheduled to be distributed after the market closes on July 12, 2024. Following the split, the company's stock will begin trading on a post-split basis from the market open on Monday, July 15, 2024, under the existing ticker symbol USLM.
The company, which operates lime and limestone plants across several states, will see its outstanding shares increase from approximately 5.7 million to around 28.5 million as a result of the split.
United States Lime & Minerals serves a diverse set of industries, ranging from construction and industrial to metals, environmental, and agriculture, through its wholly owned subsidiaries. The company also holds royalty and non-operated working interests in natural gas wells within the Barnett Shale Formation in Texas.
The announcement contains forward-looking statements regarding the expected impact of the stock split. United States Lime & Minerals has clarified that these projections are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. The company has indicated that it will not be updating or revising any forward-looking statements and advises investors to consider the risks as detailed in its filings with the Securities and Exchange Commission.
This news is based on a press release statement from United States Lime & Minerals, Inc.
InvestingPro Insights
As United States Lime & Minerals, Inc. (NASDAQ:USLM) gears up for a stock split to enhance accessibility and liquidity, investors are eyeing the company's financial health and market performance with keen interest. To provide a deeper understanding of USLM's current market position, here are some insights based on real-time data from InvestingPro.
InvestingPro Data indicates that USLM holds a market capitalization of $2.05 billion, reflecting the company's substantial size within its industry. The company's P/E ratio stands at 26.22, with a slight adjustment to 26.09 when considering the last twelve months as of Q1 2024.
This ratio suggests that the stock is being traded at a value that is in line with its earnings. A PEG ratio of 0.55 for the same period shows that the stock may be undervalued relative to its earnings growth, signaling potential for investors.
From a performance perspective, USLM has seen a significant return over the last week, with a price total return of 10.09%. This is complemented by a strong return over the last year, with an impressive 105.78% increase. Additionally, the stock is trading near its 52-week high, at 97.6% of the peak price, which may indicate strong investor confidence and market momentum.
InvestingPro Tips highlight that USLM holds more cash than debt on its balance sheet, providing the company with a solid financial footing. Another tip to consider is that USLM is currently trading at a high Price/Book multiple of 5.02, which could suggest that the market is assigning a higher value to the company compared to its book value.
For those looking to delve deeper into the financial intricacies of United States Lime & Minerals, InvestingPro offers additional tips and insights. In fact, there are 14 more InvestingPro Tips available at InvestingPro, which could further guide investment decisions. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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