Hormel Foods, whose stock symbol on the New York Stock Exchange is HRL, has split its stock nine times in its 124-year history and once since 2010. The company's most recent split, a two-for-one split, was announced on Nov. 25, 2015, and the firm's shareholders intend to consider this split at their annual meeting on Jan. 26, 2016. In a two-for-one split, 100 shares of a firm's stock become 200 once the split is complete.Continue Reading
Hormel Foods' first stock split was a two-for-one split that occurred on Feb. 21, 1990. The second split also had a two-for-one structure, and it took place on Feb. 16, 2000. Following this pattern, the firm's third split, on Feb. 15, 2011, was a two-for-one split. Assuming he did not sell them, an investor who held 100 shares in 1989 would have held 800 shares by March 2011. With the 2016 split, those original 100 shares could therefore become 1,600 shares.
Stock splits are often designed to attract new investors to a firm, as the price of a share of stock is typically lower once a split completes. With lower-priced shares, investors who could not previously afford the stock can subsequently buy into the company.Learn more about Corporations