Coca-Cola (NYSE:KO) shareholders on Tuesday gave their nod of approval for a 2-for-1 stock split proposed back in April.
With the OK, outstanding shares of Coca-Cola stock will double from roughly 2.26 billion to 4.52 billion in early August, as shareholders receive an extra share for every share they already own. And the price of KO will be halved — from today’s $76, it would go to about $38.
Coca-Cola’s proposed split came amid expectations of rampant growth — the board in April said the company expects to double revenues. Investors reacted positively to the news with a 1% bump the day of the announcement, and KO shares have gained about 5% since then, easily beating a down market.
The last time Coca-Cola performed a stock split — 16 years ago — the company’s shares got a 2.5% boost on the day of the split, gaining 40% in the year afterward.
KO shares were up fractionally on the news Tuesday.
– Kyle Woodley, InvestorPlace Assistant Editor