NextEra Energy (NYSE:NEE) has announced a stock split set to take place next month.
Here’s what NEE stock investors need to know about the split.
- A four-for-one stock split was approved by the company’s Board of Directors.
- This split will take place on Oct. 26, 2020, with each holder of NEE stock receiving three extra shares per share.
- The stock will then start trading on the stock-adjusted basis when markets open the following day.
- Shareholders of NEE stock must be on record as of Oct. 19, 2020 to receive the extra shares from the stock split.
- NextEra Energy says the goal of the stock split is to open its shares up to a broader range of investors.
- To go along with the stock split, the company has updated its adjusted earnings per share guidance.
- It’s now expecting adjusted EPS for 2020 to range from $2.18 to $2.30 and 2021 adjusted EPS to come in between $2.40 to $2.54.
- For 2022, the company expects adjusted per-share earnings of $2.55 to $2.75 and $2.77 to $2.97 for the following year.
- Wall Street’s current guidance has it expecting an adjusted EPS of $9.12 in 2020 and $9.88 in 2021.
- When taking account for the split, this has analysts looking for adjusted EPS of $2.28 and $2.47 for 2020 and 2021, respectively.
Jim Robo, chairman and CEO of NextEra Energy, said this about the news.
“The market for low-cost renewables continues to rapidly expand, and we believe our best-in-class development skills leave us uniquely positioned to capitalize on these significant investment opportunities.”
NEE stock was up 4.4% as of Tuesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.