Time New York: Tue 19 Sep 11:27 am  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Manitowoc (MTW) Announces Plans for Reverse Stock Split

Zacks

The manufacturer of cranes and lift solutions, The Manitowoc Company, Inc. MTW announced its plans of a reverse stock split. Following this, shares of the company lost more than 1% at the close of trade on Sep 14.

The company plans to put into effect the reverse stock split at a ratio of 1-for-4 of its shares, which will reduce the number of shares from 300 million to 75 million. Also the reverse stock split, which is subject to market and other customary conditions, is expected to increase the prices of its shares.

With implementation of the reverse stock split, every four shares of the company’s common stock will be combined into one. Under the reverse split, fractional shares will not be issued. However, shareholders will receive a cash payment in lieu of fractional shares.

Manitowoc Company, Inc. (The) Price

Manitowoc Company, Inc. (The) Price | Manitowoc Company, Inc. (The) Quote


Manitowoc will hold a special meeting in the fourth quarter to seek approval for the reverse stock split and authorized share reduction. Holders of record of Manitowoc’s shares as on Sep 29 will be entitled to receive the notice and to vote for the reverse stock split. The proposal will be approved if two-third of the entitled voters are in affirmation.

Manitowoc will utilize its solid balance sheet to allocate capital for most accretive options such as de-leveraging, organic investments, stock buybacks and external growth. While near-term market conditions remain difficult, the company’s long-term outlook remains strong.

Year to date, Manitowoc has outperformed the industry it belongs to. The company’s shares gained have around 35.5% during this period compared with 27% growth recorded by the industry.



Zacks Rank & Other Stocks to Consider

Currently, Manitowoc carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the sector include Caterpillar Inc. CAT, Terex Corporation TEX and Komatsu Ltd. KMTUY. All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Caterpillar has an expected long-term earnings growth rate of 9.5%.

Terex has an expected long-term earnings growth rate of 19.7%.

Komatsu has an expected long-term earnings growth rate of 12.7%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.