OUTFRONT Media Inc. (OUT), a real estate investment trust specializing in outdoor advertising with a current market capitalization of $2.9 billion and trading at $17.48 per share, announced a reverse stock split of its common stock today. According to InvestingPro data, the company maintains a healthy 6.82% dividend yield and trades at an attractive P/E ratio of 12.5. The reverse split is set at a ratio of 1-for-1.024549 and will be effective on January 17, 2025. This action will reduce the number of outstanding shares from approximately 170 million to about 166 million.
The company's board of directors approved the reverse split to counteract the dilutive effect of a special dividend paid on December 31, 2024. The number of authorized shares and the par value per share will remain unchanged following the split. InvestingPro analysis reveals the company maintains a GOOD overall financial health score, with particularly strong performance in growth and profitability metrics. OUTFRONT’s common stock will continue to be listed on the New York Stock Exchange under the ticker symbol "OUT," albeit with a new CUSIP number, 69007J-304.
Shareholders will receive one share for every 1.024549 shares they held before the reverse stock split. The total number of outstanding shares post-split will closely align with the number prior to the special dividend. Shareholders who would otherwise hold fractional shares as a result of the reverse stock split will receive a cash payment instead.
This corporate action is part of OUTFRONT Media's financial strategy, as detailed in a recent SEC filing. The reverse stock split aims to consolidate shares and potentially increase the market price of the remaining shares. It is a common tactic used by companies to manage the effects of dividend payments and other corporate financial strategies on their stock price and shareholder value.
For deeper insights into OUTFRONT Media's valuation and financial metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to detailed financial health scores and over 10 additional ProTips for this stock.
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