Investors who saw The Andersons Inc. stock price drop dramatically Wednesday need not worry.
The Maumee-based agribusiness announced Dec. 19 its board of directors had approved a three-for-two stock split of its common stock. The split took place after the market closed Tuesday.
So an investor who owned 10 shares Tuesday received five additional shares, for a total of 15.
In December, the company said it expected the stock split to boost the number of shares outstanding from 18.8 million to about 28.2 million.
Naturally, each share dropped in value.
The stock closed at $81.22 a share Tuesday and $53.49, Wednesday.
So an investor who owned 10 shares on Tuesday would have owned $812.20 worth of Andersons stock. At the end of the day Wednesday, that investor would have owned 15 shares worth $802.35. In effect, the stock fell 1.2 percent on Wednesday, a fairly typical amount for the stock to rise or fall on a given day.
A year ago, The Andersons stock was trading at less than $50 a share. It peaked at more than $92 a share in December.
Company officials said motivation for the stock split was to put more liquidity — the ease with which a stock can be bought or sold without greatly affecting its price — back into The Andersons’ stock.