After months of delays, Under Amour (NYSE:UAA) stock has finally split. In this segment from the Motley Fool Money radio show, Chris Hill, Andy Cross, and Jason Moser talk about why the stock split the way it did, what it means for shareholders, and why you don't need to worry about taking any action.
A transcript follows the video.
This podcast was recorded on April 8, 2016.
Chris Hill: Shares of Under Armour in the spotlight on Friday as the company split its stock 2-for-1. Shareholders will get a new, non-voting class of stock. Andy, we're seeing a little bit more of this move, aren't we?
Andy Cross: Yeah, especially among founding firms with founders who are still leading it, like Google and Zillow, which we've seen recently in the past couple years. And now, Under Armour, you split the stock essentially by getting a new class of shares. Those new class of shares don't have voting power. So, essentially, you still have the same ownership you had before in Under Armour, but this way, it just allows Kevin Plank to continue to maintain his ownership over Under Armour, run the strategy the way he wants to long term.
Jason Moser: Sure thing. We've fielded a number of questions this morning on this, and the action that you need to take if you're an Under Armour shareholder is to take no action whatsoever. Just let this go, and as Andy mentioned, it's the same stock, same company as it was when you went to bed last night. You still have that same vote, and Kevin Plank is still going to have his hold on the company. I think he's done a pretty good job at this point. I'm happy to stick on this ride and see how it works out.
Cross: Yeah, I wouldn't be surprised if we saw more of this. It allows these firms that are run by these visionary leaders who want to have control of the company. I wouldn't be surprised to see this continue in the future.