Caremark Inc., a Newport Beach health-care firm, declared a 3-for-2 stock split of its 15.3 million outstandings shares of common stock, payable to shareholders of record on Feb. 20. The split is to be effective March 6, when the company will distribute one new share of stock for every two shares a stockholder owns.
Caremark said it will pay stockholders cash for any resulting fractional shares based on the $30.75 closing price of Caremark common stock on Feb. 5, the day before the company notified the Securities and Exchange Commission of the split, a spokesman said.
Caremark offered the split to reduce the market price of the company's common stock in order to attract individual investors, the company said.
On Monday, the day the split was announced, the company's stock closed at $30.875, up 75 cents per share.