Einhell Germany AG Announces Stock Split to Increase Shareholder Base

Einhell Germany AG has disclosed plans for a stock split aimed at making its shares more affordable and thus increasing its shareholder base. The Landau, Germany-based company proposed a 1:3 stock split, pending approval at the annual general meeting on June 28, 2024. This initiative is part of Einhell's broader strategy to make the shares more accessible to both institutional and general investors.

According to Einhell's CFO, Jan Teichert, this move is expected to reduce the psychological pricing barrier and make the company's stock more attractive, potentially leading to a rise in its market capitalization. The stock split would also result in an increase in the number of shares for existing shareholders without altering the overall value of their holdings.

Alongside the stock split, Einhell has engaged in other capital market strategies, including the commissioning of research studies from notable firms like Warburg Research and Hauck-Aufhäuser/Nuways. Optimism from analysts supports this move, with predictions of strong cash flow and substantial growth potential for Einhell's stock price.

In maintaining its commitment to shareholders, Einhell confirmed that its dividend policy would remain unaffected by the stock split, with ongoing plans to distribute 20-30% of its annual net income in dividends. This strategy underscores Einhell's pledge to maximize shareholder value even as it continues to adapt its approach to meet market demands and investor needs.