After three years with its shares hovering around $2, The Phoenix Cos. Inc. said it will execute a 1-for-20 reverse stock split in August for its common stock.
"We believe this is the right time for a reverse stock split, which will reduce administrative costs and improve our ability to interact with our shareholders. We also believe the resulting increase in share price will improve the perception of our common stock, which goes hand-in-hand with the substantial progress we have made in our business fundamentals and operating performance," said James D. Wehr, president and chief executive officer.
Phoenix expects the split to happen after the close of trading on August 10, 2012. Stockholders will hold one share for every 20 they now own, and the total outstanding will drop from 116.3 milion to 5.8 million, Phoenix said. The stock symbol will remain PNX, and shareholders will receive cash in lieu of fractional shares.
Since its near-collapse in early 2009, Phoenix under Wehr has slowly rebuilt parts of its franchise. But shares Friday afternoon were trading at $1.84, roughly the midpoint of the 52-week range.