HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ: NVEE), a professional and technical engineering and consulting solutions provider, has announced a four-for-one stock split of its common stock. The move aims to make stock ownership more accessible to its employees and to enhance liquidity in the public trading of NV5 stock.
The stock split, approved by NV5's Board of Directors, is expected to increase the total number of outstanding common shares to approximately 65.1 million. The company believes that this action will facilitate stock ownership for current and future employees, particularly those joining NV5 through acquisitions. Additionally, the split is anticipated to attract new investors and allow long-term shareholders the opportunity to augment their holdings.
Dickerson Wright, PE, Executive Chairman at NV5, emphasized the importance of stock ownership in the company's strategy for recruiting and retaining top industry talent, as well as in securing quality companies through mergers and acquisitions. He stated that the stock split is a result of NV5's continuous growth and future expansion plans.
Shareholders on record by the close of the market on October 9, 2024, will receive three additional shares for every share held after the market closes on October 10, 2024. The shares are expected to begin trading on a post-split basis on the Nasdaq Global Select Market at the market open on October 11, 2024.
NV5 operates more than 100 offices nationwide and abroad, offering a diverse range of services across multiple verticals. These include construction quality assurance, infrastructure engineering, utility services, program management, environmental health sciences, and geospatial technology services.
The announcement is based on a press release statement from NV5 Global, Inc. The company has cautioned that forward-looking statements in the release are subject to various factors that could cause actual results to differ materially from those anticipated.
Investors and interested parties are reminded that such forward-looking statements are based on information available on the date of the press release and that the company does not undertake to update these statements unless required by law.
In other recent news, NV5 Global Inc. reported a successful second quarter in 2024, with its backlog expanding to $877 million and an upward revision of its full-year revenue guidance to between $944 million and $950 million. The company is targeting a run rate revenue of $1 billion by the end of 2024. Lake Street Capital Markets maintained its Buy rating for NV5, highlighting the company's performance and predicting a possible $1.5 billion in revenue by 2028.
NV5 Global also secured a significant $290 million contract with the National Geospatial-Intelligence Agency, anticipated to generate around $30 million in revenue for the company. The company also acquired the California Water Resources Group from Weston Solutions, a strategic move expected to recognize revenue by the late third quarter of 2024.
These are recent developments for NV5 Global, indicating robust growth and a promising future. The company's segments, particularly the Geospatial Services and Buildings & Technology, are experiencing strong demand, with plans for further acquisitions to strengthen these sectors. However, these future acquisitions are not included in the current guidance.
InvestingPro Insights
As NV5 Global, Inc. (NASDAQ: NVEE) prepares for its stock split, keen investors are evaluating the company's financial health and market performance for a clearer investment picture. According to real-time data from InvestingPro, NV5 boasts an impressive gross profit margin of 50.88% for the last twelve months as of Q2 2024, signaling strong operational efficiency in its sector. This is further supported by a solid revenue growth of 12.93% over the same period, reflecting the company's ability to expand its market presence and financial capacity.
InvestingPro Tips indicate that NV5 operates with a moderate level of debt, which could be a strategic advantage in pursuing further growth through mergers and acquisitions, aligning with the sentiments expressed by Executive Chairman Dickerson Wright. However, analysts have revised their earnings expectations downwards for the upcoming period, which could be a point of concern for potential investors. Despite this, NV5 is trading at a high earnings multiple with a P/E ratio of 44.07, suggesting that the market may be anticipating future earnings growth.
For those considering an investment in NV5, it's noteworthy that the company is trading near its 52-week low, presenting a potential entry point for long-term investors. The company is also expected to be profitable this year, as per analyst predictions, and has been profitable over the last twelve months, which may offer some reassurance amidst the earnings revisions.
For additional insights and metrics on NV5, including further analyst predictions and historical performance data, investors can explore more InvestingPro Tips at https://www.investing.com/pro/NVEE, where over ten additional tips are available to help inform investment decisions.
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