FAIRFIELD -- Vehicle salvage and reseller Copart, Inc. (NASDAQ: CPRT) announced today that the company's board of directors has approved a two-for one split of its common stock, a change that will double the number of shares to approximately 126.8 million.
The decision to split the stock was made to obtain wider distribution and greater liquidity, said Chief Executive Officer A. Jayson Adair, in a statement.
The change, which will give each stockholder of record one additional share of common stock for each owned, will occur at the close of trading March 28 and affect shareholders of record as of March 23.
Adjustments will be made to shares subject to awards and reserves under the company's equity-incentive plans, and the number of shares authorized for repurchase under a previously announced share-repurchase program will be adjusted to reflect the split in the form of a dividend.
Founded in 1982, Fairfield-based Copart provides services to process and sell salvage and clean titled vehicles. The company sells vehicles on behalf of insurance companies, fleet dealers and other entities. The company has 154 facilities in the United States, Canada and the United Kingdom.
The company is shifting its headquarters functions from Fairfield. In February, the company announced it was setting up divisional processing centers in Prairie, Texas, and Hartford, Conn., as well as in Fairfield.
The price of Copart stock increased 46 cents a share, or nearly 1 percent, to $51.62 at the end of trading today.