Orange County Bancorp (NASDAQ:ICBK), Inc. (NASDAQ:OBT), a Delaware-incorporated state commercial bank with a market capitalization of $292 million, has declared a two-for-one forward stock split of its issued common stock. The split was effected through an amendment to the company's Certificate of Incorporation, which doubled the number of authorized common stock from 15 million to 30 million shares.
This amendment was filed with the Secretary of State of Delaware and became effective at 4:01 p.m. Eastern Time today. According to InvestingPro, the bank maintains a solid dividend track record, having maintained payments for 17 consecutive years.
The company's common stock, currently trading at $51.53, is expected to begin trading on a split-adjusted basis when the market opens on January 13, 2025. This move is a strategic alteration to the company's capital structure. Based on InvestingPro's Fair Value analysis, the stock appears slightly overvalued at current levels, with analyst price targets ranging from $65 to $71.
The stock split does not alter the proportionate equity interests or voting rights of shareholders, as it is a mechanical adjustment to the number of shares outstanding and the share price. Existing shareholders will receive one additional share of common stock for each share they own, with the share price adjusted accordingly on the Nasdaq Stock Market.
No financial statements or pro forma financial information are required to be filed in connection with this corporate action. The amendment to the Certificate of Incorporation, as documented in Exhibit 3.1, is attached to this report for reference.
In other recent news, Orange County Bancorp has seen significant developments. Piper Sandler, a financial services firm, increased its stock price target for the company's shares to $71 from $66, reiterating an Overweight rating. This decision reflects the company's impressive momentum and potential as an attractive investment. The financial services firm also revised its outlook on Orange County Bancorp, reducing the price target from $69.00 to $66.00, following a significant loan loss provision that impacted the company's earnings per share (EPS) for the third quarter of 2024.
In other recent developments, Orange County Bancorp announced a rise in its quarterly cash dividend to $0.25 per share, indicating a robust financial health and commitment to its shareholders. The company also reported an EPS of $0.57 for the third quarter of 2024.
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