Shares of National Beverage (FIZZ) - Get Report were rising Friday after the LaCroix maker said it would enact a 1-for-1 stock split after its stock was impacted by the WallStreetBets-led retail mania that led to the rise of heavily-shorted stocks such as GameStop (GME) - Get Report and AMC Entertainment (AMC) - Get Report.
"With the recent increased market participation by smaller and/or individual investors, we believe this Board action today will enhance market liquidity and provide opportunistic long-term value growth for a wider range of investors,” a company spokesperson said in a statement.
Shares of the Fort Lauderdale, Fl., company rose 1.43% to $112.10 during trading. The stock is up over 78% in 2021 and was part of the short squeeze frenzy that started in January.
WallStreetBets had been trying to collectively push shares of these companies higher in a bid to force hedge funds and other large investors to abandon and cover their short positions -- bets that stock prices will decline -- in those companies.
National Beverage will split its stock in the form of a stock dividend.
The dividend will be distributed on Feb. 19 to holders of record on Feb. 16. Trading will begin on a split-adjusted basis on Feb. 22.
“This stock dividend reaffirms National Beverage Corp.’s commitment to its shareholders,” a company spokesperson added.
“Over the past 20 years, a FIZZ holder who reinvested all dividends would have multiplied their initial investment by more than 80 times. After the $6 a share cash dividend paid January 29, we have returned $20.56 a share, or nearly $1 billion, to FIZZ holders," the company said.
The company said it will announce financial results for its third quarter ended Jan. 30 on or before Mar. 11.