Thor Industries Inc.’s stock will open today’s (Jan. 27) New York Stock Exchange trading session at around $30.92 a share because a 2-for-1 split of the company’s stock took effect after the close of trading Monday (Jan. 26).
Thor stock closed at $61.85 a share on Monday.
The split means the number of outstanding Thor shares was doubled to around 57.6 million.
Thor’s Board of Directors also has given the company’s management authorization to increase the number of outstanding shares to as much as 250 million so the stock can be used as currency for possible future acquisitions.
The theory behind a stock split is that because more investors can afford to buy a stock that trades at a lower share price, demand should push up the stock price somewhat after the split.
Thor also completed a 2-for-1 split in July 2002. Its stock closed at $71.97 a share on July 8, 2002, the day before the split became effective. Since then, Thor’s stock has climbed as high as $66.55 a share but has fallen back slightly in recent months.
Thor now is the highest volume RV producer because it dominates the travel-trailer/fifth-wheel sector. It had a 29.7% retail market share in travel trailers and fifth-wheels during the first 11 months of 2003, almost double Forest River Inc., its closest competitor, which had a 15.2% share in the same period, according to Statistical Surveys Inc. an independent market research firm.
Thor also builds motorhomes and midsize buses. Among its best-known RV brands are Airstream, Damon, Dutchmen, Four Winds, Keystone and Komfort.