Summary
Cognizant Technology Solutions Corporation (CTSH) filed an 8-K on February 5, 2014, primarily to announce two significant events. First, the company issued a press release detailing its financial results for the fourth quarter and full fiscal year ended December 31, 2013. While the full details of these results are in the accompanying press release (Exhibit 99.1), this filing serves as the official notification of their release. Second, and notably for investors, the Board of Directors approved a two-for-one stock split of its Class A Common Stock, structured as a 100% stock dividend. This means shareholders of record on February 21, 2014, will receive one additional share for every share they own, effectively doubling their holdings. This action, expected to occur around March 7, 2014, is typically undertaken to increase the stock's liquidity and make it more accessible to a broader investor base.
Key Highlights
- 1Cognizant announced its financial results for the fourth quarter and full fiscal year ended December 31, 2013, via an accompanying press release (Exhibit 99.1).
- 2The company's Board of Directors declared a two-for-one stock split of its Class A Common Stock.
- 3The stock split will be implemented as a 100% stock dividend.
- 4Shareholders of record on February 21, 2014, will receive one additional share for each share held.
- 5The stock distribution is anticipated to occur on or about March 7, 2014.
- 6As of February 3, 2014, there were over 303.8 million shares of Class A Common Stock issued and outstanding.
- 7The filing includes standard forward-looking statement disclaimers regarding the potential for actual results to differ from expectations.