Honeywell, DuPont reverse stock splits at 1-for-2 and 1-for-3 ratios

Honeywell and DuPont will execute reverse stock splits at 1-for-2 and 1-for-3 ratios as part of corporate restructurings that reshape share counts at both industrial companies.

"The approval clears the path to establishing two independent industry leaders in Honeywell Aerospace and Honeywell Technologies," Honeywell Chairman and Chief Executive Officer Vimal Kapur said in a statement. The reverse split takes effect immediately after the aerospace spin-off closes.

DuPont's 1-for-3 reverse split is effective 12:01 a.m. ET on June 24, with a new CUSIP 26614N 201 and cash in lieu of fractional shares handled through Computershare. Honeywell follows with a 1-for-2 reverse split at 12:02 a.m. ET on June 29, cutting shares outstanding to about 317 million from 634 million. The larger event for Honeywell holders is the spin-off itself: one Honeywell Aerospace share for every two Honeywell shares held, with a June 15 record date and distribution expected June 29. The distribution is expected to be tax-free for U.S. federal income tax purposes. Honeywell Aerospace will trade under the ticker HONA on the Nasdaq, while Honeywell Technologies retains the HON ticker.

A reverse split does not change the value of holdings. Investors will hold fewer shares at a proportionally higher price, with proportionate ownership unchanged. Both moves recalibrate per-share prices after divestitures so the remaining businesses trade in an institutionally normal range. Honeywell shares trade near $229, up 17.6% year to date, with a market capitalization of about $144.1 billion. DuPont trades near $48, up 74.3% over the past year. Honeywell Technologies, the post-split automation company, generates roughly $17 billion in annual revenue, with 40% already coming from services and software. The company also holds a 47% stake in Quantinuum, the quantum computing firm that completed its initial public offering in early June, valued at approximately $7 billion on Honeywell's books.

The reverse splits show both companies expect their remaining shares to trade at prices attractive to institutional investors. Honeywell's next catalyst is the June 29 spin-off completion and the start of when-issued trading under HONAV.

This article is for informational purposes only and does not constitute investment advice.