filings.toolsItem 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
On December 23, 2015 the Company completed the Reclassification of its dual-class common stock into a single class of Common Stock. See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Reclassification of Common Stock. Trading in the Class A common stock and Class B common stock ceased after markets closed on December 23, 2015 and trading in the Company's single class of Common Stock commenced on the New York Stock Exchange ("NYSE") on December 24, 2015. The Company’s Common Stock is principally traded on the NYSE. Prior to the Reclassification the Company's Class A common stock traded under the symbol “HUB.A” and the Company's Class B common stock traded under the symbol “HUB.B”. The Common Stock, resulting from the Reclassification, trades under the symbol "HUBB".
The following tables provide information on market prices, dividends declared, number of common shareholders, and repurchases by the Company of shares of its Class A common stock, Class B common stock, and the Common Stock resulting from the Reclassification.
| Market Prices (Dollars Per Share) | Class A Common | Class B Common | Common Stock | ||||||||||||
| Years Ended December 31, | High | Low | High | Low | High | Low | |||||||||
| 2015 — Fourth quarter (After the Reclassification) | — | — | — | — | 104.47 | 99.60 | |||||||||
| 2015 — Fourth quarter (Prior to Reclassification) | 128.17 | 108.12 | 100.73 | 83.85 | — | — | |||||||||
| 2015 — Third quarter | 122.02 | 91.67 | 109.40 | 80.33 | — | — | |||||||||
| 2015 — Second quarter | 118.84 | 105.48 | 112.84 | 107.37 | — | — | |||||||||
| 2015 — First quarter | 113.02 | 104.50 | 117.03 | 102.01 | — | — | |||||||||
| 2014 — Fourth quarter | 131.60 | 105.27 | 127.29 | 101.44 | — | — | |||||||||
| 2014 — Third quarter | 129.50 | 120.22 | 126.96 | 115.34 | — | — | |||||||||
| 2014 — Second quarter | 125.68 | 104.20 | 125.40 | 112.71 | — | — | |||||||||
| 2014 — First quarter | 114.00 | 94.24 | 122.55 | 106.47 | — | — | |||||||||
| Dividends Declared (Dollars Per Share) | Class A Common | Class B Common | Common Stock | ||||||||||||
| Years Ended December 31, | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||
| Fourth quarter | 0.63 | 0.56 | 0.63 | 0.56 | — | — | |||||||||
| Third quarter | 0.56 | 0.50 | 0.56 | 0.50 | — | — | |||||||||
| Second quarter | 0.56 | 0.50 | 0.56 | 0.50 | — | — | |||||||||
| First quarter | 0.56 | 0.50 | 0.56 | 0.50 | — | — | |||||||||
| Number of Common Shareholders of Record | |||||||||||||||
| At December 31, | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||
| Class A | — | 369 | 394 | 426 | 458 | ||||||||||
| Class B | — | 2,093 | 2,225 | 2,389 | 2,549 | ||||||||||
| Common Stock | 2,548 | — | — | — | — |
Our dividends are declared at the discretion of our Board of Directors. In October 2015, the Company’s Board of Directors approved an increase in the common stock dividend rate from $0.56 to $0.63 per share per quarter. The increased quarterly dividend payment commenced with the December 15, 2015 payment made to the shareholders of record on November 30, 2015.
| 14 | HUBBELL INCORPORATED - Form 10-K |
Purchases of Equity Securities
On August 23, 2015, our Board of Directors approved a stock repurchase program that authorized the repurchase of up to $250 million of Common Stock (the "August 2015" program). When combined with the $141.4 million of remaining share repurchase authorization under the program approved by our Board of Directors in October 2014 (the "October 2014" program), as of December 31, 2015 we have a total remaining share repurchase authorization of $391.4 million. The October 2014 and August 2015 programs expire in October of 2017. Subject to numerous factors, including market conditions and alternative uses of cash, we intend to conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. Subject to these factors, we expect to repurchase up to $250 million of Common Stock in 2016.
The following table summarizes the Company's repurchase activity of Common Stock during the quarter ended December 31, 2015:
| Total Number of Shares of Common Stock Purchased | Average Price Paid Per Share of Common Stock | Approximate Value of Shares that May Yet Be Purchased Under the Programs | ||||||
| Period | (000’s) | Share | (in millions) | |||||
| BALANCE AS OF SEPTEMBER 30, 2015 | $ | 403.5 | ||||||
| October 2015 | — | $ | — | $ | — | |||
| November 2015 | — | $ | — | $ | — | |||
| December 2015 | 119 | $ | 102.45 | $ | 391.4 | |||
| TOTAL FOR THE QUARTER ENDED DECEMBER 31, 2015 | 119 | $ | 102.45 |
| HUBBELL INCORPORATED - Form 10-K | 15 |
Corporate Performance Graph
On December 23, 2015, the Company completed the reclassification of its dual-class common stock into a single class of Common Stock (the “Reclassification”). Trading in the Class A common stock and Class B common stock ceased after markets closed on December 23, 2015 and trading in the Company's single class of Common Stock commenced on the New York Stock Exchange on December 24, 2015, under the ticker "HUBB". The total return to shareholders on the Company’s Class B common stock during the five years ended December 31, 2015 ("Hubbell Incorporated" in the graph) is determined based on the performance of the Class B common stock to the date of the Reclassification and the performance of the Common Stock thereafter.
The following graph compares the total return to shareholders on the Company’s Class B common stock during the five years ended December 31, 2015, with a cumulative total return on the (i) Standard & Poor’s MidCap 400 (“S&P MidCap 400”), (ii) The Weighted Average of Hubbell Class A and Class B common stock, and (ii) the Dow Jones U.S. Electrical Components & Equipment Index (“DJUSEC”). The Company is a member of the S&P MidCap 400. As of December 31, 2015, the DJUSEC reflects a group of fourteen company stocks in the electrical components and equipment market segment, and serves as the Company’s peer group for purposes of this graph. The comparison assumes $100 was invested on December 31, 2010 in the Company’s Class B Common Stock and in each of the foregoing indices and assumes reinvestment of dividends.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Hubbell Incorporated, the Weighted Average of Hubbell Class A and Class B shares,
the S&P Midcap 400 Index, and the Dow Jones US Electrical Components & Equipment Index
| *$100 invested on 12/31/10 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2015 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. Copyright© 2015 Dow Jones & Co. All rights reserved. |
| 16 | HUBBELL INCORPORATED - Form 10-K |
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