California Pizza Kitchen (CPKI: sentiment, chart, options) is seeing some above-average volume today after reporting an impending stock split. Last night the restaurateur's board approved a 3-for-2 stock split, which will take the form of a 50% stock dividend and increase shares outstanding to 29.1 million from 19.4 million. The split is payable June 18 to shareholders of record by June 11.
In later-afternoon activity, CPKI shares are higher by 1.3%, fresh from a successful test of support at their 10-day moving average. The stock is also in the neighborhood of its all-time high, just 3.3% south of its May 11 peak.
As the stock encroaches upon new-high territory, its possible that short-covering activity could play a critical role. More than 16.5% of the equity's available float is currently sold short. It would currently take 12.4 days (at the stock's average daily volume) to dump all of the existing short positions, providing a sturdy foundation for a short squeeze.
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