Friday, December 15, 2023 1:55:59 PM
Friday, December 15, 2023 9:34 am
2 Comments
Apple’s stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987.
In each of the five times that Apple has split its stock, it was undergoing strong growth in sales and profitability, save for the split in the year 2000, when sales dipped between the dot-com bust and the release of the iPod in October 2001.
It has been over three years since Apple’s last stock split. In the last two splits, the company appears to have intended to bring the share price down to about $100. With a current price in the upper $190s, and setting new all-time highs, Apple’s Board of Directors may be considering another stock split.
Companies issue stock splits for a variety of reasons, but one motivation is to make their shares more accessible to a wider range of investors. Stock splits increase the number of shares outstanding and reduce the price per share, which makes the stock more affordable for smaller investors.
While fractional share purchases are widely available today, they were not always an option. In the past, investors had to buy whole shares, which meant that high-priced stocks were out of reach for many people. Stock splits were a way for companies to lower the price per share and make their stock more accessible to a broader range of investors.
In addition to making their shares more affordable, companies may also issue stock splits to increase liquidity in their stock. By increasing the number of shares outstanding, the trading volume in the stock can increase, which can make it easier for investors to buy and sell shares. Trading volume is not an issue for Apple, the world’s most valuable company.
Stock splits can also be a signal to the market that a company is doing well. When a company announces a stock split, it can be interpreted as a positive sign that the company’s management is confident about the future prospects of the business.
Finally and importantly, Apple is a major component of the Dow Jones index, which is widely used as a benchmark for U.S. equities. Because the Dow is price-weighted, Apple has a significant weight in the Dow. This means that even small changes in Apple’s stock price can have a large impact on the Dow. This can distort the performance of the Dow and make it less accurate as a measure of the overall market. As a result, there is pressure on Apple to periodically split its stock, which would reduce its weighting in the Dow index and increase the Dow’s accuracy in reflecting the overall market.
Apple is currently 12th out of the 30 companies that comprise the Dow Jones Industrial Average with a weight of around 3.5. UnitedHealth Group is, by far, No.1 in Dow weighting at 9.43. The distant No.2 is Goldman Sachs with a weight of 6.77.
So, if weighting and trading volume were the only triggers for a split, Apple is not likely to do so. Still, the company could split its stock at any time simply as a signal of managements’ confidence in the company’s future.
MacDailyNews Note: So, while fractional share purchases are now widely available, companies still issue stock splits to make their shares more accessible to smaller investors, increase liquidity, signal confidence in the future of the business, and, importantly, reduce their price weighting in the widely used DOW index.
Related
Apple’s stock splits: When will AAPL shares split again?
Tuesday, March 21, 2023
In "News"
Is an Apple stock split on the horizon?
Wednesday, June 28, 2023
In "News"
Apple stock hitting $500 is a matter of when, not if
Thursday, April 27, 2023
In "Opinion"
https://macdailynews.com/2023/12/15/apples-stock-splits-when-will-aapl-shares-split-again-2/#google_vignette
Recent AAPL News
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/04/2024 09:04:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2024 10:31:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2024 10:30:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2024 10:30:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2024 10:30:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2024 10:30:20 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/02/2024 08:20:05 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/02/2024 08:17:54 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/02/2024 08:05:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/02/2024 08:05:03 PM
- Form 5 - Annual statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:35:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:34:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:34:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:33:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:32:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:31:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/01/2024 10:30:45 PM
- Apple launches new professional learning resources for teachers and expands global education grant program • Business Wire • 10/01/2024 01:00:00 PM
- Visa Faces Monopoly Lawsuit; Meta Introduces Celebrity Voices for Chatbot; Stellantis on the Hunt for New CEO • IH Market News • 09/24/2024 10:15:50 AM
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/10/2024 01:06:34 PM
- Apple Loses EU Dispute; Google’s $2.7 Billion Fine Upheld; Oracle Shares Surge 9% • IH Market News • 09/10/2024 10:02:31 AM
North Bay Resources Announces Assays up to 5 oz/ton Gold, 1.5 oz/ton Platinum, 0.5 oz/ton Palladium, and 0.5 oz/ton Rhodium at Mt. Vernon Gold Mine, Sierra County, California • NBRI • Oct 4, 2024 9:15 AM
Basanite, Inc. Appoints Ali Manav as Interim Chief Executive Officer • BASA • Oct 3, 2024 9:15 AM
Integrated Ventures Announces Launch of MedWell Facilities, LLC and Lease Agreement with Giant Fitness Clubs • INTV • Oct 3, 2024 8:45 AM
Beyond the Horizon: Innovative Drug Combinations Offer New Hope for Alzheimer's and More • NVS • Oct 3, 2024 8:45 AM
SMX and FinGo Enter Into Collaboration Mandate to Develop a Joint 'Physical to Digital' Platform Service To Enhance Natural Rubber Industry's Ability to Report on Sustainable and Ethical Supply Chains • SMX • Oct 3, 2024 7:00 AM
Transforming Alzheimer's Treatment: Innovative Combinations to Boost Cognition • PFE • Oct 2, 2024 9:00 AM