![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
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
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- Tesla Surges 5% in Pre-Market; Virgin Galactic Drops 9% Following Reverse Stock Split, and More News • IH Market News • 06/13/2024 11:24:25 AM
- Tamer Than Expected Inflation Data May Spark Early Rally On Wall Street • IH Market News • 06/12/2024 01:07:00 PM
- Paramount Ends Skydance Talks, Oracle Shares Surge 8.7% on New Partnerships, and More News • IH Market News • 06/12/2024 11:19:10 AM
- U.S. Futures Rise on Fed Decision; Oil Gains on Demand Forecasts • IH Market News • 06/12/2024 11:13:28 AM
- Nasdaq, S&P 500 Recover From Early Weakness To Reach Record Highs • IH Market News • 06/11/2024 08:49:55 PM
- FDA Panel Supports Eli Lilly’s Donanemab, Rio Tinto Expands Stake in Boyne Smelters, and More News • IH Market News • 06/11/2024 11:11:40 AM
- Apple extends its privacy leadership with new updates across its platforms • Business Wire • 06/10/2024 09:40:00 PM
- Apple empowers developers and fuels innovation with new tools and resources • Business Wire • 06/10/2024 09:00:00 PM
- macOS Sequoia takes productivity and intelligence on Mac to new heights • Business Wire • 06/10/2024 06:43:00 PM
- watchOS 11 brings powerful health and fitness insights, and even more personalization and connectivity • Business Wire • 06/10/2024 06:43:00 PM
- iPadOS 18 introduces powerful new intelligence features and apps designed for Apple Pencil • Business Wire • 06/10/2024 06:43:00 PM
- iOS 18 makes iPhone more personal, capable, and intelligent than ever • Business Wire • 06/10/2024 06:43:00 PM
- Introducing Apple Intelligence, the personal intelligence system that puts powerful generative models at the core of iPhone, iPad, and Mac • Business Wire • 06/10/2024 06:43:00 PM
- visionOS 2 brings new spatial computing experiences to Apple Vision Pro • Business Wire • 06/10/2024 06:43:00 PM
- Updates to the Home experience elevate entertainment and bring more convenience • Business Wire • 06/10/2024 05:37:00 PM
- Apple Vision Pro arrives in new countries and regions beginning June 28 • Business Wire • 06/10/2024 05:14:00 PM
- Apple Showcases AI at WWDC 2024, Nvidia Stock Split Starts Today, and More News • IH Market News • 06/10/2024 11:29:44 AM
- GME Volatile as Roaring Kitty Goes Live Today, Meta Unveils AI for WhatsApp Ads, and More • IH Market News • 06/07/2024 12:09:15 PM
- Nvidia Becomes 2nd Most Valuable Company in the USA, ASML Takes 2nd Spot in Europe, and More News • IH Market News • 06/06/2024 11:34:59 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/03/2024 10:31:26 PM
- DJT Stock Falls 6% Post-Trump Conviction; UBS Restructures Senior Management for CEO Succession and More News • IH Market News • 05/31/2024 11:54:10 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/30/2024 08:14:20 PM
- Robinhood Shares Surge 3.3% on Stock Buyback Announcement; Anglo Declines BHP Deadline Extension, and More News • IH Market News • 05/29/2024 11:34:18 AM
- iPhone Sales Skyrocket in China, Nvidia Surges in Pre-Market Following xAI Fundraising, and More News • IH Market News • 05/28/2024 11:37:48 AM
ECGI Holdings Announces LOI to Acquire Pacific Saddlery to Capitalize on $12.72 Billion Market Potential • ECGI • Jun 13, 2024 9:50 AM
Fifty 1 Labs, Inc. Announces Major Strategic Advancements and Shareholder Updates • CAFI • Jun 13, 2024 8:45 AM
Snakes & Lattes Opens Pop-Up Location at The Wellington Market in Toronto: A New Destination for Fun and Games - Thanks 'The Well', PepsiCo, Indie Pale House & All Sponsors & Partners for Their Commitment & Assistance Throughout The Process • FUNN • Jun 13, 2024 8:18 AM
HealthLynked Introduces Innovative Online Medical Record Request Form Using DocuSign • HLYK • Jun 12, 2024 8:00 AM
Ubiquitech Software Corp (OTC:UBQU) Posts $624,585 Quarterly Revenue - Largest Quarter Since 2018 • UBQU • Jun 11, 2024 10:13 AM
Element79 Gold Corp Files for OTCQB Uplisting, Provides Financial Update • ELEM • Jun 11, 2024 9:25 AM