Analyst claims Apple considering stock split; could lead to inclusion in DOW

“Bernstein Research on Tuesday wrote that Apple Inc may be considering a stock split, a move that could lead to the pricy company’s inclusion in the Dow Jones Industrial Average,” Reuters reports.

“The firm gave no reason for why Apple might take such a move, which would double the number of Apple shares while halving the price,” Reuters reports. “In a note to clients, senior analyst A.M. Sacconaghi wrote that a split would enable Apple to be considered for inclusion in the 30-company index, which he described as under-representing technology companies.”

Read more in the full article here.

MacDailyNews Take: Need more input, Stephanie! In addition, only a 2 for 1 split would halve the price of AAPL shares. Stock splits don’t have to be 2 for 1.

That said, since Apple went public, there have been three AAPL stock splits and each one was 2-for-1. The payable dates were June 15, 1987, June 21, 2000, and February 28, 2005.

24 Comments

    1. Article is kind of stupid – The DOW is based pretty much only on stock price, which really tells you nothing about the health or value of the company – and with apple around 600 this would really mess up the index – Apple would have to split at least 10 to 1, maybe 15 to 1 so that small percentage changes in it’s stock price didn’t skew the DOW too much. That’s why there are no high share price stocks in the index.

    1. Which is all SOS (same old shite) stock manipulation tactics. We all underestimate how much our world is fiddled by the parasitic and power hungry, aka those over compensating for feelings of inferiority and those who are outright psychopaths. Being lost is sadly the state of most humans. I have no idea how to change that fact apart from encouraging those around you and living a sane personal life. Such is our species. /philosophicalblethering

      1. I’m going out on a limb, here, and suggesting Jean may be trying to say in English what he’d ordinarly say in French. In other words, something was lost in the translation. I think he meant to say Microsoft split its stock so why doesn’t Apple (don’t quote me on that, tho!).

        I’d cut him a break, fwiw.

  1. I was hoping for something along the lines of a 10-1 split then see the stock run up from around $60 to $100 a share by early next year. Now we’re talking. Or more like, now we’re dreaming.

    1. For once I agree with you. I’d love to see a 10:1 split and inclusion in the DOW. Reasons?

      First, to even a professional investor, $100/share sounds a lot more possible than $1000/share. Second, being in the DOW then REQUIRES a lot of mutual funds to hold AAPL shares that either choose not to or can’t by their own rules currently. Instant demand!

      1. Also, to trade options, for one contract (100 shares) you may need to cash secure the trade at $60,000 – for a lot of people this would tie up all their cash quickly.

  2. I wonder if this report is the reason why Apple stock is up $14+ so far today.

    “Investors” (I have a fair amount of AAPL, but don’t ever sell, so I don’t count myself as that kind of investor) like the idea of a stock split, feeling a lower price and inclusion in the Dow will attract more “investors”.

  3. I’m tired of all this Apple-has-to-split-it’s-stock crap. There is no reason to split the stock — no benefit other than a temporary bump that will become meaningless a week after any split.

    Owning one share of a $600 stock is the same as owning ten shares of a $60 stock. It’s the same idiots who don’t understand this who are clamoring for a split. There’s no difference between a $600 stock moving ten points in a day and a $60 stock moving one point in a day (which is what would happen if AAPL split 10:1.)

    1. I understand it, and understand it quite well. It’s my sister, brother-in-law and a friend who, after I suggested they buy into AAPL, said “Wow, that’s too expensive!” It’s people who DON’T understand it that would be more likely to buy AAPL. Surely these 3 people aren’t the only ones on the planet that think like this.

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