“When Apple Inc. does something, it always seems to do it in a big way. Even when that involves splitting up,” Rex Crum writes for MarketWatch. “That would be the company’s stock. Come Monday, investors will see something they haven’t seen in more than five years: Apple’s stock price at below $100 a share, the result of a 7-for-1 stock split.”
“When Apple in April said it would split its stock, it was one of the most visible moves by Chief Executive Tim Cook to show that this is a different Apple than the one left by Steve Jobs in 2011,” Crum writes. “While Jobs oversaw a two-for-one stock split on Feb. 18, 2005, which left Apple that day with an adjusted price of $41.49 a share, Jobs was known to be loathe to the idea of anything that would seem to dilute the value of Apple in any way, including anything that would return some of the company’s capital to its investors.”
“If you had bought just one share of Apple on the day of its 2005 stock split, your return on your investment would be almost 1,470% as of Friday. And on Monday, that check you wrote nine years ago for $41.49 will provide you with seven shares of Apple worth about $93 each,” Crum writes. “Big sales, big deals ($3 billion for Beats, which nearly equaled the combined price of all the acquisitions Apple’s has announced), big changes to its iOS and Mac OS technologies , and now a big stock split. In less than six months, that’s a Grand Slam of big things, even for Apple.”
Read more in the full article here.
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Apple’s stock has now split 7-for-1; outstanding shares increase from 1.8 billion to 12.6 billion – June 7, 2014