“Investors expecting a continued pop in Apple Inc.’s stock after its split Monday may want to temper their enthusiasm,” Steven Russolillo writes for The Wall Street Journal.
“Based on the performance of past splits, the rally could be due for a short-term pause,” Russolillo writes. “Since 2010, 57 companies in the S&P 500 have split their shares. Those stocks have averaged a 0.2% gain the day they started trading on a split-adjusted basis, according to New York research firm Strategas Research Partners. A month later, they have risen just 0.5%.”
Russolillo writes, “But longer term, the average gains are more pronounced. Since 2010, these stocks have averaged a 5.4% increase three months after a split and a 28% surge one year later, Strategas says.”
Read more in the full article here.
Related article:
Apple stock splits 7-for-1 – June 9, 2014
