Apple (NASDAQ:AAPL) is planning to split its stock in an effort to make it more accessible to investors.
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Here’s what investors need to know about the Apple stock split.
- According to the tech company, its Board of Directors approved a four-for-one stock split.
- The company says the split will take place at the close of business on Aug. 24, 2020.
- At this time, investors in AAPL stock will receive three more shares for each share that they already own.
- Once Apple has completed the stock split, it will have shares trading on the new split-adjusted basis starting on Aug. 31, 2020.
- With Apple’s shares trading at over $400, this split should drop that price down closer to $100.
- That’s a much easier entry point into the stock for interested investors.
- However, it could also lead to additional volatility as the lower price may attract short sellers.
- The current higher price of AAPL stock means that it typically draws in more long-term investors.
- This marks the fifth time in the company’s history that it has split its stock.
- The first three splits were on a two-for-one basis in 1987, 2000, and 2005.
- Following these, there was a seven-for-one stock split in 2014.
The Apple stock split was announced alongside the company’s earnings for its fiscal third quarter of 2020. This had it reporting diluted earnings per share of $2.58 on revenue of $59.69 billion. These were both better than Wall Street’s estimates of $2.04 per share and revenue of $52.25 billion.
AAPL stock was up 7.4% as of Friday afternoon.
