NDAQ Stock Gains 5% as Nasdaq Preps for 3-for-1 Stock Split

  • Nasdaq (NDAQ) announced that it had received all the necessary approvals to carry out a 3-for-1 stock split.
  • The owners of NDAQ stock will "receive two additional shares of common stock for every one share."
  • Nasdaq’s Q2 results beat analysts’ average expectations.
NDAQ stock - NDAQ Stock Gains 5% as Nasdaq Preps for 3-for-1 Stock Split

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In conjunction with its second-quarter earnings report, Nasdaq (NASDAQ:NDAQ) announced that it had received all the necessary approvals to carry out a 3-for-1 stock split. As a result of the Nasdaq stock split, the owners of NDAQ stock will “receive two additional shares of common stock for every one share” that they own now. Consequently, the stock’s share price will be divided by about three when the split takes place.

The split will technically be carried out in the form of a dividend. In late-morning trading, NDAQ stock climbed 5.8% to $169.

When Will the Nasdaq Stock Split Occur?

Those who own the shares as of Aug. 12 will be able to receive the extra shares of NDAQ stock. The new shares will be given out on Aug. 26, and NDAQ stock “will begin [trading] on a split-adjusted basis on August 29,” Nasdaq reported.

Nasdaq’s Earnings

The stock exchange operator today reported Q2 earnings per share of $2.07, versus analysts’ average estimate of 92 cents. Its top line came in at $893 million, compared with the mean estimate of $882 million. The company’s revenue climbed 5.6% year over year.

Nasdaq’s solutions segments revenue jumped 12% YOY, excluding the impact of acquisitions.

“As we begin the second half of the year, our carefully calibrated investments are supporting our continued growth across Anti Financial Crime solutions, Analytics and ESG, while maintaining our strong margins and scalability,” CFO Ann Denison said in a statement.

According to Seeking Alpha, going into the Q2 report, Nasdaq had “Over the last 2 years … beaten EPS estimates 100% of the time and [had] beaten revenue estimates 88% of the time.”

NDAQ stock has sunk 19% so far this year.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.


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