Jun 9 2014, 10:40am CDT | by Forbes
What a difference a month and a half makes.
In April, Apple announced it would undergo a 7-to-1 stock split that would bring its share price down from the stratosphere. But that’s not all that’s changed. On Monday, after the price dropped 85% in the split, Apple shares are not only more accessible than before — they’re also more attractive.
Leading up to the announcement on April 23, Apple shares were down 6.5% on the year. Since then, the stock has rallied to heights not seen since 2012 . Why? Part of it may be the stock split, which makes shares potentially look more attractive to retail investors. It also opens up a chance for Apple to be added to the prestigious Dow Jones Industrial Average, something that would have been impossible at prices exceeding $600 per share.
But plenty else has been going on at Apple. Investors like that the company increased its share buyback and dividend programs to $130 billion in capital return . Developers love the new tools Apple unveiled at its new operating system reveal at last week’s WWDC, even if no new hardware came with it . Apple also dipped into its reserves to make its largest acquisition ever, a $3 billion purchase of Beats Electronic — bringing Jimmy Iovine and Dr. Dre on board .
Apple shares are up over 23% since the split was announced. While the split would have reduced the share price to about $75, instead the stock sits at about $92. If you’re eyeing a split-adjusted record high in the stock that keeps going up, the new one to watch for is $100.73. Apple shares last reached that peak in September 2012.
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