Apple Stock Split: The Price To Watch Is Now $100

Posted: Jun 9 2014, 10:40am CDT | by , in News | Apple

 

Apple Stock Split: The Price To Watch Is Now $100
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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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