Apple Gets Affordable: iPhone Maker Undergoes Stock Split
For market watchers who may not have been keeping up on the latest Apple (NASDAQ:AAPL) news, don’t worry — the Cupertino, California-based company’s stock is not in free fall. After closing at $645.57 on Friday, Apple shares began trading at $92.69 Monday after the stock underwent a previously announced seven-for-one split. The split gave every Apple shareholder of record six additional shares for every share held.
While the split doesn’t change Apple’s overall market value, the lower entry-level price of the shares does make it far more affordable for the average investor. It also vastly increases the company’s total number of shares. Apple’s outstanding stock went from approximately 861 million shares to around 6 billion shares, according to statistics provided by Yahoo Finance.
Apple first announced the seven-for-one stock split plan on April 23, the same day it revealed its financial results for its fiscal 2014 second quarter. Since then, Apple’s stock has risen more than 21 percent while repeatedly setting and surpassing several 52-week records. Apple’s stock went as high as $651.26 in midday trading on Friday, the highest it has been since the $705.07 peak it reached in September 2012. However, it’s not clear how much of that rally can be attributed to the stock split.
Besides announcing a stock split, Apple revealed plans to expand its share repurchase program by an additional $30 billion. The company also boosted its dividend for the second time in less than two years, raising it by approximately 8 percent to $3.29. Several other events may have further fueled Apple’s climb. Soon after Apple announced its March-quarter earnings results, a report from market research firm Kantar Worldpanel ComTech showed that the iPhone maker had boosted its market share in several key overseas markets.