Could stock splits be coming back in vogue? Apple Inc. (NASDAQ: AAPL) finally announced a major stock split. What is amazing is that the split was so large, on a seven-for-one basis. This move has been talked about by yours truly and by many market pundits for so long that it had become a dismissed dream, and no one really saw it coming this week. While this is being deemed as great news for Tim Cook and friends, there are still a slew of major high-priced shares on the market that need to follow suit with a stock split.
24/7 Wall St. is readdressing this notion of companies needing to split their shares. The first warning we have is that stock splits are not just a bull market indicator. Some investors and pundits will try to say that it could mean the peak of the bull market if they see too many stock splits. Anyhow, back to the bull market excitement.
Some other companies we had previously targeted for splits have actually decided to split their shares.
Google Inc. (NASDAQ: GOOG) was a key company we had been after to split its stock. The reality is that the last Google split was a sham. It simply was a seizure of control by Larry and Sergey with a dual class of stock, which robbed shareholders of any voice and vote. The seizure of control was so blatant that we don’t even see why Google should bother with an annual shareholder meeting any longer.
Another company that took our lead (or so we like to pretend) is MasterCard Inc. (NYSE: MA), peaking above $800 before announcing a split. The company now trades close to $74 after splitting 10-for-one, and now its share trading volume of more than 7 million shares per day is also more in-line with an $87 billion market value.
So, who else is on deck for potential stock splits? Also, which stocks might greatly benefit? The new split will take Apple’s stock closer to $80, depending on where the stock settles down.
24/7 Wall St. has identified five well-known stocks that would likely benefit from stock splits. We have included the cost of 100 shares of common stock today to show how expensive the stock is to buy in a round lot. Also included is the daily volume. And for the first time in years, we are also proposing by how much each company should split their stock by, based in part on Apple’s 7-for-1 split.
These are the five proposed stock split candidates from 24/7 Wall St.