When a company splits its shares, the market capitalization before and after the split stays stable. This means that while shareholders now own more shares, each share is valued at a lower price than before.
A stock that has a lower per-share price can attract a much broader range of investors. If the spike in demand causes the share price to appreciate, the total market capitalization will often rise after the stock splits.
So, what stock has split the most in history? The best known stock that has split the most is Apple.
How Many Times Has Apple Stock Split?
Apple (AAPL) has split five times.
The first split happened in June of 1987. It was a two-for-one split, which means that each shareholder who owned one share of AAPL pre-split subsequently owned two shares. So, a 1,000 share position before the split turned into a 2,000 share position after the split.
Apple’s second stock split happened in June of 2000. This was also a two-for-one split. So, a 2,000 share position before the split turned into a 4,000 share position post-split.
AAPL’s third split happened in February of 2005 and was also a two-for-one split. A person who owned 1,000 shares before AAPL split in the first place now had 8,000 shares.
Apple’s fourth split happened in June of 2014. This was a seven-for-one split, which means for each share someone owned before the split, they now had seven shares! So, an 8,000 share position before the split turned into a 56,000 share position post-split.
In August of 2020, Apple experienced its fifth stock split. This one was a four-for-one split, which means each share of AAPL owned before the split was now worth four shares. So, a 56,000 share position before the split turned into a 224,000 share position after the split.
What Would $1,000 Invested In Apple Be Worth Today?
Because of Apple’s stock split history, you can calculate that 1,000 shares would have turned into 224,000 shares today.
At a price of $162 per share that would translate to $36,288,000.
If you want to just translate what $1,000 before all splits would be worth simply multiply by 224x and you end up with $224,000.
What Was Apple Stock Price When It Split Last?
Apple’s last split quartered the price of its stock, taking it from around $400 per share to $125.
Is Apple Stock Splitting Again Soon?
As shares in Apple continue to soar, many are beginning to speculate that as it climbs and climbs, the stock may split again in the near future.
The data from Apple’s previous splits does not indicate any particular timeframe or price threshold that causes the stock to split. The company has gone as long as thirteen years and as short as less than five years to initiate a split.
Even with inflation factored in, there does not appear to be a price that triggers Apple’s stock to split.
Some experts believe that a surge in the stock causes stocks to split. There was a relatively low increase in share value before the 2014 split, but that followed four consecutive years of gains ranging from 147% to 25% per year.
With this history in mind, some people speculate that Apple will split its stock again once shares trade around $300.
What Will Apple Be Worth In 5 Years?
Historically, Apple has beaten analyst estimates90 percent of the time.But, it’s still hard to predict exactly what Apple will be worth five years from now. The tech giant’s total annual salesrose 33%in 2021. Gross margins were also up 45.6% from the year before.
Apple expects its revenue to grow an additional 4% this year. Most of the growth will come from new 5G devices, hardware, and VR and AR equipment.
Over the past five years, Apple’s stock price has rallied a whopping 460% as its core businesses stay strong, the future is looking bright for Apple’s stock — and investors!
Is Apple a Good Long-term Investment?
Historically, Apple has been an excellent long-term stock choice because it’s been such a successful business. MacBook, iPhone, Apple Watch, iPad, Air Pod sales all continue to rise, and when Apple unveils itsVR headsetfor the metaverse, the company should expect more growth.
The sustained and anticipated future growth make Apple a great choice for a long-term stock investment. Also, given the fact that Apple has already split five times, it’s likely the stock will split again in the future — even if we’re not certain exactly when that will happen.
Warren Buffetteven likes Apple as a long-term investment. In fact, he owns5% of the company!
In 2016, Buffett bought 10 million shares of Apple stock! And, he rarely takes big risks on tech stocks.
Apple is now Berkshire Hathaway’s largest investment — the company owns around$120.4 billionin Apple stock.
Buffett likes Apple as an investment for a number of reasons, including its strong ecosystem and brand, the company’s long-term strategy to attract brand loyalists who are willing to pay a higher price tag for higher quality, and the fact that Apple is an essential business for both consumers and businesses worldwide. If it’s good enough for Warren Buffett, it’s good enough for most other investors, so investing in some AAPL stock may not be a bad idea.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.
