Apple stock split history
|Price before split
|16 June 1987
|$79 (31 May 1987)
|21 June 2000
|$111 (31 May 2000)
|28 February 2005
|$90 (31 January 2005)
|9 June 2014
|$656 (31 May 2014)
When Apple carries out a stock split, it is increasing the number of shares in the company by dividing its existing shares. As with most companies, Apple has carried out stock splits when the share price has risen so high that it could deter investors; this can be seen in the full Apple stock split history outlined above. In the first three instances, stocks were split in two when the price was near triple figures. Then, in 2014, share prices rose sharply and a higher split ratio was used.
While a stock split might be carried out to encourage investment, the split in itself doesn’t affect the market capitalisation of a company. Existing shareholders will own more stocks, but each of those stocks is worth less, so there is no change to the total market value of the company.
Stock divides might not directly increase share prices, but they can often result in higher share prices further down the line. By making shares accessible to new investors, demand can increase, causing the share price to appreciate and the total market capitalisation to rise. In the case of Apple, stock value has appreciated enormously.
Apple stock split history: share prices (not split adjusted) since Apple’s IPO
Apple stock split example
An investor buys a share in Apple in January 2005, so they have one share worth $77.00. After the two-for-one stock split a month later, they own two shares in Apple, but each of these shares is worth half the amount – around $38.50. If the shareholder keeps these two stocks until May 2014, they will be worth $1,266 ($633 each) as the stock price appreciates. With the fourth stock split, each of these stocks will then be split seven times, so that the shareholder owns 14 shares in Apple.
Apple’s split-adjusted share price
When looking at the value of a company’s shares, it can be difficult to interpret how successful the company has been based on its stock prices following a split. Apple’s current share price of around $191 doesn’t look anything like as impressive as it would have done ahead of its four stock splits.
This is where split adjusted figures come in – they account for stock splits when working out return on investment. With Apple, stock adjusted figures would acknowledge the fact that one stock bought during its initial public offering (IPO) would now have become 56 shares.
Long-term Apple shareholders have seen an incredible return on their investment; a $22 share in the company when it first went public in 1980 would be worth approximately $10,696 at the time of writing – a return of 48,518%.
Apple’s first stock split: 16 June 1987
Apple’s first stock split occurred on 16 June 1987, seven years after it became a public company, and it was a two-for-one stock split. It kept share prices low enough to make them accessible to investors. There was a 2% rise in stock prices over the following year.
Apple’s second stock split: 21 June 2000
The second Apple stock split took place on 21 June 2000, and was also a two-for-one split. Ahead of the split in May 2000, the stock price was $84. Shortly afterwards though, in September 2000, share prices were halved as many technology companies experienced a rapid decline. This was around the time the dot-com bubble burst, where many companies went out of business and others decreased in value. Apple blamed lower sales than they had forecast for September, as well as a weakness in the education market. While Apple was affected temporarily, the company’s shares made a full recovery and went on to achieve new highs.
Apple’s third stock split: 28 February 2005
Apple’s third stock split took place on 28 February 2005, with the company once again allocating a two-for-one ratio. This took the number of common shares authorised from 900 million to 1.8 billion, after shares almost quadrupled in value. The press release announcing the stock split reported that Apple ‘continues to lead the industry in innovation … Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store'.1 In the year following the stock split, prices rose by 60%.
Apple’s fourth stock split: 9 June 2014
Apple’s fourth and final stock split to date happened on 9 June 2014. This was the most significant of Apple’s stock splits, with a seven-to-one ratio taking shares from close to $700 down to around $100. Apple wanted to make shares accessible to more investors, but it’s also speculated that they set their sights on inclusion in the Dow Jones Industrial Average index. This index acts as a benchmark, with 30 stocks included from key economic sectors. As it’s a price weighted average, Apple’s stock price needed to be reduced before it was feasible for the company to be added. It was announced that Apple would join the Dow Jones in March 2015 and it has been a part of the index since March 2019.
Will Apple stock split again?
It seems unlikely that Apple will complete another stock divide in the near future. Share prices are still climbing (they are currently trading at around $186), however shares were worth close to $700 before the last split in 2014. Apple may consider another stock split if share prices continue to rise, but for now, this move probably wouldn’t be in the best interests of the company.
Apple announced its fourth stock split along with the news that its board of directors had authorised an increase to their shareholder capital return programme, and an increase to the quarterly dividend. This stock split was widely talked about as a way of making shares easier to purchase, with Apple Insider saying ‘we want Apple stock to be more accessible to a larger number of investors'.2
If Apple’s shares once again become excessively high in price and the media begin speculating about a share divide, it could indicate another stock split in the coming months.
1 Apple, 2005
2 Apple Insider, 2014
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Apple Stock Split History
Apple has a history of stock splits, which involves increasing the number of shares in the company by dividing its existing shares. Apple has carried out stock splits when the share price has risen to a level that could deter investors. Here is a summary of Apple's stock split history:
Date: June 16, 1987
- Split Ratio: 2:1
- Price before Split: $79 (as of May 31, 1987)
Date: June 21, 2000
- Split Ratio: 2:1
- Price before Split: $111 (as of May 31, 2000)
Date: February 28, 2005
- Split Ratio: 2:1
- Price before Split: $90 (as of January 31, 2005)
Date: June 9, 2014
- Split Ratio: 7:1
- Price before Split: $656 (as of May 31, 2014) It's worth noting that a stock split doesn't affect the market capitalization of a company. Existing shareholders will own more stocks, but each stock is worth less, resulting in no change to the total market value of the company. However, stock splits can often result in higher share prices in the long run by making shares more accessible to new investors, increasing demand, and potentially causing the share price to appreciate .
Apple's Split-Adjusted Share Price
When evaluating the value of a company's shares, it can be challenging to interpret how successful the company has been based solely on its stock prices following a split. To account for stock splits when calculating return on investment, split-adjusted figures are used. These figures acknowledge the fact that one stock bought during the initial public offering (IPO) would have become multiple shares after subsequent splits. For example, one stock bought during Apple's IPO would now have become 56 shares.
Apple's First Stock Split: June 16, 1987
Apple's first stock split occurred on June 16, 1987, seven years after the company became public. It was a two-for-one stock split aimed at keeping share prices accessible to investors. Following the split, there was a 2% rise in stock prices over the following year.
Apple's Second Stock Split: June 21, 2000
The second stock split took place on June 21, 2000, and was also a two-for-one split. Prior to the split, the stock price was $84. However, shortly afterward, in September 2000, share prices were halved due to a decline in the technology sector, including the bursting of the dot-com bubble. Despite these challenges, Apple's shares eventually made a full recovery and reached new highs.
Apple's Third Stock Split: February 28, 2005
Apple's third stock split occurred on February 28, 2005, with a two-for-one ratio. This split was announced after shares almost quadrupled in value. In the year following the split, prices rose by 60%. Apple's press release at the time highlighted the company's leadership in innovation and its role in the digital music revolution with products like the iPod and iTunes.
Apple's Fourth Stock Split: June 9, 2014
Apple's fourth and most significant stock split to date happened on June 9, 2014. It was a seven-to-one split, taking shares from close to $700 down to around $100. This split aimed to make shares more accessible to investors and potentially facilitated Apple's inclusion in the Dow Jones Industrial Average index. Apple joined the index in March 2015 and has been a part of it since March 2019.
Possibility of Future Stock Splits
While it is uncertain whether Apple will carry out another stock split in the near future, it seems unlikely. Apple's share prices are still climbing, and another split may not be in the best interests of the company at this time. However, if share prices continue to rise significantly, and there is speculation in the media about a potential split, it could indicate the possibility of another stock split in the coming months .
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