Introduction to Apple Stock Splits
Apple Inc. (AAPL) is one of the most widely held and closely watched stocks in the market. As the company’s stock price has soared in recent years, many investors are wondering: when will Apple stock split again? Apple has a history of stock splits, with the most recent being a 4-for-1 split in August 2020. Stock splits can make shares more affordable and accessible to a wider range of investors, while also increasing liquidity in the market.
What is a Stock Split?
A stock split is a corporate action in which a company divides its existing shares into multiple new shares. This has the effect of increasing the number of shares outstanding while proportionally reducing the price of each individual share. Stock splits do not directly impact a company’s market capitalization or fundamentals. However, they are often viewed positively by the market as a sign of management’s confidence in future growth prospects.
Some of the key benefits of stock splits include:
- Making shares more affordable for smaller investors
- Increasing liquidity by encouraging higher trading volume
- Signaling management’s bullish outlook
- Attracting greater media and analyst coverage
Apple’s History of Stock Splits
Since going public in 1980, Apple has split its stock five times. Here is a summary of Apple’s stock split history:
| Date | Split Ratio |
| June 16, 1987 | 2 for 1 |
| June 21, 2000 | 2 for 1 |
| February 28, 2005 | 2 for 1 |
| June 9, 2014 | 7 for 1 |
| August 28, 2020 | 4 for 1 |
Apple’s stock splits have typically occurred during periods of strong price appreciation. For example, the 7-for-1 split in 2014 came as the stock was trading above $600 per share. The 4-for-1 split in 2020 occurred with shares around $500 before the split.
Current Apple Stock Performance
As of July 2023, Apple’s stock is trading at around $214 per share, giving the company a market capitalization of over $3 trillion. The stock has performed well in recent years, with a total return of over 370% in the past five years.
Recent Stock Price Movements
While Apple’s long-term stock performance has been stellar, the stock has seen some volatility in recent months. The stock surged over 13% to reach new all-time highs following strong Q2 2023 earnings. However, it has since pulled back modestly amid some profit-taking.
Here are some key recent developments impacting Apple’s stock price:
- Better-than-expected iPhone sales, especially in China, during Q2 2023
- Buzz around new AI and augmented reality features coming to Apple products
- Resilient consumer spending on premium devices despite macro headwinds
- Investor enthusiasm over growth prospects in services and new markets like health
Factors Influencing Apple Stock
Apple’s stock performance is influenced by a variety of factors, including:
- iPhone sales growth and upgrade cycles
- Expansion into new product categories and markets
- Services segment growth and profit margins
- Overall consumer spending and economic conditions
- Competition from other tech giants like Google, Microsoft, and Amazon
- Regulatory risks around antitrust and data privacy
As one of the largest companies in the world, Apple’s stock is also swayed by broader market sentiment. The stock tends to be seen as a bellwether for the tech sector and the market as a whole.
Predictions for the Next Apple Stock Split
With Apple’s stock price having appreciated significantly in recent years, many investors are speculating about when the next stock split might occur. Here’s a look at what some analysts are predicting.
Analyst Opinions on Apple Stock Split
Analysts have mixed views on the likelihood and timing of Apple’s next stock split:
- Some believe another split is likely in the next 12-18 months if shares continue to appreciate
- Others think Apple may wait longer, having just split in 2020, unless the stock really takes off
- Concerns over setting a precedent of splitting too frequently and being beholden to the stock price
- Recognition that splits can increase retail investor interest and trading volumes
| Analyst | Prediction |
| Toni Sacconaghi, Bernstein | “We doubt Apple feels compelled to split so soon after their 2020 split, but it’s likely the next time the stock reaches $500-$600/share” |
| David Vogt, UBS | “The 2020 split was well-received by investors, and if retail enthusiasm wanes management could easily re-ignite interest with another split in 2024” |
| Keith Bachman, BMO | “We’re not convinced another split is top priority for Apple at these levels, but may become more attractive if that $3T market cap is sustained and built upon” |
Potential Timing for the Next Split
Predicting the exact timing of Apple’s next stock split is difficult. However, based on the current share price and Apple’s historical patterns, a case could be made for another split in 2024 or 2025 if the stock continues to perform well.
Key considerations for the timing include:
- Awaiting a higher share price in the $500-$600 range (pre-split) to minimize any perception of splitting too frequently
- Leveraging a split announcement to reinvigorate interest if growth rates or sentiment appears to be slowing
- Aligning the announcement with a major product launch or milestone to amplify the effect
- Coordinating with overall market conditions to have the maximum positive impact
Ultimately, the timing of Apple’s next stock split will depend on a variety of factors, including the share price performance, market conditions, and management’s assessment of the potential benefits.
Impact of a Stock Split on Investors
If Apple does move forward with another stock split, it would have several implications for shareholders. Here’s what investors need to know.
A stock split increases the number of shares each investor owns, but the total value of their position remains the same. For example, if you owned 100 shares of AAPL at $500 before a 5-for-1 split, you would own 500 shares at $100 each after the split.
Some of the key effects of a stock split on shareholders include:
- Psychological boost from the apparent sudden increase in number of shares owned
- Potentially higher liquidity and narrower bid-ask spreads from increased trading volume
- Likely short-term bump in share price from heightened retail investor interest and media coverage of split
- No direct impact on the inherent value of the company or the investor’s proportional ownership stake
Stock Splits and Market Liquidity
One of the main goals of a stock split is to enhance market liquidity. By increasing the number of shares outstanding and lowering the price per share, a split can attract a wider base of investors and promote more active trading. This is especially true for companies like Apple that have seen their share prices rise into the hundreds of dollars.
Some of the liquidity benefits of a stock split include:
- Making shares accessible to smaller investors who may have found the stock too expensive otherwise
- Encouraging higher share turnover and trading volumes
- Potentially tightening bid-ask spreads, making it easier to trade in and out of positions
- Increasing the stock’s weighting and visibility in index funds and ETFs
Conclusion
In conclusion, while we can’t predict exactly when Apple will split its stock again, the prospect of another split in the coming years remains a real possibility. With the share price currently around $214 and the precedent of Apple splitting when shares reach the $500 range, a split may make sense in 2024 or 2025 if shares approach that level.
Key factors to watch in gauging the likelihood and timing of the next Apple stock split include:
- Share price appreciation towards $500-$600 range
- Signals from management on openness to another split
- Investor sentiment and waning retail enthusiasm that could be revived by a split
- Market conditions and timing for maximum impact of a split announcement
For Apple shareholders, a stock split would likely provide a short-term boost to the share price and liquidity. However, it’s important to remember that a split doesn’t change the company’s underlying fundamentals or long-term outlook. The key for Apple will be continuing to launch innovative products, grow its high-margin services business, and expand its presence in major markets like China and India.
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