Apple is aiming to bring its stock to a wider base of investors by breaking it four ways.
Announcing the release of its third quarter earnings, the iPhone giant said that trading would begin on August 31, 2020 on a split-adjusted basis. Depending on how the shares perform between now and then, split shares may cost around $ 100. .
Apple shares rose 6% on Thursday after closing at $ 384.76.
This is Apple’s first stock split since 2014. Since going public in 1980, Apple’s stock has split four times since the company went public. It split on a 2-for-1 basis in 1987, 2000 and 2005, and a seven-on-one basis in June 2014. Apple shares have appreciated 320% since their last stock split.
The division “certainly helps liquidity in shares and brings in new investors,” said Angelo Zino of CFRA.
Apple CFO Luca Masri said on its third quarter earnings that the split is intended to make Apple’s stock “more accessible to a wider base of investors”.
In addition, Apple’s board declared a cash dividend of $ 0.82 per share of its common stock payable on August 13.
Overall for the quarter, Apple easily defeated Top and Bottom Line estimates, reporting 18% EPS growth for $ 2.58 and 11% revenue growth at $ 59.7 billion despite a challenging quarter due to COVID-19. .
Apple management stressed the healthy sales of the iPhone SE, strong demand for iPads and Macs, and the impact of government stimuli worldwide, compared to expected better sales in May and June.
The company did not provide specific fiscal guidance for the September quarter, but said its upcoming iPhone lineup would come “a few weeks later” than last year. Apple’s iPhone 11s went on sale on September 20, 2019.
Apple shares rose 28% in earnings.