- Apple just completed its fifth stock split ever on Monday, as investors received four shares for every one share held.
- The split quartered Apple’s stock price from around $US500 last week to about $US125 today.
- Here’s how shares of Apple performed one year after its previous stock splits, according to Ally Invest.
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Investors of Apple received four shares for every one share held, resulting in its stock price being quartered from around $US500 last week to about $US125 today.
So, how have shares of Apple performed after its previous stock splits? According to Ally Invest, quite well.
After Apple’s first 2-for-1 stock split on June 16, 1987, shares went on to return 9.6% over the next year, handily outperforming the S&P 500’s 9.9% decline during the same time period.
Apple’s second 2-for-1 stock on June 21, 2000, was at the height of the dot-com bubble. One year after the split, shares were down 59.6%, underperforming the S&P 500’s 16.4% decline during the same time period.
After Apple’s third 2-for-1 stock split on February 28, 2005, shares returned 52.7% over the following year, outperforming the S&P 500’s 6.4% return over the same time period.
Apple’s fourth stock split on June 9, 2014, which was 7 shares for 1, was followed by a 36.0% return over the next year. Shares handily outperformed the S&P 500’s 6.6% return over the same time period.
While Apple has demonstrated generally strong returns following its stock splits over the years, few companies have followed its path. According to Ally Invest, few S&P 500 companies are splitting their stocks today compared to the 1990s when it was all the rage.
Investors who owned one share of Apple prior to its first stock split in 1987 would own 224 shares today.
If Apple never split its stock over its history, shares would be trading at $US27,957.44 as of Friday’s close.
Shares of Apple traded up 3% to $US128.47 on Monday, representing all-time highs.
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