By Carly Forster
Apple Inc. (NASDAQ:AAPL) is a Cupertino, California based Multinational Corporation that designs, develops, and sells consumer electronics, computer software, and personal computers. Some of the most known apple products are the iPhone, iPad, MacBook, and iPod. Starting Monday, June 9, Apple is splitting their stock shares in a 7-1 ratio, making the stock more affordable for the average investor while, in turn, issuing more shares to existing investors.
Apple Inc. (NASDAQ:AAPL) first announced their plans to split their stock shares in a 7-1 ratio on April 23 of this year. Instead of costing $647.50 per share, shares of Apple will now start at around $92.50. Nothing will change for current investors; rather they will just have more stock at a lower price with the same market value. With that being said, based on the way Wall Street experts value stocks, the stock will not be any ‘cheaper,’ but it will certainly be more affordable. Apple CEO Tim Cook explained, “We’re confident in Apple’s future and see tremendous value in Apple’s stock, so we’re continuing to allocate the majority of our program to share repurchases. We’re also happy to be increasing our dividend for the second time in less than two years.”
Apple Inc. (NASDAQ:AAPL) is estimated to report their second quarter earnings on July 22, 2014
Shares of Apple Inc. (NASDAQ:AAPL) plan to open at around $92 on Monday, June 9. The tech giant has a 1-year high of $651.26 and a 1-year low of $388.87. It is yet to be determined what the stocks daily moving average will be. It currently has a 50-day moving average of $595.70. The market cap for Apple is $556.08 billion and its P/E ratio is 15.47.
On June 5, Investorplace.com blogger Jeff Reeves noted that buying the stock looked appealing after the stock split. He reasoned that with the stock split, Apple will see strong returns and ultimately outperform the market. Reeves also noted that this is the fourth time Apple has split its stock from the time the company went public and since then, shares have gone up more than 700% vs. 100% gains for the Nasdaq. Reeves has a +9.9% average return on all stocks and a 65% success rate according to TipRanks.
On June 6, Cantor Fitzgerald analyst Brian White also had a BUY rating for Apple. He thinks that Apples total second quarter sales “will rise by approximately 18-20% [quarter-over-quarter], which is above the average increase of 10% over the past nine years.” White has +0.1% average return on all stocks and a 52% success rate.
Apple Inc. (NASDAQ:AAPL) currently has an analyst consensus of MODERATE BUY.
Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com