Apple’s 4 for 1 stock split is set for Monday, August 31 and ahead of it analysts are weighing in on how the move will impact the stock’s share price. While historically AAPL has seen on average a 10.4% increase 12 months after its stock splits, there are a couple of factors that could hint at stronger than average gains for Apple shares this time around.
As we’ve previously noted, Apple’s stock split won’t directly increase its share price but the move normally encourages more investment, leading to post-split gains.
A note from Morgan Stanley’s Katy Huberty, seen by Philip Elmer-DeWitt highlights that leading up to previous stock splits, AAPL growth has normally outpaced the S&P 500 by around 21% but this year that was boosted to almost 44%.
When looking at the 3-6 month period after Apple’s previous stock splits, Huberty notes more modest 6-7% median increases beyond the S&P 500 gains.
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