Stock Splits: Deckers Outdoor Announces Six-for-One Split, Following MicroStrategy, Nvidia and Broadcom
Stock splits are a major trend in the market this year, with companies like Deckers Outdoor, MicroStrategy, Nvidia, and Broadcom making headlines. The recent announcement of a six-for-one stock split by Deckers Outdoor will take effect on Sept. 9 this year. This move follows similar splits by microchip developer Broadcom and other major companies.
Stock splits are popular because they make shares more affordable for investors without changing the underlying valuation or fundamentals of a stock. Companies like Walmart, Nvidia, and Chipotle Mexican Grill have all split their stocks recently to attract more investors.
Here are three potential stock splits to watch:
Costco Wholesale (COST)
- Costco’s stock has risen 44% in the last 12 months, reaching $815 per share.
- A stock split could make shares more accessible to investors, as the stock’s valuation is currently high.
- Costco has a history of stock splits, with the last one occurring 24 years ago.
Super Micro Computer (SMCI)
- Super Micro Computer’s stock has doubled in price this year, trading at nearly $700 per share.
- A stock split could make shares more attractive to investors, especially as demand for the company’s servers continues to rise.
- The stock has come down 43% from its 52-week high, making a split more likely.
ServiceNow (NOW)
- ServiceNow’s stock has surged 44% in the last 12 months, reaching near a 52-week high of $850.
- The stock’s valuation is high, but the company has never split its stock.
- With the share price approaching $1,000, a split could be on the horizon.
In summary, stock splits are a way for companies to make their shares more accessible to investors without changing the underlying value of the stock. By splitting their stock, companies like Deckers Outdoor, Costco Wholesale, Super Micro Computer, and ServiceNow are making their shares more attractive to a wider range of investors, potentially leading to increased demand and higher stock prices in the future.