Latest news with #stocksplit
Yahoo
2 days ago
- Business
- Yahoo
Costco Stock Has a Big Price Tag. Some Investors Are Eyeing a Rare Split
Costco's shares finished the week with a price tag over $1,000 apiece, putting them in comparatively rarified company among those of S&P 500 companies. The stock's rise has offered investors a fresh opportunity to wonder whether the company might split its stock—which hasn't happened since 2000. CFO Gary Millerchip in December said that making the shares comparatively cheap is less useful to investors now than in years past because of the availability of fractional shares. Shoppers are fans of Costco's prices. Could the warehouse giant's stock get a smaller price tag, too? That's on some investors' minds lately, with shares of Costco Wholesale (COST) among the most-expensive—on a straightforward price-per-share basis—in the S&P 500: The stock, which closed Friday at around $1,040, was one of a dozen with a four-digit share price. (Topping the list, for those who track such things, was NVR (NVR), shares of which ended the week above $7,000 apiece.) Costco's shares have gotten there in part due to a rise of roughly 25% over the past 12 months, and now there's renewed chatter about whether the company might choose to split the stock. (Stock splits do nothing to the value of a company—broadly, a 10-for-1 split means that instead of one $100 share, you have 10 $10 shares—but they're sometimes taken as a bullish signal.) 'We remain upbeat on the company's ability to gain share going forward and believe shares are positioned for continued outperformance in the current backdrop. Catalysts from here, in our view, include a potential stock split,' Oppenheimer analysts—who have a bullish rating on the shares, along with a $1,130 price target that is above the Wall Street average as tracked by Visible Alpha—wrote late Thursday after Costco reported quarterly financial results. Talk of a Costco split bubbles up from time to time partly because the company rarely does them; it hasn't happened since a two-for-one split in early 2000. Management was asked about splits at the company's January shareholder meeting, with CEO Ron Vachris saying there was 'nothing to report.' The company didn't respond to Investopedia's request for comment in time for publication. CFO Gary Millerchip on a December conference call said that making the shares comparatively cheap is less useful to investors now than in years past because of the availability of fractional shares. 'But we do also recognize that there's a benefit of the stock feeling more affordable for our retail investors and employees who are very important constituents for us," he said. "So we'll continue to evaluate over time.'Read the original article on Investopedia
Globe and Mail
6 days ago
- Business
- Globe and Mail
Wall Street's Biggest Stock-Split Stock of 2025 Is All Systems Go 2 Weeks From Today
Nothing has captivated the attention of investors more over the last two years than the rise of artificial intelligence (AI). The potential for this game-changing technology to add $15.7 trillion to the global economy by 2030, based on estimates from PwC, suggests a broad swath of AI-hardware and applications companies are going to benefit. But it's far from the only trend that investors have flocked to. For instance, companies completing stock splits have consistently been a bright spot for the investing community. Investors are gravitating to stock-split stocks A stock split offers a way for public companies to cosmetically alter their share price and outstanding share count by the same factor. The "cosmetic" aspect has to do with stock splits not changing a company's market cap or operating performance in any way. Splits themselves come in two forms, with investors gravitating to one far more than the other. Reverse splits, which are designed to increase a company's share price, are the less-popular of the two. Most companies undertaking reverse splits are doing so from a position of operating weakness and attempting to save their stock from delisting on a major U.S. stock exchange. In comparison, investors tend to welcome forward stock splits with open arms. This type of split is enacted to make a company's shares more nominally affordable for everyday investors who might not be able to purchase fractional shares through their broker. Public companies whose shares have soared to the point where a forward split becomes necessary are typically out-executing their peers and on the leading edge of the innovative curve within their respective industry. Last year, more than a dozen industry-leading businesses took the plunge and completed a forward split. Retail powerhouse Walmart kicked things off, with a quartet of AI kingpins following suit, including Nvidia, Broadcom, Super Micro Computer, and Lam Research. Although 2025 began a bit slower than last year, stock-split euphoria is beginning to bloom. With the first major forward stock split officially in the books, the biggest stock split of the year has been given the green light for two weeks from today. Wall Street's first stock-split stock of 2025 is official Before giving credence to what'll be the biggest stock-split stock of 2025, let's recognize the first prominent business to actually announce and complete a forward stock split this year: wholesale industrial and construction supplies giant Fastenal (NASDAQ: FAST). Fastenal is no stranger to completing forward splits. The 2-for-1 split announced on April 23 and completed after the close of trading on May 21 was its ninth stock split in the last 37 years. Inclusive of dividends paid, Fastenal stock has a total return of more than 214,000% since its August 1987 initial public offering (IPO). Though Fastenal is cyclical and benefits from periods of economic growth lasting substantially longer than recessions, it's the company's ongoing innovation that's really helped it flourish. Fastenal's managed inventory solutions have helped it learn more about the supply chain needs of its on-site clients. Over time, it's become an integral part of many key supply chains. But Fastenal isn't the only big-name company that's announced a split this year. Automated electronic brokerage firm Interactive Brokers Group (NASDAQ: IBKR) announced its intent to conduct a 4-for-1 forward split on April 15, which was more than a week before Fastenal. This marks its first split -- set to take place after the close of trading on June 17 -- since the company went public in May 2007. Interactive Brokers is a big beneficiary of optimistic investor sentiment. Despite some recent stock market gyrations, the benchmark S&P 500 is still firmly in a bull market. With the exception of the 2022 bear market, which lasted less than a year, and the COVID-19 crash, which completed in five weeks, the bulls have been in firm control for much of the last 16 years. When the benchmark index is climbing, investors tend to be willing to invest more. Narrowing things down even further demonstrates how the current bull market, which began in October 2022, has been beneficial to Interactive Brokers Group. On a trailing-two-year basis, it's witnessed its customer count, customer equity on the platform, and customer margin loans all notably increase. Wall Street's biggest stock-split stock of 2025 gets the green light Although Interactive Brokers' market cap of $87 billion (as of this writing) makes it the largest public company to conduct a split in 2025, it's not the biggest stock-split stock of the year. That honor belongs to auto parts supplier O'Reilly Automotive (NASDAQ: ORLY), which is set to complete a 15-for-1 forward split after the close of trading on June 9. Two weeks from today, on June 10, O'Reilly's stock will open at its split-adjusted price, which should be below $100 per share. Whereas Fastenal and Interactive Brokers simply announced they would be splitting their respective shares, O'Reilly Automotive put its mammoth stock-split measure up for vote at its annual shareholder meeting on May 15. Based on the voting results of its shareholder meeting, this historic split has been given the green light. Since going public in April 1993, shares of O'Reilly Automotive have driven to a scorching-hot cumulative return that's approaching 58,000%! For the sake of comparison, the S&P 500 has gained around 1,260% since O'Reilly's IPO. This undeniable outperformance for Wall Street's biggest stock-split stock of 2025 boils down to three competitive advantages. O'Reilly Automotive's macro advantage is that consumers are keeping their vehicles longer than ever before. A May 2024 analysis from S&P Global Mobility found the average age of cars and light trucks on U.S. roadways hit a new all-time high of 12.6 years. This is up from an average age of 11.1 years in 2012. With interest rates rising and new vehicles becoming pricier, O'Reilly should be relied on by drivers and mechanics to keep existing vehicles in good working order. On a more company-specific level, O'Reilly's hub-and-spoke distribution model has worked wonders. The company has 31 distribution centers to go along with nearly 400 hub stores. The hub-and-spoke distribution model ensures that over 153,000 stock keeping units (SKUs) can reach local storefronts the same-day or on an overnight basis. The final puzzle piece that helps explain why O'Reilly Automotive stock has been unstoppable is the company's phenomenal share repurchase program. Taking after rival AutoZone, which has repurchased around 90% of its outstanding shares, O'Reilly has spent just shy of $26 billion to buy back more than 59% of its outstanding shares since 2011. Businesses with steady or growing net income that regularly repurchase their stock can expect a boost to earnings per share. All the right boxes are checked for O'Reilly's to continue to outperform. Should you invest $1,000 in O'Reilly Automotive right now? Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Lam Research, Nvidia, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
Globe and Mail
25-05-2025
- Business
- Globe and Mail
Prediction: This Will Be the First Mega Technology Company to Split Its Stock in 2025 (and It Isn't Tesla)
Stock splits garner a lot of attention from individual investors. While they do not have an impact on the stock's underlying business, they can draw more attention to the company. Many of the "Magnificent Seven" stocks have split their shares during the past few years, including the likes of Tesla, Apple, and Amazon, as these companies become larger parts of the world economy. One technology stock that has been suspiciously absent from the stock split game is Netflix (NASDAQ: NFLX). The video entertainment giant last split its stock in 2015. With the shares approaching $1,200, it is just about time for Netflix to split its stock once again in 2025. But does that make it a buy for your portfolio? Let's run the numbers and find out. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Netflix's steady growth Consistent growth has been the name of the game for Netflix despite a wild macroeconomic backdrop during the past five years. Revenue has climbed to more than $40 billion during the past 12 months compared to less than $10 billion 10 years ago. Operating income has ballooned from roughly breakeven to more than $11 billion as the company further extends its lead in streaming video around the world. At the end of 2024, Netflix had more than 300 million global paid streaming memberships. This may seem like a lot, but there is plenty of room for streaming video to disrupt linear video in the years to come. For example, Netflix shared that about half of TV viewing in the U.K. still comes from legacy providers. Over the long term, many of these viewers will transition to video streaming, providing a long-term tailwind for Netflix even at its immense size. Netflix's stock is up more than 1,000% during the past 10 years. A big reason for these gains is the company's operating leverage and pricing power. Operating margin has widened to 28% during the past 12 months, making Netflix one of the most profitable businesses in the world. Expanding into advertising and sports There is still a lot of room for Netflix to expand, especially outside of the U.S. In Asia, the company had fewer than 60 million subscribers at the end of 2024, providing plenty of room to gain market share on the continent with billions of potential subscribers. In its more mature markets, Netflix is aiming to increase revenue by adding new content and monetization techniques. It has expanded into live events, such as the Tom Brady Roast, and has dipped its toe into sports content. Christmas Day games for the National Football League were a hit, and the company now has a long-term contract with World Wrestling Entertainment (WWE), which has millions of fans. Sports viewing is a huge part of the video streaming landscape, and Netflix now believes it can capture a piece of this pie. To monetize sports -- as well as its full library of content -- Netflix has started to offer an advertising tier. At $8 a month in the U.S., people can now access Netflix with advertisements, which only launched a few years back. Reportedly, 40% of new subscribers in the U.S. have the advertising tier, and while we do not know exactly how much in advertising sales the company is making today, there is a huge runway to expand these services, given how much time people spend watching Netflix. NFLX PE Ratio data by YCharts The truth about a Netflix stock split With steady revenue growth and a lofty stock price, I think Netflix will split its stock again in 2025. The last time it did so was in 2015. However, investors need to understand that this has no bearing on whether Netflix stock is a buy. Why? Because a stock split does not change anything about Netflix's underlying business or market capitalization. All it would do is separate the Netflix pie into smaller pieces. If you had one share before and there's a 10-for-1 split, those 10 new shares are still going to be worth the same dollar amount. The actual business is not impacted at all. Today, Netflix has a market cap of about $500 billion, and a price-to-earnings ratio (P/E) of 56. This is not cheap, even for a steady growth stock like Netflix. Regardless of whether Netflix is going to split its stock in 2025, this is an expensive stock that is probably not a buy today. Conversely, it is because Netflix stock has soared and gotten so expensive that the stock is ready to split, meaning a stock-split stock may be an indicator of a bad future investment. Stay away from Netflix stock for the time being. Should you invest $1,000 in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Tesla. The Motley Fool has a disclosure policy.
Yahoo
25-05-2025
- Business
- Yahoo
Stock-Split Watch: Is AT&T Next?
The most recent AT&T stock split was a 1-for-5 reverse split in 2002. The telecom company has announced share buybacks. That announcement and positive earnings reports have helped AT&T outperform the market in 2025. 10 stocks we like better than AT&T › The stock market isn't having a great year, with the S&P 500 down 0.4% at the time of this writing. Not all companies have been equally affected by tariff announcements and the possibility of a recession, though. AT&T (NYSE: T) has been one of the better defensive stocks in 2025, as it's currently up 20.2% on the year. Some companies decide to split their stock after a big increase in share price. AT&T hasn't had a stock split in decades, so let's see if that's likely to change soon and where this telecom company stands as an investment. AT&T has completed three forward stock splits: A 3-for-1 split in 1987 and 2-for-1 splits in 1993 and 1998. It also completed a 1-for-5 reverse stock split in 2002, going from just over $5 per share to $25.41. Forward stock splits and reverse stock splits both affect a company's number of outstanding shares, but in opposite ways. A forward stock split means more shares for investors and a lower share price, which can be helpful when the company's share price has gotten expensive. A reverse stock split means fewer shares and a higher share price, and it's sometimes done if a stock is in danger of being delisted because its share price is too low. AT&T isn't in a position where it needs to complete a forward or reverse stock split. Shares are under $30 as of May 22, so they're already affordable. And the share price isn't so low that a reverse stock split makes sense. However, AT&T did announce something better than a stock split at the end of 2024. It plans to return $40 billion to shareholders through 2027, equally split between dividends and share buybacks. When a company buys back its shares, the number of outstanding shares decreases. Investor holdings generally get more valuable, since they now own a greater share of the company. AT&T, along with competitors Verizon Communications (NYSE: VZ) and T-Mobile US (NASDAQ: TMUS), are generally considered good safe havens during economic uncertainty. Their main sources of revenue are wireless phone and internet service, which are services that people pay for every month and rarely give up. In AT&T's case, it reported $21.6 billion in revenue for the first quarter of 2025, and 77% of that ($16.7 billion) came from services. Operating income was $6.7 billion, a 2.4% year-over-year increase. Compared to its main competitors, AT&T trails Verizon by almost $3 billion in revenue, but is ahead of T-Mobile by nearly $10 billion. Those quarterly revenue numbers for AT&T surpassed analyst expectations, and it beat expectations the previous quarter, as well. Overall, AT&T has improved its balance sheet since taking on large amounts of debt for media acquisitions that didn't pan out, most notably the Time Warner deal. Since the beginning of 2020, AT&T has reduced its net debt by $32 billion. Another area where AT&T is doing well lately is subscriber growth. It added 324,000 postpaid phone customers in Q1. That was much better than Verizon, which lost 289,000, but not as good as T-Mobile, which added 495,000. AT&T is most appropriate for investors looking for stability in a turbulent market. It has a resilient business -- revenue might dip if customers downgrade their plans or stop upgrading their smartphones to cut back on their expenses, but it probably won't fall off a cliff. It's also not expensive, with a forward price-to-earnings ratio under 14. This stock may be worth considering if you want to build passive income from dividend investing. AT&T has a fairly high dividend yield (4% at the current share price). But it's also worth mentioning that AT&T cut its dividend in 2022, a necessary step to free up more cash and pay down debt. Given the $20 billion AT&T is planning to spend on dividends through 2027, it could increase the payout. Even though AT&T has outperformed the market this year, it'd be overly optimistic to expect that going forward. If we look further back, AT&T has underperformed the S&P 500 over the last three, five, and 10 years. This isn't the right stock for anyone looking to maximize growth. If you're looking for a company that may split its stock soon, AT&T isn't the best choice, either. It makes the most sense as a defensive investment that pays a healthy dividend. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Stock-Split Watch: Is AT&T Next? was originally published by The Motley Fool
Yahoo
17-05-2025
- Business
- Yahoo
Tilray Brands (NasdaqGS:TLRY) Plans Reverse Stock Split
Tilray Brands recently announced plans for a reverse stock split to align its share structure with similar-sized companies and ensure compliance with Nasdaq's listing requirements. Simultaneously, the launch of their new beverage line, Cruisies, appears to have generated positive market reception. These developments may have supported the company's share price rise of 16% over the past week, outpacing the broader market's 5% increase. The company's focus on streamlining operations and expanding its product offerings potentially contributed added confidence among investors, enhancing overall shareholder returns during this period. Tilray Brands has 3 possible red flags we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The announcement of a reverse stock split and new product line, Cruisies, may provide Tilray Brands with some near-term share price support. However, examining the longer-term performance reveals a different story, with the company experiencing a 75% total return decline over the past year, indicating significant challenges remain. Compared to the broader market's positive returns and the US Pharmaceuticals industry's 9.9% decline last year, Tilray's performance highlights its relative struggles amidst sector trends. The company's ongoing initiatives, like SKU rationalization and international expansions, could influence revenue growth forecasts, which are projected to rise at a rate slower than the market. Despite this, Tilray's negative earnings underscore the difficulty in adjusting to competitive pressures and macroeconomic conditions, with no forecasted profitability in the near term. Given the current share price of US$0.46 and a consensus price target of US$1.29, there remains a substantial gap, reflecting the market's skepticism about Tilray's ability to meet these projections in the prevailing landscape. The stock's recent price adjustment may not yet fully align with analyst expectations, indicating persistent uncertainties. Our valuation report here indicates Tilray Brands may be undervalued. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:TLRY. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
