But stock splits are an increasingly rare corporate action companies take to manage the price, but not value, of their shares.
The last large
According to data from S&P Dow Jones Indices in 1998 there were 1,125 stock splits and reverse stock splits from all publicly traded companies, by 2008 that number had dipped to 338, and last year there were just 227 stock splits.
And every year since 2008 reverse stock splits, usually reserved for smaller struggling companies looking to boost their share price, have made up more than half of the total number of splits.
Companies used to target a share price range more closely by using stock splits. “You could almost plot when a stock hit a certain level,” said
There are still legitimate reasons for conducting a stock split but greater institutional ownership and faster and cheaper trades for both institutional and retail investors creates less incentive to manage to a share price range.
“Companies have shied away from it (splits) and investors haven’t reacted negatively,” Silverblatt said.
It's also become more acceptable for companies to have triple-digit and even four-digit share prices.
See Amazon (around
But even humbler companies like the retailer and distributor of auto parts, AutoZone, trade around
Targets 20% surge in stock price last Wednesday put its share price into all-time high territory greater than
In 1996 then known as
If the stock continues to trade above
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