Apple increases issued shares for 7-for-1 stock split in official SEC amendment
In a brief filing with the U.S. Securities and Exchange Commission on Friday, Apple officially announced an amendment to its Articles of Incorporation to reflect a 7-for-1 stock split that brings total allowed issuance to 12.6 billion shares.
Apple notes in the SEC filing that it increased the number of shares authorized for issuance from 1.8 billion to 12.6 billion to account for the split. Currently, Apple has 8.61 million shares outstanding, which will jump to over 6 billion on Monday.
As part of the split, which is intended to open AAPL up to a larger number of investors, shareholders of record as of June 2 will automatically see each owned share split into seven shares of common stock.
Apple first announced its intentions to split in April as part of the company's quarterly conference call for the second quarter of 2014. In addition to the split, Apple's board of directors authorized a $30 billion increase to its stock buyback plan bringing the total allowance to $90 billion.
"We are announcing a significant increase to our capital return program," Apple CEO Tim Cook said at the time. "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."
As noted by AppleInsider on Thursday, the split-adjusted pricing will begin when trading starts on Monday. Considering a price of $645.57 at the closing bell on Friday, post-split shares will be valued at around $92 each, the first time AAPL has been available below $100 in almost seven years.
Apple notes in the SEC filing that it increased the number of shares authorized for issuance from 1.8 billion to 12.6 billion to account for the split. Currently, Apple has 8.61 million shares outstanding, which will jump to over 6 billion on Monday.
As part of the split, which is intended to open AAPL up to a larger number of investors, shareholders of record as of June 2 will automatically see each owned share split into seven shares of common stock.
Apple first announced its intentions to split in April as part of the company's quarterly conference call for the second quarter of 2014. In addition to the split, Apple's board of directors authorized a $30 billion increase to its stock buyback plan bringing the total allowance to $90 billion.
"We are announcing a significant increase to our capital return program," Apple CEO Tim Cook said at the time. "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."
As noted by AppleInsider on Thursday, the split-adjusted pricing will begin when trading starts on Monday. Considering a price of $645.57 at the closing bell on Friday, post-split shares will be valued at around $92 each, the first time AAPL has been available below $100 in almost seven years.
Comments
Yes. Buy. Buy right away.
Apple did the best it could but it was plain to see Apple's stock momentum ran out of gas. Apparently, Amazon's 3D smartphone overshadowed Apple's split as the Amazon smartphone is being touted as another thorn in Apple's side. All available money over the past couple of days has been poured into Amazon while Apple's stock was left to stagnate. It seems there were a few talking heads who thought Apple might reach as high as $700 pre-split. That was really too much to ask for. Now the analysts are saying Apple is going to fall hard because it's at nosebleed levels and has risen too high too fast over the past couple of months. I'm sure hoping they're wrong and the stock is taking a breather before the mom and pop retail investors jump in.
Question is: buy or not to buy? Wait and see if it goes down more then buy or buy right away?
Well, you could always go long, then sell short. That's hedging.
In any case, asking anonymous contributors (which includes both fanbois and haters) at an Apple rumors tech forum for AAPL investment advice is laughable at best.
Good luck.
Well, you could always go long, then sell short. That's hedging.
In any case, asking anonymous contributors (which includes both fanbois and haters) at an Apple rumors tech forum for AAPL investment advice is laughable at best.
Good luck.
Plus it's obvious that asking supposed investment analysts for advice is even more laughable.
So, I guess he's f*cked.
I know it's a meaningless increase, but most people are not emotionless logic-only investors.
Even beyond the "it's cheaper, so I'll buy it" thing. Apple was stagnant for so long, people feel like they "know" what range it should be in. This shakes up everyones head a little. Now 700 doesn't feel like such a psychological barrier. Maybe we'll actually get a more fair valuation without that baggage.
I gave back my copy of the key. Gotta shimmy the door open with a credit card like everyone else.
I'm not sure you have good grasp of how the stock market works. It's a secondary market meaning when you buy a share of stock, you are buying it from someone else, not Apple or Amazon. So Apple or Amazon don't see a dime of your investment money. The share price of a stock should be reflective of the ability of that company to increase owners equity, not what other people are buying and selling. You should be basing this value on Apple Inc. actual value from their balance sheet and what you think their discounted future increases (or decrease) of owners equity.
I would tend to trust a consensus of financial analysts who have actually done some research over blind hope that the stock price will go up when "mom and pop retail investors jump in" (whatever you mean by that). Financial analysts will be wrong 100% of the time, because we do not have perfect information. But I'd rather base my investment decisions on reasonable thought rather than blindly playing stock market roulette.
-PopinFRESH
Apple did the best it could but it was plain to see Apple's stock momentum ran out of gas. Apparently, Amazon's 3D smartphone overshadowed Apple's split as the Amazon smartphone is being touted as another thorn in Apple's side. All available money over the past couple of days has been poured into Amazon while Apple's stock was left to stagnate. It seems there were a few talking heads who thought Apple might reach as high as $700 pre-split. That was really too much to ask for. Now the analysts are saying Apple is going to fall hard because it's at nosebleed levels and has risen too high too fast over the past couple of months. I'm sure hoping they're wrong and the stock is taking a breather before the mom and pop retail investors jump in.
Amazon's 3D phone? Really? Please just shut the **** up. I'm in awe that there's an actual human being behind that keyboard spewing those rants over and over again in every fucking thread. Do you expect Apple stock to rise in value linearly, infinitely? How the **** is it stagnating, because we've had ONE DAY where it didn't rise? Are you insane? Do you know how stock prices work? Sell every share you have and spare us your never-ending drivel.
You know, on those days when I really fall into despair–which is every day–it’s always a little uplifting to read Slurpy’s comments to the fools of AI and know that at least I don’t post on websites about things that I hate.
How is no one pointing out the multiple glaring factual errors in this article that's been up for nearly 5 hours?
Yesterday before the closing bell there were only 861.38 million shares outstanding. Post split there are now 6.029 billion shares outstanding. The SEC filing clearly states that Apple has a right to issue up to 12.6 billion shares, up from 1.8 billion, not that there are this many shares issued that this time.
If there were 12.6 billion shares today (or 1.8 billion yesterday) Apple's market capitalization would be 1.162 trillion dollars. Unfortunately we're still quite a ways off from that.
Additionally AAPL was daily trading below $100 per share for every day for several months before crossing the barrier permanently on March 18th, 2009. In what world is 5 years and 2 months equal to "almost 7 years."
AI isn't the only one making huge errors though. My Sharebuilder account has increased my shares x7 but hasn't reduced the stock price, so I look like a pretty rich dude at the moment.
Apple did the best it could but it was plain to see Apple's stock momentum ran out of gas. Apparently, Amazon's 3D smartphone overshadowed Apple's split as the Amazon smartphone is being touted as another thorn in Apple's side. All available money over the past couple of days has been poured into Amazon while Apple's stock was left to stagnate. It seems there were a few talking heads who thought Apple might reach as high as $700 pre-split. That was really too much to ask for. Now the analysts are saying Apple is going to fall hard because it's at nosebleed levels and has risen too high too fast over the past couple of months. I'm sure hoping they're wrong and the stock is taking a breather before the mom and pop retail investors jump in.
Are you as f'ing dumb as your posts and rants are?
I am wondering this too. Where is that 1.8 billions shares coming from....
I checked my trading account today and all my shares have split.
Interesting. So maybe because you were an existing shareholder on June 2? From the Apple website
"The Record Date – June 2, 2014 - determines which shareholders are entitled to receive additional shares due to the split."
It comes from a misunderstanding of the SEC filing. The filing says that prior to Friday Apple could have potentially issued up to 1.8 billion shares and that now they could issue up to 12.6 billion. It has nothing to do with actual shares outstanding. So if Apple really wanted I guess they could grant another 6 billion stock options to their employees, but that's pretty unlikely. If current investors had their value cut in half by that much dilution there would be an uproar of epic proportions.