107207607 16787198342023 03 13t144633z 1401330191 rc21tz9c1m5i rtrmadp 0 usa stocks

Investors​ are ‍keenly ​observing the ‌market​ trends, especially after Chipotle’s recent announcement of a 50-for-1 stock split scheduled for June. This ⁣news led to ​a surge in the restaurant chain’s shares by ⁣over 5% on the⁣ following Wednesday. It’s worth noting that stocks ⁢that have previously announced ⁢splits have generally performed ⁢well in the subsequent ⁢months. A prime ⁣example is Amazon, which‌ saw a roughly 4% increase in ‍the three months following its 2022⁢ announcement.

Stock splitting ​is essentially ⁢a strategy to make a company’s‍ shares more affordable without altering the⁤ business’s value. For instance, after a⁤ 2-for-1‍ stock split, a holder of one share of a $20‌ stock now possesses two shares of ‍a $10 stock.

Potential Candidates for Stock​ Splits after Chipotle

Using the ‌CNBC Pro Stock⁤ Screener tool, CNBC identified companies with high share ‍prices that could⁤ potentially split ⁤their stock ‍next. Interestingly, Chipotle‌ emerged as a potential candidate even before the board’s decision was announced. The​ criteria used for this screening included: shares​ priced above $500 each,⁤ stocks that⁤ have doubled the broad market’s return over the past 12 months, shares within 10% of their 52-week high,⁤ and stocks in the S & P 500.

While stock splits don’t change anything‌ other than the price per share ‌and the number of shares outstanding, history shows a ⁤stock⁣ can get a temporary lift afterward from increased ​accessibility. For instance, individual investors ⁣are better able to hold​ a ‌round ⁤lot of 100 or 500​ shares of a lower-priced ‌stock than⁤ 1 or⁤ 5 shares of a higher-priced stock.

Companies Considering Stock Splits

Chipmaker and top artificial intelligence ​player Nvidia made the cut, ‍with shares having soared nearly 79% in 2024 alone. The stock is roughly ⁤8%​ below‍ from its 52-week high‍ of $974 reached on‍ March⁤ 8. Nvidia’s Chief Executive Jensen ⁣Huang mentioned at its GTC Conference that the company would consider splitting its stock in the future. Nvidia has ⁤a history of such moves, having made a 4-to-1⁢ split in July⁤ of 2021.

Netflix, the dominant streaming platform, has also ​split in the past, the most recent one being a 7-to-1 ⁤split in June of ⁣2015. Shares have added nearly 28% in 2024, and are⁤ currently just 1% below what would‌ be a fresh 52-week high. JPMorgan reiterated ​a positive outlook ⁣on Netflix, adding that ⁣it’s well-positioned​ to boost revenue growth. The stock is also only about 12%⁤ below its all-time high reached in November of‌ 2021.