Diamond Member Pelican Press 0 Posted March 26, 2024 Diamond Member Share Posted March 26, 2024 Watch for potential wave of share splits, says Strategas The market may see a new wave of stock splits, creating another growth catalyst for a market that wants to keep rallying, according to Strategas. Strategas thinks it is worth keeping an eye on Chipotle’s recent decision to enact a 50-to-1 stock split in case it ushers in further stock splits, especially considering the higher average price of stocks in the broader market. According to the firm, the average price of a stock in the S & P 500 is off its highs, but is still at about $160, which is more than four times the average price of a share in 2008 before the financial crisis. “We think [the Chipotle stock split] is worth watching for two reasons: 1) in the past, a wave of stock splits was often associated with a significant increase in stock speculation; and 2) it would be a boon for institutional brokers who get paid on a cents-per-share basis,” analyst Jason Trennert wrote in a Monday note. Trennert added that, since 2010, companies that split their shares outperformed the broader market by a “meaningful margin” in the couple months after the changes took effect. The median gain of a stock 65 days post-split is 4.1%, compared to the S & P 500’s median 2.7% gain during the same *******. Stock splits do not change anything fundamentally about the company, but they generally make shares more attractive to the retail trader because of lower prices. Here are the highest-priced stocks in the S & P 500 that Strategas thinks investors could benefit from if they split. These stocks were the highest priced per share in the broad market index through Friday’s close: Some major artificial intelligence-related plays, namely Super Micro Computer , Nvidia and Broadcom , are among the high-priced stocks listed by the firm. In response to whether the company could consider issuing a stock split, Nvidia CEO Jensen Huang last week told CNBC’s Jim Cramer , “We’ll think about it … today is not the day to announce it,” and that stock splits are “a good thing,” particularly for the company’s employees. Another name on the list, pharmaceutical giant Eli Lilly , last announced a 2-for-1 stock split in September 1997. The company’s shares have jumped more than 33% this year and 130.5% over the past 12 months, fueled by its robust diabetes and anti-obesity medication pipeline that has positioned the company as a leader in the rapidly growing obesity ***** market. Other stocks that made the list include AutoZone , Costco Wholesale and Regeneron . This is the hidden content, please Sign In or Sign Up Regeneron Pharmaceuticals Inc,Costco Wholesale Corp,Autozone Inc,Eli Lilly and Co,Broadcom Inc,NVIDIA Corp,Super Micro Computer Inc,Stock markets,Investment strategy,business news #Watch #potential #wave #share #splits #Strategas This is the hidden content, please Sign In or Sign Up Link to comment https://hopzone.eu/forums/topic/7604-watch-for-potential-wave-of-share-splits-says-strategas/ Share on other sites More sharing options...
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