Apple (AAPL) Trading Volume Shrivels; Is it Time to Reconsider a Stock Split?
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Price: $445.15 +0.68%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
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There's something notable going on with Apple's (NASDAQ: AAPL) stock over the past few days and it has traders talking. Volume over the past few sessions has been anemic.
Normally trading 22.1 million shares on an average day, Apple volume fell 27 percent yesterday to 14,887,300. Today volume was only 4,750,000 shares at noon. At this pace shares will only exchange hands about 12 million times for the full day.
Some might view the lower volume as a positive sign - suggesting sellers have dried up. Others might view it as a negative sign - with buyers failing to step-up even with shares trading at a 35 discount to its September highs.
One thing management can takeaway from the lower volume is a need to re-evaluate a stock split. In the past CEO Tim Cook laughed-off the idea of a stock split, essentially calling them stupid. Nonetheless, a split could bring in a new round of investors - something Apple desperately needs.
Recently another split-adverse company - salesforce.com, inc (NYSE: CRM) - bit the bullet and is now seeking shareholder approval for a 4-for-1 split. salesforce.com said a Stock Split would make shares more affordable and attractive to a broader group of potential investors, increase liquidity in the trading of its common stock and increase the attractiveness of our employee equity awards.
Apple should take note and follow suit.
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Normally trading 22.1 million shares on an average day, Apple volume fell 27 percent yesterday to 14,887,300. Today volume was only 4,750,000 shares at noon. At this pace shares will only exchange hands about 12 million times for the full day.
Some might view the lower volume as a positive sign - suggesting sellers have dried up. Others might view it as a negative sign - with buyers failing to step-up even with shares trading at a 35 discount to its September highs.
One thing management can takeaway from the lower volume is a need to re-evaluate a stock split. In the past CEO Tim Cook laughed-off the idea of a stock split, essentially calling them stupid. Nonetheless, a split could bring in a new round of investors - something Apple desperately needs.
Recently another split-adverse company - salesforce.com, inc (NYSE: CRM) - bit the bullet and is now seeking shareholder approval for a 4-for-1 split. salesforce.com said a Stock Split would make shares more affordable and attractive to a broader group of potential investors, increase liquidity in the trading of its common stock and increase the attractiveness of our employee equity awards.
Apple should take note and follow suit.
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