Apple’s stock hits a split-adjusted record high

Apple’s stock hits a split-adjusted record high
If you were an Apple shareholder of record this past spring, you saw your holdings multiply by seven as the company underwent a 7:1 stock split. While not affecting the values or ownership percentages in a shareholders portfolio, nor affecting the market capitalization of Apple, it did increase relative ownership in terms of number of shares significantly.

It also made Apple’s stock more accessible to small investors who may have been weary of spending north of $600 for one share of stock.

Following the split, Apple’s shares were valued in the low $90-range, and have been slowly gaining value since then. In fact, there really is nowhere for the stock to go other than up. The company has a huge war chest of cash, and it dominates the high-end, high-margin, segment of smartphone and computer sales.

Today, a new record has been reached in Apple’s stock, closing at $100.53 per-share. Adjusted for the split, that is the highest the stock has traded, further elevating Apple’s position as number one in market capitalization.

What is driving the upward trend? Aside from people just buying the stock, there is a high degree of confidence in where the company is going. RBC Capital Markets circulated an internal communication to institutional investors that indicates a bullish outlook for iPhone 6 sales, possibly tipping 75 million units before the end of this year. Such sales would demolish last year’s record for Apple, where the final quarter of 2013 saw sales of the iPhone 5s and iPhone 5c surpass 50 million units. The possibility of a single iPhone model with a larger display, or possibly two models, one with a 4.7-inch display, the other with a 5.5-inch display, charts new ground for Apple, and thus new excitement.

Apple’s stock hits a split-adjusted record high
Apple’s stock hits a split-adjusted record high
Apple’s stock hits a split-adjusted record high
Another thing that is making Apple continue to look more attractive is how the company is spending some of that cash it has on hand. Much of it is being distributed through dividends and stock buy-backs which makes for great value, but also on new products like the highly anticipated Apple smartwatch. If the latter makes it to market, some projections are expecting sales of about 60 million units in the first year. Apple’s acquisition of Beats Electronics is also seen as a positive move.

Then there is investor activist and agitator, Carl Icahn. He has been trumpeting Apple as “undervalued” and has proceeded to increase his holdings in the company as well. “All my chips still on the table and in fact increased position over the past year,” according to his official Twitter account.  According to market filings, Icahn owns over 52 million shares of Apple, valued at roughly $5.3 billion.

sources: Bloomberg and Apple Insider

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8 Comments

1. magnanimus

Posts: 565; Member since: Mar 29, 2013

I knew these would happen XD. Apple this year has undergone such big changes (iOS 8 and bigger iPhone) its pleasing even me an android fan :)

2. darkkjedii

Posts: 30786; Member since: Feb 05, 2011

Man, I wish I had a few of Icahns shares. Dudes got bank.

3. iLegend

Posts: 41; Member since: Jun 05, 2013

where are the haters..?? They will not show up on the good articles about apple.

5. hurrycanger

Posts: 1754; Member since: Dec 01, 2013

Can't say anything about it when there is not really anything bad to say about it. xD

6. Finalflash

Posts: 4062; Member since: Jul 23, 2013

lol this isn't good news for you or anyone else? I don't get how their stock price going up benefits you, unless you own a few thousand Apple shares (which I doubt the readership here does). But, if you haven't noticed, after Jobs' death, this is where all of Apple's innovations have been focused. Even during conference calls Jobs never really talked about money but products. Now it is all money and stocks and dividends, because that is where Tim Cook's wizardry lies. I can name on one hand what Apple is making that really anyone is excited about, watch (done already), larger phone (done already) and phablet (done already). Comparatively, if you look at Google, there are a half a hundred different things they are using their money for that will change lives in the future (self driving cars, fiber to kill monopolies, asteroid mining, internet balloons, etc.). This while Apple is solely now aiming to milk money out of as many idiots as possible (sapphire, make it more breakable and unrepairable by anyone but Apple). Also, I see that now the entire Apple fanbase pride revolves around Apple's financials (concerning objective advantages). It is just sad to see the fanboyism get that bad where all the people calling them iZombies or whatever actually have merit in their argument. Apple making money is good if they spend it on the future of their loyal customers....they're not. It is all about stock value and paying off wealthy shareholders. 1 billion was thrown at sapphire research/production (which is largely going to help Apple milk more) and about 100 billion has been thrown at investors so far (like the ever helpful iCahn). this is just getting ridiculous that Apple fans are now literally praising their own detriments. Oh well, no one said they were smart, and they are hell bent on proving they aren't.

7. mrochester

Posts: 944; Member since: Aug 17, 2014

You or I know absolutely nothing about what Apple has planned for the future, so there's no point in pretending you have some sort of insight. If you hadn't noticed, Apple doesn't announce to the world what they are working on or what products they have planned for the future and only a fool underestimates the influence and reach that Apple has. Personally I praise Apple for making great products, and I hope that they continue to do so.

4. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

"where are the haters..?? They will not show up on the good articles about apple." What's the point? Apple makes a lot of profit. No iFan really questions what that really means. All the iFans do is wave the pom poms.

8. mrochester

Posts: 944; Member since: Aug 17, 2014

I certainly don't wave pom poms, but I do certainly believe Apple deserves every penny of profit that they make. If you work hard and make great products, I don't see why you shouldn't be rewarded handsomely for it.

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