Nvidia's stock split isn't something for investors to ignore: Morning Brief
Will Nvidia's 10-for-1 Stock Split Boost Returns?
Nvidia announced a 10-for-1 stock split alongside a significant earnings report, effectively lowering the share price but increasing the number of shares each shareholder owns. Historically, such splits lead to an average 12-month return of 25.4%, suggesting positive market reactions. Additionally, Nvidia increased its dividend payout substantially, reflecting strong financial health and continuing investor incentives, despite the typical business cycle fluctuations.
What was the closing price of Nvidia's stock on the Thursday mentioned in the article?
The closing price of Nvidia's stock on the Thursday mentioned in the article was a record high of $1,038.
What will be the approximate new price per share of Nvidia's stock after the 10-for-1 split?
After the 10-for-1 stock split announced by Nvidia, each share's price will be approximately one-tenth of its current market value6. Given that Nvidia's stock closed at a record high of $1,038 on the day before the announcement, the new price per share post-split will be around $103.80. This adjustment makes the stock more accessible to a broader range of investors by lowering the price per share while maintaining the overall market value of the company.