Splitsville: 8 Stocks That Will Split This Summer
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By Bristol Voss, Minyanville
Stock splits have been few and far between in recent years. In 1997, 102 companies on the S&P split their stock. Last year just 16 did. This year 11 have been announced.
There are different perspectives on stock splits but most view them as an investor “reward.” Another plus is that post-split the stock prices become more affordable to a wider range of retail investors. Generally the stock price change is reflected in the stock some three days after the split takes place. Most splits take place on a Friday although two of this summer's eight chose other days: Raven Industries (NASDAQ: RAVN) is set for a Wednesday and Under Armour (NYSE: UA) is set for a Monday.
Ametek (NYSE: AME) will split 3-2 payable on June 29. Ametek is a leading global manufacturer of electronic instruments and electromechanical devices and has $8.44 billion in market capitalization. Ametek's stock price has risen 163% since 2008 although its $52.67 is on par with competitors Danaher Corp. (NYSE: DHR) at $52.97 and Emerson Electric (NYSE: EMR) at $47.18.
Brown-Forman (BF-B) will split 3-2 on August 10. Brown-Forman is one of the largest American-owned companies in the wine and spirits business and has $13.08 billion in market capitalization. Brown-Forman's $90.77 stock price is 135% higher than it was in 2008 although it is comparable to stock prices for for foreign competitors Diageo (NYSE: DEO) at $100.13 and Pernod (PINK: PDRDF) at $102.00, but greater than domestic competition BEAM Inc. (NYSE: BEAM) at $63.10.
CME Group (NASDAQ: CME) will split 5-1 on July 20. CME is an exchange providing clearing and settling services for exchange traded contracts and OTC derivative transactions. It has a market capitalization of $18.63 billion. CME's stock price rose 60% since 2008 and its $280.17 is well above competitors ICE (NYSE: ICE) at $135.48 and NYSE Euronext (NYSE: NYX) at $25.00.
Coca-Cola (NYSE: KO) will split 2-1 on August 10. Coke is a beverage company that owns or licenses more than 500 non-alcoholic beverages and has a market capitalization of $171.07 billion. Coke's stock price of $75.84 is only marginally higher than competitor PepsiCo (NYSE: PEP) at $69.44 and sister company Coca-Cola Bottling (NASDAQ: COKE) at $63.15. Since 2008, Coca-Cola stock has risen 82.26%.
Dollar Tree (NASDAQ: DLTR) will split 2-1 on June 26. Dollar Tree operates numerous discount variety stores in the US and Canada and has a market capitalization of $13.14 billion. The company's stock price of $113.40 is well above competitors Dollar General (NYSE: DG) at $52.24 and Wal-Mart (NYSE: WMT) at $67.86. Since 2008, Dollar Tree stock has risen 635.40%.
Raven Industries will split 2-1 on July 25. Raven Industries is an industrial manufacturer of a variety of engineered and high-tech products and has a market capitalization of $1.28 billion. Its stock price at $70.37 is higher than competitor Carlisle Companies (NYSE: CSL) at $52.76 and Textron (NYSE: TXT) at $25.69. Raven hit a low in 2009 of $16.43 and has increased 328.30% since.
The Toro Company (NYSE: TTC) will split 2-1 on June 29. Toro designs, manufactures, and markets professional turf maintenance equipment and services and has a market capitalization of $2.23 billion. Its $75.57 stock price is right on par with competitor Deere & Company (NYSE: DE) at $77.26 but higher than AGCO Corp.'s (NYSE: AGCO) $43.38. Toro hit a low in 2009 of $21.97 and has increased 254.54% since.
Under Armour will split 2-1 on July 9. Under Armour makes athletic apparel, footwear, and accessories for professional and amateur athletes and has a market capitalization of $5.56 billion. Under Armour shares have risen more than 300% since going public six years ago. Its stock price is $106.35, which is on par with NIKE (NYSE: NKE) at $101.55 but higher than Columbia Sportswear (NASDAQ: COLM) at $53.26.
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