Always keep track of stock splits.
While splits don’t change the value of a stock, they can serve as a positive signal. This can then lead to further liquidity, improved accessibility, and overall attractiveness of a stock.
After all, if there’s an attractive $1,000 stock about to split 10:1, more investors are likely to jump in, hoping to catch the next potential run higher.
Plus, according to Morningstar.com, “Splits matter – because these stocks outperform after the announcement, by a lot. Average returns one year later are 25% vs. 12% for the S&P 500 SPX as a whole, say researchers at Bank of America. It’s worth brushing up on stock splits now, for two reasons. Stock splits are picking up again after a decade-long lull.”
That being said, here are a few stock splits you may want to consider.
O’Reilly Automotive
Just days ago, O’Reilly Automotive (ORLY) traded at over $1,000 a share.
It’s now at $90 a share after the company split its stock 15:1, making it even more attractive at a lower cost. Again, nothing changed fundamentally. The stock is now cheaper post-split.
“This split will make our common stock more accessible to our team members, enabling them to acquire whole shares, rather than fractions, more readily through our stock purchase program, which allows them to purchase stock conveniently through payroll deductions at a 15% discount. We feel this is the right time to split the stock and further include our team members in the next chapter of growth for Team O’Reilly,” says CEO Brad Beckham.
Analysts like the stock here, too. Truist, for example, just raised its price target on split-adjusted ORLY shares to $103 with a buy rating.
ARK 21Shares Bitcoin ETF
The ARK 21Sharess Bitcoin ETF (CBOE: ARKB) will split its stock 3:1 on June 16. All in an effort to help make the stock even more accessible.
At the moment, the ARKB ETF trades at $108.45 after rallying from a low of $75 in April.
Fueling upside, regulatory developments are contributing to Bitcoin’s legitimacy and appeal. In addition, President Trump has reportedly told advisors that he wants comprehensive crypto regulation on his desk by August – signaling a more proactive and constructive stance toward digital assets.
In fact, he has already laid the groundwork for a strategic Bitcoin reserve, marking a historic shift in how the federal government views cryptocurrencies.
And, according to Standard Chartered, Bitcoin’s run has only gotten started.
Geoffrey Kendrick, the bank’s global head of digital asset research, believes Bitcoin could reach $500,000 before the end of Trump’s second term. He cites a broader institutional shift, falling volatility, and increased accessibility as key factors that will push the asset higher.
All of which could fuel further upside in related Bitcoin stocks and ETFs, such as ARKB.
Interactive Brokers
Interactive Brokers (NASDAQ: IBKR) just announced a 4 for 1 stock split.
So, for every share owned, the investor will receive three additional shares. The record date for the split is June 16. The split will be adjusted at the market opening on June 18.
The split is also supported by strong earnings growth. In its first quarter, revenue of $1.43 billion was up 19% year over year. Customer accounts jumped 32% year over year to 3.62 million, as consumer equity soared 23% to $573.5 billion. However, EPS of $1.88 did miss by five cents. Still, overall earnings and growth were solid.
IBKR also increased its dividend to 32 cents. It’s expected to be paid on June 13 to shareholders of record as of May 30.
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