Netflix shares spiked 3% and reached an all-time high of $681.73 on Tuesday Jun 23. The split will be in the form of a stock dividend of six additional shares against each outstanding share. I am a staff writer at Forbes covering retail. The video streaming company's shares rose more than 2 percent in extended trading. © 2020, Nasdaq, Inc. All Rights Reserved. Netflix Inc. could be headed for a stock split. Netflix is asking shareholders to pave the way toward a drastic stock split. Shareholders approved a proposal to increase the maximum number of shares outstanding during an investors meeting on Tuesday. Netflix's stock price has more than doubled since last December, and with prices of shares nearing $700 today it announced plans (PDF) for a 7-for-1 stock split. The stock is up 55% over the past 12 months, and a massive 99% year-to-date. But it really doesn't matter -- with a few notable exceptions. If rumors are to be believed, the billionaire investor made approximately $2 billion in total from his entire Netflix holdings. Netflix (NFLX) just stole headlines with its 7-for-1 stock split. Account active Pedro Pascal and Jon Favreau on the Future of the Newest ‘Star Wars’ Franchise, PBS Masterpiece Announces Full Lineup for 50th Anniversary (EXCLUSIVE), Demi Lovato's 'Vote' Visual Vetoed at Billboard Awards Following Searing Performance of Anti-Trump Song. I have been at Forbes since 2013, first on the markets and investing team and more recently on the billionaires team. +0.09% The dividend will be payable on July 14, 2015, to stockholders of record at the close of business on July 2. Former Goldman hedge-fund manager says an ‘enormous wall of money’ is coming, 3 ways tech may help pro sports boost profitability amid the pandemic, Here are Wall Street’s favorite stocks for an election-relief rally. Companies enact stock splits in order to ma… We've come a long way from Qwikster. The stock will begin trading at the post-split price on July 15. Red-hot Netflix is splitting its stock -- seven times by Matt Egan @MattEganCNN June 24, 2015: 2:40 PM ET Netflix wants to make its red-hot stock more affordable. You can follow him on Twitter @Trey3Williams. Intraday Data provided by FACTSET and subject to terms of use. node.dataset.value : node.getAttribute('data-value'); if (selectedValue) { for (var j = 0; j < node.options.length; j++) { if(node.options[j].value === selectedValue) { node.options[j].selected = 'selected';break;}}}}}, Do Not Sell My Personal Information (CA Residents Only). The move to increase the number of shares has been met with discussions of a possible stock split. By 2015, Netflix stock price topped $700 a share for the first time. Netflix was trading at about $686 Wednesday, making it the second-highest share price on the S&P 500. We've come a long way from Qwikster. The new shares will be delivered by Netflix’s transfer agent, Computershare Trust Co. Netflix had 62.3 million subscribers worldwide as of the end of March, including 20.9 million outside the U.S., after adding a record 4.9 million subs in Q1. However, Netflix is currently trading at a P/E ratio of 176.86, which somewhat limits the upside to the stock. © Copyright 2020 Variety Media, LLC, a subsidiary of Penske Business Media, LLC. The authorization has been expanded from 170 million to 5 billion including preferred stock. In a news release, a spokesman for the company said the final result will be filled with the Securities and Exchange Commission in an 8K form on Thursday. Email me at ldebter@forbes.com. All quotes are in local exchange time. Netflix had previously announced that it was seeking approval from shareholders and its board for a stock split. This 1961 Jaguar E-Type Has Been Restored to Its Original Glory. A wealth of resources for individual investors is available at www.zacks.com. A split typically comes when a company’s share price is simply too high for investors or is outpacing prices of similar companies in its sector. Hopefully, the stock split will come in handy for the company and it can lure people to buy shares for less than a penny, without affecting its market cap. It is expected that the stock split will make Netflix more accessible to retail investors and help it to pool in more capital over the long term. While the Netflix stock split won’t necessarily change the company’s valuation, “It does make it easier for small investors to own shares,” said BTIG Research analyst Rich Greenfield. You may opt-out by, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. To read this article on Zacks.com click here. The video streaming company has enjoyed tremendous success of late, with shares climbing 58% over the last 12 months and trading at about $681 per share as of Tuesday's close. The company said shares purchased between July 2 and July 14 will come with a “due bill,” which will entitle the buyer to six additional shares for each share purchased. Netflixhas approved a 7-for-1 stock split, the company said Tuesday. )+[a-z]{2,})$/i, failureMessage: "A valid email address is required"});var dom2 = document.querySelector('#form1783 #field2');var field2 = new LiveValidation(dom2, {validMessage: "", onlyOnBlur: false, wait: 300});field2.add(Validate.Presence, {failureMessage:"This field is required"});var dom11 = document.querySelector('#form1783 #field11');var field11 = new LiveValidation(dom11, {validMessage: "", onlyOnBlur: false, wait: 300});field11.add(Validate.Custom, {against: function(value) {return !value.match(/(telnet|ftp|https?):\/\/(?:[a-z0-9][a-z0-9-]{0,61}[a-z0-9]\.|[a-z0-9]\. Intraday data delayed at least 15 minutes or per exchange requirements. Netflix could more than double Western Europe subscribers by 2019, After uproar, Twitter explains why New York Post story on Hunter Biden was blocked, Nio soars to record after JPMorgan selects it as ‘long-term winner’ in China’s EV market, Tesla's stock set to snap 6-day win streak, while Baird analyst boosts target by 25%, ‘Our return sucks over the past few years…and we’ve just run out of time,’ says $10 billion value investor calling it quits, ‘Young and dumb’ traders have created a ‘total nightmare’ in the stock market, fund manager warns, A 90x return in five years? Click to get this free report >>, Want the latest recommendations from Zacks Investment Research? Shares held in the company are currently at 170 million. In terms of how often we see something like that, this comes about a year after Apple announced its own 7-for-1 split. Reportedly, Icahn sold his remaining holdings in Netflix last Wednesday and made around $993 million. For Netflix specifically, the company also wants to make its stock more accessible to employees, given that they all receive options grants and many participate in an options-purchase program. The stock dividend will be payable on July 14 to shareholders as at July 2, according to the statement. The company currently banks heavily on financial institutions and hedge funds, who can apparently endure the risk of this hefty stock valuation. In a statement Tuesday, the company announced that its board has approved the split. All Rights Reserved, This is a BETA experience. According to reports, the billionaire investor first took a 10% stake in Netflix in 2012 at a cost of $58 a share. However, it remains unclear as to how Netflix will be able to attract retail investors, given a current volatile market valuation. Privacy Notice and Better-ranked stocks in the technology sector include Attunity, Ltd. ATTU and AVG Technologies N.V. AVG , both sporting a Zacks Rank #1 (Strong Buy) and Blue Nile Inc. NILE with a Zacks Rank #2 (Buy). I have been at Forbes since 2013. Sign up to 10 Things Before the Opening Bell, By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider Netflix was widely expected to split its stock after announcing plans to do so in April and then gaining shareholder approval to increase its number of authorized shares this month, which is a preliminary step in a split. A spokesman for Netflix told MarketWatch that Hastings plans to seek board approval for a stock split. Could Chadwick Boseman Be the First Person to Earn Two Posthumous Oscar Acting Nominations in Same Year? Today, you can download 7 Best Stocks for the Next 30 Days. Yes! The proposal will see Netflix’s Netflix, after its shares closed at an all-time high of $681.19 each Tuesday, said its board approved a seven-for-one stock split to take effect July 14. Netflix's board of directors has approved a seven-for-one stock split, the company announced on Tuesday, at a time when its stock is trading at … In July of that year, with its stock price at $686.91, Netflix announced a seven-for-one stock split. The company’s market cap is currently more than $41 billion. Rumors of Netflix' stock split made the rounds when the company approved a massive increase in its share authorization. © 2020 Verizon Media. My work has also appeared in Money Magazine and CNNMoney.com. On a melancholy note, the split will come almost five years to the day after Blockbuster's attempt at a reverse stock split to avoid delisting fell through. In after-hours trading Tuesday, Netflix shares were up 2.7%, to $699.60 per share.
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