Apple surprised everyone last week when they announced a stunning 7-1 stock split. Along with a large buy back program of Apple shares the stock had a large uptick by the end of last week.
Today the stock is $592 approximately which is a significant increase from what it was only a week ago. Carl Icahn, who is a very large investor in Apple stock, had been pushing Tim Cook, Apple’s CEO, to do a large buy back of Apple shares to correct their market value so that they were more in line with industry standards. Apple stock had been considered to be undervalued and it is likely Apple undertook this to:
- correct the value of the stock
- to make the stock psychologically more attractive to buy as its new value will be significantly cheaper than that of its current value.
All of this is to take place on June 2 with current investors and new trading values will be in effect for June 9 2014.