After Amazon, Will These 5 High-Priced Stocks Split Their Shares?

After Amazon, Will These 5 High-Priced Stocks Split Their Shares?

Investors should really just focus on the business of a company, not whether it will split its stock.

After more than 20 years and a 5,000% increase in returns, Amazon ( AMZN 2.70% ) is splitting its stock again. At over $3,000 a share, the e-commerce giant is one of the most expensive stocks on the market. The split will cause the stock to trade at around $150 per share.

Of course, that means nothing to investors who will receive 20 times the number of shares they currently own, meaning nothing changes in their portfolios, but splits are generally seen as a bullish signal and a shareholder-friendly move. Image source: Getty Images. But Amazon is a much different company now than it was in 1999, the time of its last split, a veritable behemoth in size and scope. Stock splits and stock buybacks, like the $10 billion worth Amazon ordered up at the same time that it announced the split (something Amazon also hasn’t done in a decade), could be how Amazon helps return more value to shareholders.

Amazon’s move also comes after several other high-flying tech names, including Alphabet , Apple , and Tesla , announced stock splits of their own.

While Warren Buffet’s Berkshire Hathaway remains the highest-priced stock right now at over $504,000 a share, there are five other companies whose stock prices exceed $1,500 each and would seem to be good candidates to also engineer a stock split . Image source: Getty Images. 1. NVR (Current price: $4,854 per share)

The most expensive stock on the market after Berkshire, NVR ( NVR 1.45% ) builds homes under the Ryan Homes brand and offers mortgages for homebuyers through its NVR Mortgage Finance subsidiary.

It is the fourth-largest homebuilder in the U.S. by revenue behind D.R. Horton , Lennar , and PulteGroup , reporting almost $9 billion in revenue, almost all of which came from its homebuilding activity. Riding the housing boom brought on by the pandemic, sales rose 19% last year as it closed on 21,540 homes, 9% more than the prior year.

NVR has never split its stock since going public in 1993, so there doesn’t appear to be any reason it would begin now. But it does maintain a regular stream of buyback authorizations, having announced a new $500 million program last month, which it says “is a continuation of the stock repurchase program that began in 1994 and is consistent with NVR’s strategy of maximizing shareholder value.” 2. Seaboard (Current price: $3,927 per share)

Seaboard ( SEB 0.76% ) is arguably best known as being one of the largest pork processors in the U.S., ranking third in hog production and fourth in processing, but it actually generates the lion’s share of its revenue from Seaboard Overseas and Trading Group, a global trading company that transports and markets some 14 million metric tons of wheat, corn, soybeans, soybean meal, and other commodities annually. In 2021, the business generated revenue of $5.1 billion, or 56% of the total.

In reality, Seaboard is more of a conglomerate. It also has a container ship division, a sugar and alcohol business in Argentina, an energy generation unit in the Dominican Republic, and a turkey business through a 50% ownership stake in Butterball. It also produces jalapeno peppers in Honduras.

Seaboard has been around since 1918 but went public in 1959 through a merger with Hathaway Industries. It’s a thinly traded stock on the American Stock Exchange, and the Bresky family controls 77% of the stock. Like NVR, Seaboard’s shares have never split, and because of the controlling interest of the Breskys, it does not seem like it will split its stock anytime soon. Image source: Getty Images. 3. Booking Holdings (Current price: $2,202 per share)

Back when it was called, Booking Holdings ( BKNG -1.88% ) split its shares once, but it was a 1-for-6 reverse split . The travel company had been in difficult straits in 2000 as the dot-com boom imploded, but by the time the reverse split was done , Priceline was already on its way back to health.

Rather than a need to hold off a delisting, the online travel agent said the split was done to better reflect its health and growth and make it a more tradeable issue. Today, Booking Holdings is one of the leading travel agencies and it got its name after Priceline acquired, a Dutch online travel site, in 2005.

While a stock split might seem a good way to reinvigorate shares by making them available […]

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