Chipotle announced Tuesday that it will split its stock 50-for-1 in June, and investors are watching to see which company might be next. Shares of the restaurant chain rose more than 5% on Wednesday following the news. Some stocks that announce stock splits typically do well in the months after the split, including Amazon, which saw its stock price rise by about 4% in the three months after announcing a split in 2022. Stock splits are done simply to make a company’s stock cheaper. The value of the business has not changed at all. For example, after a 2-for-1 stock trade, the holder of one $20 share now holds two $10 shares. CNBC uses the CNBC Pro Stock Screener tool to screen for companies with higher stock prices that may undergo stock splits. Interestingly, Chipotle has been on our screens long before Tuesday’s board decision. CNBC examined the following criteria: Stocks trading above $500 per share Stocks on the list have doubled the market’s returns over the past 12 months Stock prices are within 10% of their 52-week highs Stocks are part of the S&P 500 ( Click here to add this screener to your professional stock screener tool. You can also customize it further yourself.) While a stock split doesn’t change anything except the price per share and the number of shares outstanding, History shows that stocks can then temporarily rise from increased accessibility. For example, an individual investor is more likely to hold 100 or 500 shares of a low-priced stock than 1 or 5 shares of a high-priced stock. Chipmaker and top artificial intelligence company Nvidia is among them, with its stock price soaring nearly 79% in 2024 alone. The stock is down about 8% from its 52-week high of $974 hit on March 8. CEO Jensen Huang told CNBC’s Jim Cramer at the GTC conference on Tuesday that the company would consider splitting its stock in the future. There is precedent for such moves, with Nvidia conducting a 4-for-1 split in July 2021. (It’s easier),” Huang said. The leading streaming platform Netflix has also undergone excessive spin-offs in the past, most recently a 7-1 split in June 2015. Its shares have risen nearly 28% in 2024 and are now just 1% below the new 52 shares. A new weekly high. NFLX has peaked Netflix stock so far this year. JPMorgan Chase & Co. reiterated its positive outlook on Netflix on Wednesday, adding that it is well-positioned to drive revenue growth. The bank added that the stock is only about 12% below its all-time high set in November 2021. Other high-priced stocks on the list with a history of stock splits include Eli Lilly and Lam Research.
