CMG - After Chipotle's Stock Split Should You Buy Before July 24?
2024-07-18 05:10:00 ET
Chipotle Mexican Grill (NYSE: CMG) finally executed its much-anticipated 50-for-1 stock split last month. The fast-casual pioneer saw its stock price rise to well over $3,000 before the split, ultimately deciding that reducing the stock price was necessary.
Chipotle joins a growing list of companies deciding to split, and splits have become popular again after years of falling out of favor. Why?
There are a few factors that go into a decision like this (including some involving how stock options are awarded to employees and how they exercise those options). I think the rise of the retail trader probably has some influence in the decision. Retail traders have become a substantial part of the market that companies can't ignore. A record was set back in February when the average retail volume per day hit $1.5 billion. A split allows for more access to a wider range of this growing segment.
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After Chipotle's Stock Split, Should You Buy Before July 24?