LLY - Stock Split Watch: Is Eli Lilly Next?
2024-06-28 04:35:00 ET
The market has been ripe with stock splits in recent times, with companies from tech giant Nvidia to fast-casual restaurant chain Chipotle Mexican Grill announcing them. This occurred after these stocks soared in recent years, in many cases reaching into the thousands of dollars. Companies launch stock splits to lower the price of each individual share, making the shares more affordable for a broader range of investors.
Investors look for these opportunities for two reasons. First, they make it possible for buyers to take a small stake in a particular company without relying on fractional shares. And second, stock splits often show a company is confident about its future, with the idea that the stock could take off once again from its new lower level.
How can you identify a potential stock-split candidate? When a stock advances over time and eventually trades for several hundred dollars (or more), a company might consider launching a split. A pharmaceutical player that falls into that category today is Eli Lilly (NYSE: LLY) .
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Stock Split Watch: Is Eli Lilly Next?