Netflix approves 7-for-1 stock split after shares hit all-time high

Before you go, we thought you'd like these...
Before you go close icon
Netflix Seven-for-One Stock Split


Netflix, after its shares closed at an all-time high of $681.19 each Tuesday, said its board approved a seven-for-one stock split to take effect July 14.

Companies enact stock splits in order to make high-priced shares more affordable, thereby widening the pool of potential shareholders. While the Netflix stock split won't necessarily change the company's valuation, "it does make it easier for small investors to own shares," said BTIG Research analyst Rich Greenfield.

In after-hours trading Tuesday, Netflix shares were up 2.7%, to $699.60 per share.

Netflix's stock split will be in the form of a stock dividend of six additional shares of common stock for each outstanding share of common stock. The dividend will be payable on July 14, 2015, to stockholders of record at the close of business on July 2.

Netflix stock will begin trading at the post-split price on July 15. The company said shares purchased between July 2 and July 14 will come with a "due-bill," which will entitle the buyer to six additional shares for each share purchased.

The new shares will be delivered by Netflix's transfer agent, Computershare Trust Co.

Netflix shares have climbed to record highs in the past three months, particularly on investor enthusiasm about the company's international expansion plans.

More from
Amazon Acquires Spacey's 'Elvis & Nixon'
Watch: 'Heroes Reborn' Gets Dark & Depressing New Trailer
TuneIn and PBS Kids Go Live On the Xbox One

Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading