Shares of a technology company Apple (NASDAQ: AAPL) jumped on Monday, rising to 5%. As of 2:03 p.m. EDT, the stock was up 4.7%.
The stock gain follows the division of the company’s stock. Shares of the tech company began trading on a split-adjusted basis on Monday morning. While the stock split may be one of the reasons for the stock’s strong gain on Monday, optimism may also be fueled by some bullish ratings from analysts.
Apple shares split on a 4-to-1 basis, finalizing a move announced in late July. Management said it had split the stock to make its shares available to a wider shareholder base.
A lower share price appears to have helped spur increased interest in Apple shares. The stock has risen sharply since the announcement of the stock split – and Monday’s move continues that momentum.
Also serving as a catalyst for the stock on Monday: Argus analyst Jim Kelleher raised his 12-month price target for the stock from a division-adjusted price of $ 112.50 to $ 150. Additionally, an Evercore ISI analyst reiterated an outperformance rating and an adjusted price target of $ 130. Both analysts cited the 5G rollout and Apple’s expected launch of a 5G iPhone as key catalysts on the horizon for Apple.
Investors should keep in mind that a stock split does not make Apple shares any more attractive than they were before the split. Each divided Apple share will own a quarter of the stake in the Apple company that a pre-split share held. Nonetheless, a stock split appears to have sparked a surge in interest in the tech giant’s shares.