There have been nine stock splits for Microsoft stock (symbol: MSFT). The most recent stock split for Microsoft took place on February 18th, 2003.
Microsoft has always left all its competitors in the shade. It has outdone both in terms of stock performance and popularity among its users. The outstanding stock price performance makes the investors earnestly wait for the stock split announcement. Based on the market cap and stock price performance, it is inevitable that the company will undergo a stock split in 2022.
Microsoft Stock Split History
| Date | Ratio | Cumulative Multiple |
|---|---|---|
| 18 February 2003 | 2:1 | x288 |
| 29 March 1999 | 2:1 | x144 |
| 23 February 1998 | 2:1 | x72 |
| 09 December 1996 | 2:1 | x36 |
| 23 May 1994 | 2:1 | x18 |
| 15 June1992 | 3:2 | x9 |
| 27 June 1991 | 3:2 | x6 |
| 16 April 1990 | 2:1 | x4 |
| 21 September1987 | 2:1 | x2 |
Microsoft kick-started with IPO prices at $21 per share. Since then, Microsoft has chronicled its history in the stock market. It has undergone nine overall stock splits after the firm was founded. The splits are significantly saturated between 1987 and 2000. It underpinned the last split in 2003.
Interestingly, if you had purchased even a single share at the time of IPO, you could own almost 286 shares today. Microsoft has witnessed 2-for-1, and 3-for-1 stock splits as a firm in these years.
Microsoft Successful Share Splits
Usually, stock splits are deemed to push stock prices and boost annual revenues. Over the period, Microsoft stock splits have proven to be very juicy and fruitful for the company. However, the stock split of 1987 is an exception when; the day following the split witnessed a decline in stock prices. To be more specific, the closing price was $114.50 on September 18, 1987. The opening price for the next day was presumed to be $57.25, but it turned out to be $53.50.
Speaking of the rest, all the splits were successful and germinated plenty of profits for the company post-split. The peak profit was achieved following the 2:1 stock split from 1996, which implied a $76.39 price the next day of the stock split. This stock split pocketed the company with a 7% profit.
It is well-established that stock splits do not impact the balance sheets of a business, but 1996 entailed a different story. It indicated that investors do consider splits prior to making an investment.
Do We Expect Microsoft Stock Split in 2022?
With the stock prices at the height of $300 per share, it is plausible that you expect a stock split. Microsoft is trading at a $2.3 trillion valuation and will definitely be looking to bag more wealth while it is hovering high in the market. Here, to support the point, we put forth the example of Apple, which split its stock into the 4-for-1 division in 2020 when its stock prices were just $400 per share.
Hence, there are chances that Microsoft will split its stock, and you may hear the news anytime sooner!
FAQs
How often does Microsoft stock split?
The pattern is random, but the company has undergone nine stock split events since the IPO.
Where Will MSFT stock be in 10 years?
The economists forecast through their proficient analysis that the share prices of the firm will reach $810 IN 2030.
When did MSFT split last?
The last time Microsoft witnessed a stock split was February 18, 2003, which was officially announced on January 16, 2003. The split ratio was 2-for-1.
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