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Tesla (NASDAQ:TSLA) stock is in a bit of a tailspin recently. Since topping $1,200 per share last fall, Tesla shares have fallen to the mid-$600 range per share today. Despite that recent decline, however, the stock has still rallied tremendously over a longer term horizon.
As a result, Tesla's management announced a forthcoming three-for-one stock split on Friday. Will this upcoming stock split be enough to get Tesla stock moving forward again? Here's what you need to know.
Ticker Company Price TSLA Tesla, Inc. $639.30
Tesla Asks for Shareholder Approval
First off, the proposed split isn't a done deal yet. Oftentimes, companies simply announce a stock split and that's that. However, in this case, Tesla needs to obtain shareholder approval to execute its planned stock split.
This is because Tesla currently has a cap at a maximum of two billion authorized shares of outstanding Tesla stock. However, there are currently 1,036,390,569 shares of existing TSLA stock. This means that Tesla will have roughly 3.1 billion shares of stock after its proposed split, which is well over the present two billion cap. Thus, Tesla is requesting shareholder approval for an Authorized Shares Amendment to lift the permittable outstanding share count well above three billion. There's no reason to think, however, that shareholders would fail to approve this request.
Why Is Tesla Splitting its Stock?
Tesla stock has been trading at a high nominal price for quite awhile. So what explains the company's move to split the stock right now? In its proxy statement, Tesla called out its employee compensation as a primary driver behind the move:
"We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity, all of which, in our view, may help maximize stockholder value. In addition, as retail investors have expressed a high level of interest in investing in our stock, we believe the Stock Split will also make our common stock more accessible to our retail shareholders."
In addition, as that statement highlights, Tesla believes this will make TSLA stock more appealing for retail investors. And that's probably true. Here's why.
What's it Mean for Tesla Shareholders?
In a stock split, the value of your investment doesn't change. If you own 100 shares of Tesla stock at $750 per share on the day of the split, for example, you'll own 300 shares at the new split price of $250 once the transaction goes into effect. In each case, the underlying stock is worth $75,000.
While the stock split itself doesn't change an investment's value, it can change sentiment. As Tesla's explanation above showed, it may help newer employees feel that the shares are still at an accessible price to invest in. Same goes for some investors who may not have much capital to work with. A $250 stock feels more approachable than a $750 one.
Finally, there's an impact in the options market, as well. To buy a call option on Tesla, for example, it often costs thousands of dollars per contract due to the high stock price of the underlying company. Making Tesla's stock cheaper will also make its corresponding options more affordable for average retail traders. As much of Tesla's overall trading activity occurs in put and call options, this split could help level the playing field for smaller investors.
TSLA Stock Verdict
To be clear, splitting one's stock isn't a foolproof move. Amazon.com (NASDAQ:AMZN), for example, just issued a 20:1 stock split of its shares and that did nothing to support the stock price. AMZN stock fell 12% during the week as the split went into effect. So, to be clear, prevailing market conditions can outweigh factors such as a stock split.
In general, however, a stock split should be a positive event for a company's share price on average. And with Tesla shares down so sharply in recent months, any sort of positive catalyst could be enough to turn things around. It's not just the stock split either. On Friday, UBS (NYSE:UBS) upgraded TSLA stock and gave it a $1,100 price target. These factors could give Tesla a boost in coming weeks.
On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Tesla's Stock Split: What You Need to Know appeared first on InvestorPlace.
InvestorPlace-股票市場新聞、股票建議和交易提示
$特斯拉(TSLA.US)$最近股市有點暴跌。自去年秋天突破每股1,200美元以來,特斯拉的股價今天已跌至每股600美元的中值區間。然而,儘管最近出現了下跌,但從較長期來看,該股仍大幅上漲。
因此,特斯拉管理層週五宣佈了即將進行的三送一股票拆分。即將到來的股票拆分是否足以讓特斯拉的股票再次向前推進?這是你需要知道的。
代碼機 公司 價格特斯拉特斯拉公司:639.30美元
特斯拉尋求股東批准
首先,擬議中的拆分還沒有敲定。通常,公司只是簡單地宣佈股票拆分,僅此而已。然而,在這種情況下,特斯拉需要獲得股東的批准才能執行其計劃中的股票拆分。
這是因為特斯拉目前最多有20億股特斯拉已發行股票的授權股份上限。不過,特斯拉目前的存量為1,036,390,569股。這意味着,在擬議的拆分後,特斯拉將擁有約31億股股票,遠高於目前20億股的上限。因此,特斯拉正在請求股東批准一項授權股份修正案,將允許的流通股數量提高到遠遠超過30億股的水平。然而,沒有理由認為股東不會批准這一請求。
為什麼特斯拉要拆分股票?
很長一段時間以來,特斯拉股票一直處於較高的名義價格。那麼,如何解釋該公司現在拆分股票的舉動呢?在委託書中,特斯拉稱其員工薪酬是這一舉措背後的主要推動力:
我們相信,股票拆分將有助於重置我們普通股的市場價格,使我們的員工在管理他們的股本時有更大的靈活性,在我們看來,所有這些都可能有助於實現股東價值的最大化。此外,由於散户投資者對投資我們的股票表現出了高度的興趣,我們相信股票拆分也將使我們的普通股更容易為散户股東所接受。
此外,正如這份聲明強調的那樣,特斯拉認為,這將使特斯拉的股票對散户投資者更具吸引力。這很可能是真的。原因如下。
這對特斯拉的股東意味着什麼?
在股票拆分中,你的投資價值不會改變。例如,如果你在拆分當天以每股750美元的價格持有100股特斯拉股票,那麼一旦交易生效,你將以新的拆分價格250美元持有300股特斯拉股票。在每一種情況下,標的股票的價值都是7.5萬美元。
雖然股票拆分本身不會改變一項投資的價值,但它可以改變投資者的情緒。正如特斯拉上面的解釋所表明的那樣,這可能會幫助新員工感覺到,這些股票仍然處於可以投資的價格。對於一些投資者來説也是如此,他們可能沒有太多的資本可供合作。250美元的股票比750美元的股票更容易接近。
最後,期權市場也會受到影響。例如,要購買特斯拉的看漲期權,由於標的公司的股價很高,每份合同的成本往往高達數千美元。讓特斯拉的股票變得更便宜,也會讓普通散户交易員更容易買得起相應的期權。由於特斯拉的整體交易活動有很大一部分發生在看跌期權和看漲期權上,這種拆分可能有助於為規模較小的投資者創造公平的競爭環境。
特斯拉股票的判決
需要明確的是,分拆股票並不是萬無一失的舉措。Amazon.com例如,納斯達克(Sequoia Capital:AMZN)剛剛發行了20:1的股票拆分方案,但這對支撐股價毫無幫助。拆分生效後,AMZN的股價在一週內下跌了12%。因此,需要明確的是,當前的市場狀況可能會超過股票拆分等因素。
然而,總的來説,股票拆分對一家公司的平均股價來説應該是一個積極的事件。近幾個月來,特斯拉股價大幅下跌,任何積極的催化劑都足以扭轉局面。這也不僅僅是股票拆分的問題。星期五,瑞銀集團(紐約證券交易所股票代碼:瑞銀)上調特斯拉股票評級,將其目標價定為1,100美元。這些因素可能會在未來幾周給特斯拉帶來提振。
在本文發表之日,Ian Bezek並未(直接或間接)持有本文所述證券的任何頭寸。本文中表達的觀點是作者的觀點,受InvestorPlace.com發佈指南的約束。
特斯拉的股票拆分:你需要知道的事情首先出現在InvestorPlace上。