Apple on Friday announced that its board of directors has approved a two-for-one stock split that will increase the number of authorized common shares to 1.8 billion from 900 million. Apple said that each shareholder at the close of business on Feb. 18, 2005 will receive one additional share of stock for every share they own. Trading will begin on a split-adjusted basis on Feb. 28, 2005.
Shares of Apple have nearly quadrupled in value over the last year on the success of the iPod. Last month, the company easily beat analysts’ expectations with its first quarter financial results. Apple posted a net profit of $295 million, or 70 cents a share, compared to income of $63 million, or 17 cents per share, in the prior year. Analysts surveyed by Thomson First Call had expected the company to earn 49 cents a share.
Apple stock closed Thursday’s session down 38 cents at $78.36. It reached a 52-week high of $81.99 on Wednesday.