Shares rose to $93.80 before paring gains to $93.62, up 1.5 percent, at 1:46 p.m. in New York.
The new shares having been distributed after the close on June 6. Every Apple stockholder got six additional shares for every share they owned as of June 2. The distribution increased Apple’s outstanding stock from about 861 million shares to about 6 billion shares.
To adjust for that swing, Apple’s stock price fell from the closing price of $645.57 on June 6 to the $91 to $94 range today.
The company announced plans for the stock split–its first since 2005—on April 23, alongside a $30 billion increase to its share buyback plan and a bigger dividend. Since then, the stock has risen 22 percent.
A stock split increases the number of shares outstanding while reducing the price of each share. The move doesn’t affect the value of the company, but it does put the price of the shares within reach of more individual investors, potentially boosting the demand for the stock.
The lower price may clear the way for the company to be included among the 30 stocks in the Dow Jones industrial average. The closely watched benchmark is supposed to mirror key sectors of the economy, a role that seems perfectly suited for Apple given the popularity of the company’s products and its $171 billion in annual revenue.
Even though the overall stock market has been soaring, only 57 splits have been completed since 2009 among companies in the Standard Poor’s 500. That compares with 375 splits from 1997 through 2000, a period that coincided with the dot-com boom.
Apple has completed 2-for-1 splits on three previous occasions: May 1987, June 2000 and February 2005. The stock rose 2 percent in the first year after the 1987 split and surged by 60 percent in the first year after the 2005 split. The shares plunged 57 percent in the first year after the 2000 split, which occurred amid a steep downturn in technology stocks.
Before the split, the all-time high for Apple’s stock stood at $705.07. With the split, that peak has now been revised to $100.72. Apple went public in December 1980 at a split-adjusted 39 cents per share.