Microsoft Stock Split: Will MSFT Stock Split Again?
Latest Microsoft Stock Price
When an investor makes an investment decision and looks up to Microsoft’s history, a stock split becomes an important part of the decision-making process. Every investor wants to know how many times a particular company share did split in the past and by what ratios. However, a stock split does not change anything fundamentally for the company, it only brings about sentimental change, but it catches everybody’s eye.
| Metric | Value | Trend |
|---|---|---|
| Current Market Cap | $2.4 T | Higher |
| Trading Volume | $10.6 M | Steady |
Microsoft since its listing on Nasdaq has come a long way and now it is worth over $2T. The stock price is above $300 but the company has not announced a stock split since 2003.
History of Microsoft Stock Split
Microsoft was founded in 1975 by Bill Gates and Paul Alien. It began its trading on Nasdaq on 13th March 1986 under the ticker symbol MSFT and set its IPO price at $21 per share.
Since then it has been a memorable journey for the stock and it had nine stock splits in all these years, these splits are mainly concentrated in the era 1987 to 2000, and its last split was in the year 2003.
But as a matter of fact, if anybody had invested at the time of IPO, buying even one share, he/she would have 288 shares as of today. Here is the summary of the Microsoft stock split tabulated below:
| Date | Split Ratio | Price Before Split | Price After Split |
| Sept 18, 1987 | 2:1 | $114.50 (Sep 18) | $53.50 (Sep 21) |
| April 12,1990 | 2:1 | $120.75 (Apr 12) | $60.75 (Apr 16) |
| June 26,1991 | 3:2 | $100.75 (Jun 26) | $68.00 (Jun 27) |
| June 26, 1991 | 3:2 | $112.50 ( Jun12) | $75.75 (June 15) |
| June 12, 1992 | 2:1 | $97.75 (May 20) | $50.63 (May 23) |
| May 20, 1994 | 2:1 | $152.875 (Dec 6) | $81.75 (Dec 9) |
| December 6, 1996 | 2:1 | $155.13 (Feb 20) | $81.63 (Feb 23) |
| March 26, 1999 | 2:1 | $178.13 (Mar 26) | $92.38 (Mar 29) |
| February 14, 2003 | 2:1 | $48.30 (Feb 14) | $24.96 (Feb 18) |
*Source: Microsoft Investor Relations
Microsoft has undergone both 2-for-1 and 3 for 2 stock splits. A 2-for-1 stock split means that one additional share is given for every share held. In a 3 for 2 stock split, an additional share is given for every two numbers of shares held.
Microsoft Stock Forecast
Will there be a Microsoft Stock Split in 2023?
It has been a long time since Microsoft announced the share split. Considering the present scenario, it is highly unlikely that any split will be announced in the near future. But the matter of fact is that very few companies have announced a share split in the last two decades.
In history, all the splits have come when shares have crossed $100 except in 2003, but this time share price is over $300 but there is no sign of the split from the management.
Added to it, in its fiscal 2023 third quarter which concluded on March 31, Microsoft experienced a 7% increase in revenue compared to the previous year. Additionally, their earnings per share (EPS) saw a growth of 10%, all of this despite the persistent challenges posed by broader economic conditions. Notably, the rising interest in artificial intelligence (AI) has the potential to further enhance Microsoft’s performance in the future.
One factor for delaying the Microsoft stock split could also be to maintain influence in the Dow Jones Industrials. The Dow Jones is a price-weighted index and several rivals of Microsoft in terms of market capitalization have a share price much greater than that of Microsoft Inc.
A split is likely to weaken Microsoft’s position in the Dow Jones and that seems to not attract management as they try to establish Microsoft Inc as a leader in the tech industry. It is a million-dollar question when Microsoft will announce the next split, and in all considerations, it is not likely to do so in the near future, but Microsoft is a brilliant company, and its share price since 1986 has shown that a split can provide short-term positive momentum to the share price.
In 2022, Microsoft faced a challenging period due to a decline in demand for its products, primarily stemming from a slowdown in the personal computer (PC) market. The lackluster performance of the stock this year can also be attributed to the impact of higher inflation and the tightening of monetary policy.
Previously, there were expectations of a stock split by Microsoft, but the company did not announce a stock split during their recent earnings release in June 2023. Any potential future stock split by Microsoft in 2023 will be determined based on factors such as the stock price, the company’s financial performance, and overall market conditions.
Microsoft Split 2023: No Split in the Last 20 Years
The last Microsoft stock split announcement was on January 16th, 2003, trading began with the new price on February 16th, 2003. Since then, there has been no announcement regarding the same. It has been almost 20 years since the last split. One more thing that stands out is that Microsoft aggressively announced splits in the first decade, especially from 1990 to 1999 and they had seven splits in these years. But, as the dot com bubble hit the market, Microsoft Inc shares also slumped in the period from 2000 to 2002.
Another thing noticeable in the history of the Microsoft stock split is that all the splits were initiated after the share price crossed $100. But the split of 2003 was different, neither share price cross $100 nor did it seem that it will cross that mark soon. Yet Microsoft Inc announced a 2:1 share split at just a share price of $48.
Also, the 2003 share split was a memorable moment for the shareholders for another reason. It was the first time that Microsoft Inc declared a regular dividend. Declaring a dividend at any board meeting shows the confidence and faith of management for the long-term growth of the company. Microsoft believed that the step of a share split even at $48 and simultaneous declaration of the dividend was a strategic move to attract a broader range of investors in the market.
Read: Tesla Stock Split
Also read: Amazon Stock Split
MSFT Stock Split 2023: The Share Splits Were Successful
Microsoft stock split history also provides another very interesting input. Any share split is meant to provide a short-term push to the stock and in the case of Microsoft Inc, most share splits were successful in doing so. The only exception was the 1987 split when the share price on the following day was less than the proportional decrease in the share price due to the split. Specifically, the closing price was $114.50 on 18th September 1987, which should have opened at $57.25 on the following day, but it opened at $53.50.
Otherwise, all the other splits were successful and it implied gain post-split. The largest gain was from the 1996 split when the 2:1 stock split implied a $76.39 price on the following day, but it was $81.75, implying a 7% gain just due to the split. It is a known fact that splits do not have any theoretical impact on the balance sheet or the market capitalization of the company but the 1996 split showed that shareholders do give a lot of importance to splits before making investments.
Microsoft Stock Price Prediction for the Next 5 Years (Aggregated)
- Microsoft Stock Price Prediction 2023 is $391
- Microsoft Stock Price Prediction 2024 is $451
- Microsoft Stock Price Prediction 2025 is $50
- Microsoft Stock Price Prediction 2026 is $558
- Microsoft Stock Price Prediction 2027 is $601
Latest Microsoft News
- Microsoft has received provisional approval from the U.K.’s Competition and Markets Authority (CMA) for its $69 billion purchase of video game maker Activision Blizzard. Earlier, the CMA had concerns about competition in cloud gaming and blocked the acquisition. In response, Microsoft restructured the deal. Instead of acquiring Activision’s cloud gaming rights, they will be sold to Ubisoft Entertainment before the deal is finalized. This makes Ubisoft a key content supplier for cloud gaming services. The CMA believes this new arrangement addresses most of their concerns. However, they still have some limited worries about certain provisions in the sale to Ubisoft. Microsoft has offered additional remedies to address these concerns, and the CMA is consulting on them until October 6.
- Crayon had announced the renewal of its Microsoft Azure Expert Managed Service Provider status.
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