What happened
Shares of tech company Apple (AAPL 0.52%) jumped on Monday, rising as much as 5%. As of 2:03 p.m. EDT, the stock was up 4.7%.
The stock's gain follows the company's stock split. Shares of the tech company started trading on a split-adjusted basis Monday morning. While the stock split may be one reason for the stock's sharp gain on Monday, optimism may also be fueled by some bullish notes from analysts.
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So what
Shares of Apple split on a 4-for-1 basis, finalizing a move that was announced at the end of July. Management said it split the stock to make its shares available to a wider base of shareholders.
A lower price tag on the stock seems to have helped drive more interest in Apple shares. The stock has been rising sharply ever since the stock split was announced -- and Monday's move extends this momentum.
Also serving as a catalyst for the stock on Monday: Argus analyst Jim Kelleher increased his 12-month price target for the stock from a split-adjusted price of $112.50 to $150. Additionally, an Evercore ISI analyst reiterated an outperform rating and a split-adjusted $130 price target. Both analysts cited the rollout of 5G and Apple's expected launch of a 5G iPhone as key catalysts on the horizon for Apple.
Now what
Investors should keep in mind that a stock split doesn't make Apple shares more attractive than they were before the split. Each split Apple stock will have a fourth of the ownership in Apple's business that a pre-split share had. Nevertheless, a stock split seems to have triggered an uptick in interest for the tech giant's shares.
