Many investors could be diagnosed with a fever. It's not the flu. Instead, their condition can be blamed in large part on Alphabet and Amazon.
These two giant companies announced 20-for-1 stock splits earlier this year. And now a lot of investors appear to have a case of stock-split fever. They're anxiously looking for other stocks that could split.
You can cross Berkshire Hathaway off the list. Even though Berkshire's class A shares trade at more than $518,000, CEO Warren Buffett is dead set against splitting the stock. Berkshire's class B shares offer investors a more affordable alternative, anyway.
But there are other companies with super-high share prices that could consider splits. Here are the three best stock-split candidates on the planet after Alphabet and Amazon.
With the lone exception of Berkshire Hathaway's class A shares, no other stock trading on the major U.S. exchanges has a higher share price than NVR (NVR 0.86%). The homebuilder/mortgage bank's share price currently tops $4,400.
Unsurprisingly, NVR usually ranks near the top of any list of potential candidates for stock splits. The stock's price has consistently been greater than both Alphabet's and Amazon's over the past couple of decades. However, NVR has never conducted a stock split in its nearly 30 years of trading as a public company.
The company's incoming CEO, Eugene Bredow, could be more favorable toward a stock split, though. Bredow will take the helm as president and CEO pending shareholders' election of current CEO Paul Saville as executive chairman of the board.
NVR faces interest rate increases that are likely to negatively impact both its homebuilding and mortgage lending businesses. With a more challenging macro environment on the way, the company just might view a stock split as a way to boost investors' interest.
Seaboard (SEB 1.18%) doesn't trail behind NVR very much with a share price of close to $4,150. The share price of the agribusiness and transportation company has topped $1,000 throughout most of the 21st century.
But Seaboard and NVR have something else in common in addition to their high share prices. Like NVR, Seaboard has never split its stock.
Is there any reason to expect Seaboard's management team to have a change of heart about a stock split? Not really. Robert Steer has served as CEO of the company since July 2020. There's nothing to suggest that Steer has a split on his mind.
Seaboard's executive team is more likely focused on some of the tailwinds impacting the business. Inflation, especially higher fuel costs, presents a key challenge for the company.
3. Booking Holdings
Booking Holdings (BKNG 0.72%) claims the third-highest share price after NVR and Seaboard (excluding Berkshire's class A shares). The online travel company's shares currently trade at close to $2,250.
Unlike NVR and Seaboard, Booking does have a stock split in its history. However, it was a unique kind known as a reverse stock split. In June 2003, the company (then known as Priceline) conducted a 1-for-6 reverse stock split in a move that boosted its share price.
Booking's share price is much higher than that of Shopify, another company that has recently announced a stock split. While Booking appears to be a great candidate for a stock split, though, don't count on one happening anytime soon.
However, the situation for Booking could change down the road. As COVID-19 concerns fade, global travel could enjoy an even greater resurgence. That could drive Booking's share price to a high enough level that the company's management puts a stock split on the table.