Best upcoming stock splits and reverse splits 2024

Explore the best upcoming stock splits and reverse splits in 2024. Check our detailed calendar for dates, companies, and split ratios.

By Investor Observer team

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23 October 2024

A stock split is when a publicly traded company divides its existing shares into multiple new ones.

This increases the number of outstanding shares and lowers the price of each share, without changing the company’s market value.

So, why do companies pursue this? Although a split doesn’t have any effect on market capitalization, it can still make the stock look more “affordable.”

Some investors may avoid expensive stocks because they can’t afford a single share. High prices can also create the misleading perception of inflated valuation.

Stock splits are common, especially for companies with significantly rising share prices. While often viewed as a positive signal for a company’s future, a stock split doesn’t guarantee continued price growth.

Read on to learn about next stock splits and their impact on shareholders.

Calendar of upcoming stock splits 2024

Below is a list of upcoming stock splits in 2024. The upcoming stock splits (2024 USA) include forward and reverse splits.

Here are all the 2024 stock splits coming up.

Split date	Stock symbol	Company name	Split type	Split ratio
Oct. 28, 2024	KZIA	Kazia Therapeutics Limited	Reverse	1 for 10
Oct. 28, 2024	SVRE	SaverOne 2014 Ltd. ADR	Reverse	1 for 18
Oct. 30, 2024	NA	Nano Labs Ltd. Sponsored ADR Class A	Reverse	1 for 10
Oct. 31, 2024	TKLF	Yoshitsu Co. Ltd. Sponsored ADR	Reverse	1 for 10
Nov. 4, 2024	RGBP	Regen	Forward	0.5 for 1
Nov. 5, 2024	NVMLF	Navarre Minerals Limited	Reverse	1 for 500
Nov. 5, 2024	RDY	Dr. Reddy’s Laboratories Ltd	Forward	0.2 for 1
Nov. 20, 2024	IVIXF	Invion Ltd	Reverse	1 for 100
Nov. 25, 2024	PENMF	Peninsula Energy Limited	Reverse	1 for 20
Dec. 17, 2024	BMNAF	Si6 Metals Limited	Reverse	1 for 20

What is the meaning of a stock split?

Looks play a significant role in many areas of life, and investment banking is no exception.

This is where stock splits come into play, offering investors the perception of affordability without altering the underlying value of the asset.

A stock split is straightforward: a company increases the number of shares while lowering the price per share to attract more investors.

Think of it like slicing a pizza into smaller pieces—there are more slices, but the total amount of pizza remains the same.

Stock splits often follow ratios such as 2-for-1 or 3-for-1, where shareholders receive two or three times as many shares at a proportionally lower price.

While a stock split is typically designed to reduce the price per share, it can also work in reverse, as explained further below.

What is a stock split?

Now that we’ve covered why companies do stock splits, let’s dive into how they actually work.

Most of the time, when you hear about a stock split, it’s a forward split. That’s when a company increases the number of shares by breaking each existing share into smaller ones, making the stock more affordable and boosting liquidity.

Take a 2-for-1 split, for example. For every share you own, you get two, doubling your shares. But since the price per share is cut in half, your overall investment value stays the same.

Let’s say you had 100 shares of a stock priced at $10 each. After a 2-for-1 split, you’d have 200 shares, now priced at $5 each. Your total investment remains the same—just like cutting a pizza into smaller slices doesn’t give you more pizza, it just gives you more pieces.

The same logic applies to a 3-for-1 split. Every share turns into three, tripling the total number of shares, but the price adjusts to keep the total investment unchanged.

The goal of a forward split is simple: make the stock more appealing by lowering the price per share so more investors can jump in.

On the flip side, some companies think their shares are undervalued and aim to raise the price by doing a reverse stock split.

In a reverse split, the company reduces the number of shares by merging them into fewer units. They might do this to stay above a minimum price required by an exchange or to improve how investors perceive them.

For example, in a 1-for-10 reverse split, every 10 existing shares combine into 1. If you owned 1,000 shares at $3 each, after the split, you’d have 100 shares priced at $30 each.

Just like with a forward split, the total value of your investment doesn’t change with a reverse split. You’ll have fewer shares, but each one is worth more, keeping the overall value the same.

Stock split advantages and disadvantages

Stock splits are a common strategy used by publicly traded companies. Although they’re typically seen as market-neutral events, stock splits come with distinct advantages and disadvantages.

Whether or not investors benefit from a stock split depends on several factors, such as timing, market perception, and investor behavior.

Stock split advantages

Companies often choose to split their stock when the share price has risen significantly. Here are four key advantages of a stock split:

Increased liquidity: By lowering the price per share, stock splits make it more affordable to purchase standard lots of 100 shares. This lower price, combined with a greater number of shares in circulation, can boost liquidity, making it easier and cheaper for investors to trade the stock;
Wider appeal to new investors: A lower share price can attract new investors who may have been deterred by a higher price. This can serve as a marketing tool, increasing demand for the stock;
Psychological perception: Stock splits often generate media buzz, especially when high-profile companies like Apple or Nvidia undergo splits. This has led to an association between stock splits and growth or success. The perceived affordability following a split can enhance a company’s image and draw in new investors;
Promote optimal share price: Stock splits can help a company maintain its share price within a targeted range to stay competitive and attract investors. Since a company can split its stock multiple times, this practice can help achieve and maintain an ideal share price.

Stock split disadvantages

While stock splits aim to improve a company's image and lower its share price, their impact has limitations. Here are five key disadvantages:

No change in fundamental value: No matter how often a company splits its stock, the intrinsic value of the business remains unchanged. The company’s market capitalization stays the same, and there are no direct effects on its financial performance;
Increased costs: Despite not affecting the company’s underlying value, stock splits can create additional costs and administrative complexities;
Perception of shareholder dilution: Although stock splits don’t dilute actual ownership, some investors might feel that holding more shares at a lower price devalues their investment, leading to a perception of reduced value;
Potential volatility: Stock splits can attract short-term traders and speculators, which may result in increased volatility and exaggerated price swings. While this can offer higher upside potential, it also brings increased downside risk;
Negative perceptions of reverse splits: A reverse stock split, often done to meet exchange listing requirements, can signal financial struggles or difficulties in raising capital. Even if this isn't the case, it can damage investor sentiment and erode confidence.

Stock split example

Nvidia (NVDA) is one of the most high-profile stock splits that took place this year.

After a remarkable 700% jump in the stock price, the California-based chipmaker announced on May 22, 2024, that it would implement a 10-for-1 forward stock split, which took effect on June 7, 2024, after the market closed.

As a result of the split, investors received nine additional shares for each share they owned, effectively reducing the stock price from approximately $1,208 to around $120.

Although NVDA’s price didn’t surge much on the first trading day post-split, its share price had already risen in anticipation of the split, as investors aimed to take advantage of the newly adjusted price.

In the four months following the stock split, NVDA shares climbed more than 18%, outpacing the S&P 500 and Nasdaq Composite Index.

This performance was bolstered by a strong quarterly earnings report that demonstrated improved profitability and revenue compared to the previous year.

In the end, Nvidia shareholders did benefit from the stock split, but this was primarily due to the company’s strong fundamentals and investor enthusiasm, rather than the split itself.

Recent reverse stock splits include:

Purple Biotech Ltd. (PPBT) - Reverse 1-for-20 on September 17, 2024
Nuvve Holding Corp (NVVE) - Reverse 1-for-10 on September 17, 2024
Mullen Automotive Inc (MULN) - Reverse 1-for-100 on September 17, 2024
Luokung Technology Corp (LKCO) - Reverse 1-for-8 on September 17, 2024
Hyzon Motors Inc (HYZN) - Reverse 1-for-50 on September 11, 2024
Sirius XM Holdings Inc (SIRI) - Reverse 1-for-10 on September 10, 2024
Draganfly Inc (DPRO) - Reverse 1-for-25 on September 5, 2024
Lightinthebox Holding Co Ltd. (LITB) - Reverse 1-for-6 on September 5, 2024
Better Home & Finance Holding Co. (BETR) - Reverse 1-for-50 on August 19, 2024
Ginkgo Bioworks Holdings Inc (DNA) - Reverse 1-for-40 on August 20, 2024

How to choose a broker for stock splitting?

One of a broker’s primary responsibilities is to execute orders on your behalf at the best possible price.

This requires brokers to provide the latest pricing information for every asset they list. As such, brokers automatically adjust trades to reflect the new price of a stock after it undergoes a forward or reverse split.

In the case of forward stock splits, brokers automatically credit additional shares to a shareholder’s account.

For instance, if an investor holds 10 shares of a stock that undergoes a 2-for-1 split, they will be credited with an additional 10 shares, increasing their total to 20 shares.

Conversely, in reverse stock splits, brokers automatically reduce the number of shares a shareholder owns and update the price of the underlying stock accordingly.

If a shareholder ends up with fewer shares than the minimum required by the reverse split, the broker may automatically cash out their position.

When selecting a broker, investors should look for platforms that offer low fees and commissions, multiple account types and investment options, and low minimum deposits to get started.

Many brokers provide zero-commission trades on certain investments, making them attractive to new investors. The best brokers also avoid unnecessarily high account maintenance, withdrawal, and broker-assisted trade fees.

In general, investors should work with brokers that have transparent pricing structures

Leading platforms like Interactive Brokers, Charles Schwab, Webull, E*TRADE, and Fidelity offer transparent pricing and effectively manage the stock split process.

However, it’s crucial to review broker policies for the latest information on how they handle trading fees and stock splits.

While many brokers promote fractional shares trading programs, these should not be confused with stock splits.

As the name suggests, fractional shares are portions of a company’s stock that are smaller than a whole share. Although fractional shares can enhance access to financial markets, they may introduce rounding errors that cause price discrepancies.

Different platforms may also use varying decimal places, leading to rounding issues that could impact investors’ gains or losses over time.

Is an impending split a reason to buy a stock?

An upcoming stock split should not be a sole reason to buy the stock because it does not affect a company’s fundamental value.

When considering an investment, investors should focus on a company’s underlying fundamentals, including earnings, revenue, and balance sheet information.

That said, keeping an eye on upcoming reverse stock splits and other splits can assist investors in identifying potential companies to add to their portfolios.

Although the stock split itself has no effect on stock valuation, it can still positively influence a stock’s performance due to traders' behavioral tendencies.

For example, some traders take advantage of the so-called “reverse split arbitrage”—or price adjustments that occur during and after reverse stock splits.

The fundamental idea is to capitalize on the often temporary mispricing of shares due to corporate actions like reverse splits.

FAQ

What happens if I own shares that undergo a reverse stock split?

When a company announces reverse stock split, the number of shares you hold decreases while the price of each share rises proportionally.

For instance, in a 1-for-10 reverse split, every 10 shares you own are combined into a single new share. Consequently, the price of the new share adjusts to reflect this consolidation.

Are reverse splits good or bad?

Reverse splits are neither inherently positive nor negative because this event does not alter a company’s fundamental value.

However, what a reverse split (stock) can affect is investor perception.

That’s because companies typically carry out these splits to raise their share price above a certain threshold and avoid delisting from an exchange.

Does a stock split make a company more or less valuable?

No, a stock split does not inherently increase or decrease a company's value. While stock splits adjust the price of an individual share, they do not affect the company's overall market capitalization or total value.

How do you know when a stock is going to split?

Companies make stock split announcements well in advance to prepare shareholders and the broader market for the upcoming changes. You can also refer to a stock split calendar available on many websites that provide market data.

What is a split ratio?

A stock split ratio indicates the factor by which a company increases or decreases the number of outstanding shares.

For instance, a 2-for-1 split means that a shareholder will receive two shares for every share they currently own. In contrast, a 1-for-10 reverse split means that a shareholder will receive one new share for every ten shares they hold.