Dallas, Texas 06/24/2015 (Financialstrend) – Netflix, Inc. (NASDAQ:NFLX) Board of Directors has approved a seven for one stock split thanks to an impressive run that has seen the stock clock all-time highs this year. The split is to be implemented in the form of a stock dividend with shareholders walking away with six additional shares for each common stock held.
Terms of the Split
The split will not in any way affect the company’s financial performance but expected to make it more popular in the S&P index as interest from investors grows.
The split will be carried out on July 14, 2015, and applicable to stockholders on record as of July 2, 2015. Normal trading at the post-split price should come into effect on July 15, 2015. The stock split should enable Netflix, Inc. (NASDAQ:NFLX) to be attractive once more to retail investors who perceive the stock quite expensive at the current trading levels.
It will not be the first time that Netflix, Inc. (NASDAQ:NFLX) has carried out a stock split. In 2004, the streaming giant carried out a two in one stock just a reflection of a solid upward momentum ever since the company went public in 2002. Stock split is one of the most effective ways of generating renewed interest on a stock to a larger group of investors.
Growing losses Concerns
International expansion has been the driving force behind the recent rally in the market even though the same efforts have continued to weigh in on profit margins. Netflix, Inc. (NASDAQ:NFLX) with over 62 million subscribers in over 50 countries expects the international expansion efforts to amount to better earnings going forward. The widening of the net loss earlier in the year to $65 million was a point of concern as fears continue to grow that losses could soar to $101 million in the June quarter.