Apple shares top $US600

Ahead of its stock spilt, Apple shares have topped $US600 for the first time since late 2101.

Apple shares have climbed above $US600 ahead of a stock split and as the company ramps up its stock buy-back program.

Apple shares traded at $US600.96 a share at the close of trading on the NASDAQ exchange and edged up to $US602.20 after hours.

It was the first time that the California company's stock topped $US600 per share since late 2012.

"Maybe the love is for the coming iPhone 6 ... or the wearable 'something' device ... or maybe it is just the action of the split and buyback," Jon Ogg said at stock market specialty website 24/7 Wall Street on Monday.

Apple, the largest US company in terms of market capitalisation, in April announced quarterly earnings that beat expectations by a wide margin.

It also announced a dividend increase, a ramp-up in stock buybacks and a seven-for-one stock split.

The earnings report came with Apple chief Tim Cook hinting that new products are on the way from the maker of iPhones, iPads, iPods, and Macintosh computers.

Apple will spend an additional $US30 billion ($A32.46 billion) to buy back shares of the company's stock, taking to $US130 billion how much it plans to spend on repurchases and dividends by the end of next year.

Apple is pouring $US90 billion into buying back shares because it believes the stock is undervalued in the market, according to executives.

Apple will raise its quarterly dividend to $US3.29 per common share and said it plans to bump up the figure annually.

Its board endorsed a seven-for-one stock split, with each shareholder of record as of June 2 receiving six additional shares for each one they hold.

"We are taking this action to make Apple stock more accessible to a larger number of investors," Cook added.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world