How do companies decide if a stock is to split.?

Question

I own stock in a company that split several years ago when it was around 34.00 per share. It is now hovering between 40 and 42 per share and I am curious when to expect another split to occur?

Answer 1

This action requires a resolution of the Board of Directors, perhaps on the advice of their financial advisers, and there is no way to predict when or if they will make that decision.

Answer 2

It really depends on the philosophy of the particular company.  Many companies have the philosophy that their stock should trade in the $25 to 50 range so they will split the stock when it moves into the $50 to $100 range.  But it also depends on the company outlook.  If the outlook is not too good, they will not split the stock because then it might fall below $25 a share, which is not considered too good a price.  Since the enconomy is going to h**l, there probably will not be too many stock splits in the near future.