Company shares are up 2.7% in after-hours trading following the announcement of the plan designed to make Netflix shares more affordable to average investors. If the pricing holds tomorrow, then Netflix will hit a new all-time high of nearly $700 a share.
Those who own Netflix on July 2 will receive a dividend, payable on July 14, of six additional shares for each one they own. They will begin to trade on July 15. Purchases made between July 2-July 14 will have a “due bill” entitling them to six additional shares for each one that they buy.
Netflix said in April it planned to split the stock, although it didn’t disclose the ratio. While it doesn’t affect the company’s financial performance, it could make the year’s biggest gainer among the Standard & Poor’s 500 even more popular. The value of Netflix stock has appreciated 99.4% so far in 2015 after it reported earnings that beat expectations and plans to expand to other countries including Italy, Portugal and Spain.